Each one in plain English, with the numbers worked through for a shareholder.
21 Feb 2020capital raising announcement● NeutralMajor
CRC launched private exchange offers asking holders of its 8% second lien notes due 2022, 5 1/2% notes due 2021 and 6% notes due 2024 to swap them for new term loans due 2028 with CRC warrants, or for royalty notes and shares in Elk Hills RoyaltyCo. Supporting holders also agreed to take warrants for up to 3,447,184 CRC shares at $9.25 each, if the offers close. This is an attempt to cut debt outside court, and the warrants would dilute existing shareholders. The offers were followed by the July 2020 Chapter 11 filing, so it is an inference that they did not complete as planned.
23 July 2019capital raising announcement▲ GoodMajor
CRC formed a joint venture with Colony Capital's energy arm, Colony HB2 Energy, which committed $320 million (up to $500 million if all parties agree) to develop the Elk Hills field. Colony funds 100% of about 275 wells over roughly three years and earns a 90% working interest, with CRC's interest reverting from 10% to 82.5% once Colony reaches an agreed return. Colony also receives warrants for up to 800,000 shares (up to 1.25 million if the commitment grows) at $40 per share, which would dilute shareholders if exercised. CRC says the deal helps its deleveraging efforts.
This amendment only re-tags the original April 9, 2018 8-K in the SEC system and changes none of its text. That original report covered CRC's purchase from Chevron of the remaining interests in the 47,000-acre Elk Hills field for $460 million cash plus 2,850,000 CRC shares, effective April 1, 2018. Chevron's resale of the shares is limited under a registration rights agreement. This gives CRC the remaining ownership of Elk Hills, but the filing itself adds nothing new.
CRC formed the Elk Hills Power joint venture with an Ares portfolio company, which invested $750 million for preferred and certain common interests, and the JV paid $739 million in cash to CRC. Ares-led investors also bought $50 million of CRC stock at $21.33 per share, about $297 million of proceeds repaid revolver loans, and the preferred interests carry a 13.5% annual distribution.
On October 7, 2016, CRC agreed with certain holders of its 6% notes due 2024 and 5 1/2% notes due 2021 to swap $21,296,700 of those notes for 1,261,043 newly issued common shares. This trades a small amount of the debt inherited from the 2014 spin-off for new shares, so the debt falls slightly and the share count rises.
