Bullish energy lenders have increased their price decks. They are also buying discounted energy loans from money-center banks.

Despite the credit morass that has hit the behemoth New York-based money-center banks the hardest, regional energy banks report having capital available to exploration and production companies as that sector continues to outperform the broader market.

In fact, many energy banks are seeing more business come down market to them, as bigger institutions adversely affected by subprime mortgage losses try to shed loans in an effort to improve liquidity.

Ironically, oil and gas, once perceived as a risky, even alternative investment by some, is now perceived as safe, as ...