Extraction OIl & Gas problems continue, the company CFO reported during its Q1 call that its lenders cut it borrowing base and the company drew down the remaining capital.
The company also said "We have engaged advisors as we evaluate our strategic options in this challenging environment,”
From the Q1 2020 Earnings Call.
Marianella Foschi
Thank you, Mark. We ended the first quarter with $32 million in cash on our balance sheet and $470 million drawn on our revolving credit facility after giving effect to $49.5 million of standby letters of credit, we had just under $431 million of liquidity.
In late April, the lenders in our credit facility reduced the company's borrowing base by $300 million to $650 million. The threat of termination reduce available liquidity $150 million,
Just for [ph] determination reduce available liquidity to just over $80 million after taking into account that 15 point draw we made earlier in the quarter to make our ad valorem tax payments. And out of an abundance of caution in these uncertain times, we threw down that remaining $80 million to hold on our balance sheet.
After this draw, as of May 7th, 2020, we have $600.5 million drawn on our revolver and approximately $94 million in cash on the balance sheet. We have engaged advisors as we evaluate our strategic options in this challenging environment and we will keep you posted on any additional material development.
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