JPMorgan Chase & Co. (NYSE: JPM) disclosed on April 29 that its "criticized" loans to the oil and gas industry more than doubled in the first three months of the year.
Criticized oil and gas loans, which are defined by regulators as doubtful, substandard or deserving of special mention, rose to $9.7 billion at the end of March from $4.5 billion at the end of December, according to a quarterly filing the company made with the U.S. Securities and Exchange Commission.
Of the criticized loans, $8 billion were still performing, according to the filing.
The change in criticized status comes as JPMorgan and other banks have added to reserves for possible loan losses because of the impact on sharply lower oil revenue on the ability of borrowers in the shale oil industry to repay their debts.
A JPMorgan spokesman declined further comment.
JPMorgan said its total exposure to oil and gas and natural gas pipeline industries had risen $1.5 billion to $47.9 billion, or 5.8% of total wholesale loans and commitments to lend.
The company said earlier this month that it had some attractive opportunities to make additional loans to the industry.
Recommended Reading
Kissler: OPEC+ Likely to Buoy Crude Prices—At Least Somewhat
2024-03-18 - By keeping its voluntary production cuts, OPEC+ is sending a clear signal that oil prices need to be sustainable for both producers and consumers.
Canadian Natural Resources Boosting Production in Oil Sands
2024-03-04 - Canadian Natural Resources will increase its quarterly dividend following record production volumes in the quarter.
NGL Growth Leads Enterprise Product Partners to Strong Fourth Quarter
2024-02-02 - Enterprise Product Partners executives are still waiting to receive final federal approval to go ahead with the company’s Sea Port Terminal Project.
After Megamerger, Canadian Pacific Kansas City Rail Ends 2023 on High
2024-02-02 - After the historic merger of two railways in April, revenues reached CA$3.8B for fourth-quarter 2023.
Uinta Basin: 50% More Oil for Twice the Proppant
2024-03-06 - The higher-intensity completions are costing an average of 35% fewer dollars spent per barrel of oil equivalent of output, Crescent Energy told investors and analysts on March 5.