Chaparral Energy completed its regularly scheduled fall borrowing base redetermination which, among other things, increased its credit facility from $400 million to $750 million.
According to a related 8-K filing, Royal Bank of Canada took over as the facility’s new administrative agent, replacing previous agent JPMorgan Chase.
The redetermination also:
- Increased the borrowing base from $265 million to $325 million
- Reduced the pricing grid by 50 basis points
- Changed the hedge capacity to 80% of internally forecasted production for the first 24 months
Chaparral currently has no borrowings under the credit facility. Its next semi-annual borrowing base redetermination will be in the spring of 2019.
“We are very pleased with the outcome of our fall borrowing base redetermination,” said Chaparral CEO Earl Reynolds. “The continued support we have received from our banks and their recognition of our premier STACK assets provides us with the financial flexibility to adjust to changing market conditions. With our deep inventory of high-return STACK drilling prospects, strong balance sheet and increased borrowing base, we will be able to continue to deliver outstanding results in one of America’s most active and economic regions.”
Founded in 1988 and headquartered in Oklahoma City, Chaparral Energy is an independent oil and natural gas exploration and production company focused in Oklahoma’s highly economic STACK Play, where it has approximately 127,000 net acres primarily in Kingfisher, Canadian and Garfield counties.