Powering the energy sector requires industry expertise, strategic financial solutions, and strong partnerships. With recent changes to the Energy Lending industry, we caught up with C.T. Young, our Energy Lending Manager, to discuss the updates and why Mabrey Bank is excelling in providing energy-specific products and services.
Why do community and regional banks, like Mabrey, make for strong financial partners of energy-focused businesses?
The energy lending landscape has undergone a seismic shift over the past five years. Over that time, many large national banks scaled back their energy portfolios, which could have spelled trouble for the industry. What ensued was the largest transfer of market opportunity in energy banking history, leading to community and regional banks becoming the backbone of financing for energy companies in America.
While national banks focused mainly on commodity prices, at Mabrey, we have been able to develop strong relationships thanks to our local market knowledge and deep understanding of the operational nuances that make one producer different from another.
Energy is a capital intensive and cyclical industry. Bankers like myself, who’ve lived through multiple commodity cycles, understand that a company’s performance during the downturn matters more than their performance at the peak. At Mabrey, we know how to structure facilities that work through the valleys, not just the mountaintops.
What separates Mabrey Bank as a leading partner for energy businesses?
Ultimately, speed matters in the energy sector. When an independent producer finds a drilling opportunity or acquisition target, they need a financing decision in weeks, not months. Mabrey Bank can move faster because our decision-makers are local, not spread out across markets.
For example, I recently closed a $12 million borrowing base facility in 25 days. A less local partner may have taken up to 90 days to finance that loan. Speed isn’t just a convenience for our energy partners, but it truly gives them a competitive advantage.
When a borrower calls outside of business hours with a question about their borrowing base, I want them to know they’ll reach me directly. Let’s say commodity prices plunge 15%. My clients and I are already having conversations about solutions so that problems don’t turn into crises.
How are current energy clients thriving in their partnership with Mabrey?
I know I probably sound like a broken record, but the speed of a financing decision allows our partners to thrive. We average 45 days on a decision where the industry average is 75 days. Not only can we make these decisions quickly, but we offer flexible financing options that we can cater to your unique situation. It can’t be a one-size-fits-all strategy when it comes to a loan.
Finally, our expertise really sets us apart. For me personally, I have spent the majority of my career focused on energy lending. As the head of our energy lending division, I’ve spent the last decade building relationships with independent producers across the region, familiarizing myself with the business model for energy corporations to understand when there are strategic opportunities to grow. Mabrey Bank is leaning into energy banking, and it’s become a priority for us bankwide.
What would you tell an energy business that is not currently banking with Mabrey but is looking for a better financial partnership?
The future of energy banking isn’t about balance sheets, it’s about relationships and expertise. If you’re an independent producer still banking with an institution that views energy as a “legacy sector,” you’re leaving money on the table. The banks having success in today’s landscape are those that see opportunity where others see risk. Mabrey Bank is one of those that sees opportunity.
At the end of the day, we’re not just lending money. We’re partnering with the companies that power America.
If you are looking for a new financial partner, I’d love to connect and tell you more about how Mabrey Bank can help you take the next step.