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Ring Energy's Credit Line Reaffirmed at $350 Million

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   |    Monday,June 14,2021

Ring Energy Inc. announced that the borrowing base under its senior revolving credit facility was successfully reaffirmed at its current level of $350 million.

Key Highlights:

  • Reaffirmation of the borrowing base at $350 million;
  • Easing of the minimum required oil hedges for calendar 2022 from 4,000 BOPD to 3,100 BOPD, which is fully covered by oil hedges currently in place;
  • Enhances price optionality and increases forecasted 2021 cash flow generation; and
  • Next regularly scheduled bank redetermination will be on or around November 1, 2021.

Mr. Paul D. McKinney, Chairman of the Board and Chief Executive Officer, commented, "We are very pleased with the positive outcome of our spring 2021 bank redetermination. Our focus on operational excellence and cost reduction initiatives, coupled with the substantial improvement in economic activity and increased oil prices, helped to solidify this positive outcome. We appreciate our banking group's clear recognition of the enhanced global backdrop as evidenced by the more than 20% reduction of required hedging levels for calendar 2022 included in the amended agreement. As a result, we have pivoted to a more opportunistic hedging strategy that allows us to benefit from a higher oil price environment for the second half of 2021, but also adds potential for increased free cash flow generation in 2022. Our primary focus remains on maximizing free cash flow generation to better position Ring to capitalize on future opportunities for the benefit of our shareholders."

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