Denbury Announces Borrowing Base Redetermination and Amendment to Credit Facility; Provides Update on Commodity Hedge Positio...
19 April 2016 - 8:30PM
Denbury Resources Inc. (NYSE:DNR) (“Denbury” or the “Company”)
today announced that it has completed its May 2016 credit facility
borrowing base redetermination, as well as an amendment to such
credit facility. The redetermination resulted in a revised
borrowing base and commitment level of $1.05 billion, as compared
to the Company’s previous commitment level of $1.50 billion, now
rendering the lender commitments and borrowing base under the
credit facility identical. The Company’s next scheduled
borrowing base redetermination will occur on or about November 1,
2016.
Among other changes, the amendment to the credit
facility:
- permits the Company to incur up to $1 billion of junior lien
debt that may be issued in exchange for, or the proceeds of which
may be used to purchase, refinance or replace the Company’s
existing senior subordinated notes or other unsecured indebtedness,
with up to $300 million of the proceeds of such debt usable for
general corporate purposes and other purposes not otherwise
prohibited by the credit facility; and
- increases the mortgaged property collateral requirement from
85% to 90% of the PV-9 value of all proved reserves included as
borrowing base properties.
At March 31, 2016, the Company had $310.0
million outstanding under its credit facility, an increase from
$175.0 million outstanding as of December 31, 2015. The
increase in borrowings under the credit facility is due in part to
the Company drawing approximately $55.5 million in the first
quarter of 2016 to repurchase $152.3 million face amount of its
senior subordinated notes in open-market transactions, resulting in
a net reduction in debt of approximately $96.8 million.
The Company has recently added to its hedging
positions and now has oil hedges in place through the second
quarter of 2017 as follows:
|
|
2Q16 |
3Q16 |
4Q16 |
1Q17 |
2Q17 |
WTI NYMEX |
Volumes Hedged
(Bbls/d) |
|
11,500 |
|
|
18,500 |
|
|
26,000 |
|
|
22,000 |
|
|
22,000 |
|
Fixed-Price Swaps |
Swap Price (1) |
$ |
61.84 |
|
$ |
38.96 |
|
$ |
38.70 |
|
$ |
42.67 |
|
$ |
43.99 |
|
WTI NYMEX |
Volumes Hedged
(Bbls/d) |
|
2,000 |
|
— |
— |
— |
— |
Enhanced Swaps |
Swap / Sold Put Price
(1)(2) |
$90.35 / $68 |
— |
— |
— |
— |
Argus LLS |
Volumes Hedged
(Bbls/d) |
|
3,500 |
|
|
7,000 |
|
|
7,000 |
|
|
10,000 |
|
|
7,000 |
|
Fixed-Price Swaps |
Swap Price (1) |
$ |
64.99 |
|
$ |
39.61 |
|
$ |
39.16 |
|
$ |
43.77 |
|
$ |
45.35 |
|
Argus LLS |
Volumes Hedged
(Bbls/d) |
|
6,000 |
|
— |
— |
— |
— |
Enhanced Swaps |
Swap / Sold Put Price
(1)(2) |
$93.38 / $70 |
— |
— |
— |
— |
WTI NYMEX |
Volumes Hedged
(Bbls/d) |
|
5,000 |
|
|
4,500 |
|
— |
— |
— |
Collars |
Ceiling Price / Floor
(1) |
$71.01 / $55 |
$71.22 / $55 |
— |
— |
— |
WTI NYMEX |
Volumes Hedged
(Bbls/d) |
|
2,000 |
|
— |
— |
— |
— |
3-Way
Collars |
Ceiling Price / Floor /
Sold Put Price (1)(2) |
$95.50 / $85 / $68 |
— |
— |
— |
— |
Argus LLS |
Volumes Hedged
(Bbls/d) |
|
2,000 |
|
|
3,000 |
|
— |
— |
— |
Collars |
Ceiling Price / Floor
(1) |
$73 / $58 |
$73.85 / $58 |
— |
— |
— |
Argus LLS |
Volumes Hedged
(Bbls/d) |
|
2,000 |
|
— |
— |
— |
— |
3-Way
Collars |
Ceiling Price / Floor /
Sold Put Price (1)(2) |
$98.25 / $88 / $70 |
— |
— |
— |
— |
|
Total Volumes Hedged
(Bbls/d) |
|
34,000 |
|
|
33,000 |
|
|
33,000 |
|
|
32,000 |
|
|
29,000 |
|
(1) Averages are volume weighted.
(2) If oil prices were to average less than the sold put price,
receipts on settlement would be limited to the difference between
the swap or floor price and the sold put price.
Denbury is an independent oil and natural gas
company with operations focused in two key operating areas: the
Gulf Coast and Rocky Mountain regions. The Company’s goal is
to increase the value of its properties through a combination of
exploitation, drilling and proven engineering extraction practices,
with the most significant emphasis relating to CO2 enhanced oil
recovery operations.
DENBURY CONTACTS: Mark
C. Allen, Senior Vice President and Chief Financial Officer,
972.673.2000John Mayer, Investor Relations, 972.673.2383
Denbury Resources (NYSE:DNR)
Historical Stock Chart
From Apr 2024 to May 2024
Denbury Resources (NYSE:DNR)
Historical Stock Chart
From May 2023 to May 2024
Real-Time news about Denbury Resources Inc (New York Stock Exchange): 0 recent articles
More News Articles