Panhandle Oil and Gas entered into an agreement with Bank of Oklahoma (BOK) during its scheduled borrowing base redetermination to amend its revolving credit facility. The amended facility reduces Panhandle’s borrowing base to $32 million effective June 24. The next regularly scheduled borrowing base redetermination is expected to occur in December 2020.
“I’d like to thank BOK for continuing to be an excellent partner and working collaboratively with Panhandle during this historic downturn in commodity prices,” Chad Stephens, president and CEO of Panhandle Oil and Gas, said. “We are confident that the plan we have in place to weather the current industry downturn will help transform Panhandle into a better and stronger company. We have reduced G&A and taken other measures to allow us to withstand this downturn and are continuing to explore the sale of certain assets which will also improve our liquidity position. In addition, we expect to continue to apply any free cash flow to further reduce our debt.”
As of June 23,, Panhandle had net debt of $27.7 million, which was made up of $30 million of debt outstanding and $2.3 million of cash on hand.
Panhandle Oil and Gas is an Oklahoma City, OK-based oil and natural gas mineral company.