Pipestone Energy increased its reserve-based loan to $280 million from $225 million. The credit facility upsize is driven by Pipestone’s execution of its organic development program, resulting in an increase to its proved producing reserve value during 2021. The larger credit capacity provides Pipestone with increased liquidity and flexibility with respect to its go-forward business plans and future shareholder return objectives.
After the closing of this biannual reserve-based loan redetermination, the facility now consists of a $250 million syndicated revolving facility and a $30 million bi-lateral operating facility. The banking syndicate for the facility, which is co-led by National Bank Financial and the Bank of Montreal and includes ATB Financial and Canadian Western Bank, was expanded to also include the Business Development Bank of Canada. Additionally, Pipestone amended its credit agreement to allow for future permitted distributions, subject to certain customary liquidity and forecast leverage tests. The credit facility continues to have a revolving period until May 31, 2022, with a maturity of May 31, 2023. The next borrowing base redetermination is scheduled for May 2022.
