JPMorgan Extends PDC Energy Credit Facility
PDC Energy announced that it entered into its third amended and restated credit agreement with its current group of lenders led by JPMorgan Chase Bank as administrative agent. The new facility maintained the company’s borrowing base at $450 million post the planned divestiture of non-core Colorado natural gas assets, subject to normal semi-annual redetermination.
The maturity date was extended by approximately two and one-half years to May 21, 2018. The new facility also amends certain other provisions, including a reduction of the applicable interest rate on its borrowing options and increased flexibility for hedging positions related to the company’s expected production.
Gysle Shellum, chief financial officer, stated, “We felt the timing was right to extend the maturity of our revolver, and we are pleased with the improved pricing and borrowing base of $450 million considering the pending sale of our non-core Colorado gas properties. We expect to substantially fund our 2013 capital program with proceeds from the divestiture and cash flow from operations, and to exit the year with an expanded borrowing base and ample liquidity.”
PDC Energy is a domestic independent energy company engaged in the exploration, development and production of crude oil, NGLs and natural gas.