National Bank Financial, Bank of Montreal, ATB Financial and Canadian Western Bank redetermined Pipestone Energy’s $225 million reserve-based loan.
The credit facility’s capacity was maintained at $225 million, of which Pipestone Energy has drawn approximately $184 million as of June 12. The company’s previously announced $60 million capital program for 2020 is more than 95% complete, and with minimal capital expenditures forecast for the remainder of 2020, the company expects to generate cash flow in excess of capital spending. As part of the amendment to its credit facility, the company is restricted from spending more than $65 million of capital in 2020 without unanimous consent from its banking syndicate. This provision is a temporary amendment, which will terminate at the next redetermination, which is scheduled for November 2020.
