"ABS" 2026 SPECIAL REPORT

Energy Advisors Group has released a Special Report focused on the growing use of ABS financing for oil and gas deals. The market emerged in 2019 with companies refinancing PDP as an alternative to traditional RBLs and has now grown to become a core piece of PDP buying strategies.

Insight: "In the current market environment, operators are buying PDP with double-digit cash flow yields and financing with mid-single digit ABS debt."

Contents:

----- Introduction

----- Basic Principles and Comparative Features

----- Risk, Reward, Structuring

----- ABS Driven Deal Flow, Issuances by Company, By Year, By Deals

----- How It Works - Comparative Illustration of Funding A $550MM Deal

----- ABS Cash Waterfall - From Wellhead To Operator

----- Case Study - Diversified Energy Building A New-Age Company For Buying & Managing Mature Assets

Quick Key Takeaways:

----- Large Market: Oil & Gas is gaining acceptance as an investable asset in the large U.S. ABS market but still only represents <5% of the overall ABS market.

----- ABS Features: Bankruptcy remote, no corporate covenants, hedges required, usuallyself-amortizing

----- Rewards & Risks: Increased access to capital at low fixed rates. Hedges are not perfect, traditional oil & gas risks.

----- Stats: Since 2019, >$21B issued and >$15.4B in 31 ABS financed PDP deals. 2026 YTD setting record pace with >$3.8B issued and >$5.5B in 7 ABS PDP financed deals.

-----Leaders: Stone Ridge, Diversified, Jonah and Pure West have issued ~$2B or greater in ABS.

-----Rates: Diversified recently showed ABS fixed rates of 6.5% vs. 7.0% floating rate for an RBL and 8.0% fixed rate for a corporate note offering on the same deal.

#1---

Here's our Introduction

#2---

Here's some basic principles and comparative features

#3---

Here's a Quick Look at Oil & Gas ABS activity

The 10-page report is available to the right.

Energy Advisors Group is working hard to expand our thought leadership and look forward to providing additional market insight for our clients through regional perspectives, M&A analysis and market monitor.

Our firm has been serving the needs of buyers, sellers and capital providers for over thirty-five years.

TO LEARN MORE:

Blake Dornak

Vice President

Phone: 713-600-0169

– Email: [email protected]

Christian Jones

Director

Phone: 713-857-1213

– Email: [email protected]

Brian Lidsky

Director-Research & Special Projects

Phone: 713-600-0138

– Email: [email protected]

IF YOU NEED ASSISTANCE downloading the full report or creating a login into our platform, contact:

Stephanie Epps

– Email: [email protected]

This article is for informational purposes only and not intended as financial advice. Please conduct your own research before investing.