Sanchez Energy announced it received commitments from its lending group to increase its available borrowing base under its $500 million first lien revolving credit facility from $175 million to $300 million.
According to the company’s 8-K filing dated June 3, 2013, Royal Bank of Canada was shown as administrative agent, Capital One was shown as syndication agent, and RBC Capital Markets was shown as sole lead arranger and sole bookrunner.
Michael G. Long, SVP and CFO of Sanchez Energy, said, “Our strong reserve growth and increased percentage of proved developed reserves has resulted in another significant expansion of our available borrowing base under our revolving credit facility, which is re-determined quarterly. That available amount has increased from $175 million to $300 million. With no drawings under our revolving credit facility and approximately $270 million of cash on hand at September 30, 2013 (pro forma for closing the Wycross acquisition), we have approximately $570 million of liquidity, after the expansion of our revolving credit line. We anticipate being able to fund our previously announced preliminary 2014 capital program from cash, cash-flows and a modest usage of the revolver, while retaining significant liquidity, as our proved reserve base continues to grow. We have also increased our hedging program and now have between 55% and 60% of our anticipated 2014 production hedged with a combination of swaps and collars at an average swap or floor price of $94 per barrel.”
Sanchez Energy is an independent exploration and production company that acquisitions and develops unconventional oil resources in the onshore U.S. Gulf Coast, with a current focus on the Eagle Ford Shale.