San Antonio-based service company Pioneer Energy Services has sold four rigs and renegotiated its revolving credit with 10 banks after crude oil prices hit seven year lows earlier this month.

Under the new agreement with a lender group led by Wells Fargo as administrative agent, the drilling rig operator is decreasing its aggregate amount of commitments from $300 million to $200 million. The deal changes numerous dates and terms of the company’s credit agreement.

Although the amended credit agreement reduces the company’s borrowing commitments, it provides more flexible covenant provisions enabling it to avoid taking on expensive debt while strategically positioning for when oil prices bounce back.

“As a result of the further deterioration of commodity prices and weak demand for our equipment and services, we are continuing to proactively manage our balance sheet and work closely with our bank group to maintain a credit facility that provides Pioneer adequate liquidity and financial flexibility,” said William Stacy Locke, president and CEO of Pioneer Energy Services.

Pioneer Energy Services lenders included Wells Fargo Bank, Bank of America, Royal Bank of Canada, Whitney Bank, Regions Bank, Santander Bank, Amegy Bank, Comerica Bank, Goldman Sachs Bank and Sumitomo Mitsui.