DCP - DCP Midstream unveils sustainability-linked revolving credit facility

DCP Midstream (DCP +1.7%) announced after Tuesday's close that its $1.4B revolving credit facility was amended and renewed to be linked to the company's progress toward reaching its emission-reduction targets. DCP said the interest and fees paid on the revolver will be linked to two sustainability metrics: its progress toward reaching its target to reduce greenhouse gas emissions, as published in its 2021 sustainability report, and outperforming midstream industry peers in safety performance. The U.S. oil and gas industry still accounts for a small fraction of U.S. loans with terms tied to environmental, social and governance targets, Bloomberg notes; before DCP, only Cheniere Energy and Occidental Petroleum had announced loan agreements featuring ESG clauses. DCP Midstream's business model "ensures a great deal of stability regardless of conditions in the broader economy," Power Hedge writes in an analysis posted on Seeking Alpha.

For further details see:

DCP Midstream unveils sustainability-linked revolving credit facility