Daily News: May 24, 2018

Bank of Texas Upsizes Earthstone Energy Facility to $225MM


Earthstone Energy increased the borrowing base under its senior secured revolving credit facility from $185 million to $225 million in connection with its regularly scheduled redetermination.

According to a related 8-K filing, Bank of Texas served as administrative agent and lead arranger, Wells Fargo was syndication agent, and Royal Bank of Canada, SunTrust Bank, KeyBank and IberiaBank were lenders in the syndicate.

The company also entered into an amendment to its credit facility, which provides for a 50-basis point decrease in the interest rate on outstanding loans, increased flexibility related to hedging limitations and improved the company’s ability to make short-term borrowings via a swingline as a part of the borrowing base.

Mark Lumpkin, Jr., executive vice president and chief financial officer of Earthstone Energy, commented, “We continue to make strong progress in our operational plans. This increase in the borrowing base and more flexible terms under our Credit Facility are reflective of our favorable drilling and completion results in which we are meeting or exceeding our type curves and of improved commodity prices. Based on the increase in the borrowing base our liquidity has increased to over $200 million. We appreciate the support of our lending group in helping us to achieve our goals.”

Earthstone Energy is an independent energy company engaged in the development and operation of oil and natural gas properties.