29 May 2018debt financing▲ Good
Amendment No. 4 raised the credit facility's borrowing base to $800 million as of May 23, 2018 and cut every interest margin on borrowings by 0.50%, lowering the cost of the credit line.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
2 Mar 2018material agreement● NeutralMajor
Under Amendment No. 3, lenders consented to Elevation Midstream, LLC becoming an unrestricted subsidiary (outside the credit agreement's restrictions) and to certain assets being transferred to it. The amendment also allows certain debt tied to transportation service agreements with it. Continues the midstream-related steps begun with the March 2017 amendment (inference: that earlier investment is the same project).
25 Jan 2018debt financing● NeutralMajor
Extraction issued $750 million of 5.625% senior notes due February 1, 2026 at par. A tender offer for its 7.875% notes due 2021 drew $500,574,000 (91.0%) of those notes, paid on January 25, 2018, with another $5,165,000 pending delivery; any notes left will be redeemed on February 17, 2018. Filing doesn't state that the new notes funded the tender (inference: likely related), but this retires the 2021 debt flagged in the August 2017 credit agreement.
9 Jan 2018debt financing▲ Good
Amendment No. 2 set the borrowing base at $750 million from the November 1, 2017 redetermination, though actual borrowing is still capped by lender commitments of $650 million. It also raised the cap on a letter of credit for a crude oil purchaser from $25 million to $35 million.
13 Oct 2017debt financing▲ Good
An amendment added new lenders and raised the credit facility's borrowing base from $375 million to $525 million, increasing how much the company can borrow against its reserves.
21 Aug 2017debt financing● NeutralMajor
The company replaced its 2014 credit agreement with an amended and restated $1.5 billion facility from Wells Fargo and other lenders, with an initial borrowing base of $375 million, maturing August 16, 2022 unless earlier triggers apply. Those triggers tie to the 7.875% notes due 2021 and the Och-Ziff-linked convertible preferred equity (OZ Preferred Equity) not being refinanced, converted or extended by set dates.
3 Aug 2017debt financing● NeutralMajor
Extraction issued $400.0 million of 7.375% senior unsecured notes due May 15, 2024, at par, guaranteed by its subsidiaries. This adds long-term debt, with interest paid twice a year starting November 15, 2017.
21 Mar 2017material agreement● Neutral
Lenders agreed to Amendment No. 11 to the Wells Fargo-led credit agreement, allowing the XTR Midstream subsidiary to invest in an unaffiliated third party (up to $5 million cash, $10 million total including assets) and letting the company sign a transportation agreement with that party's subsidiary. The filing does not name the third party or change the borrowing amount.
16 Dec 2016capital raising announcement▲ GoodMajor
The December 12 share sale closed (stated here as 25,041,041 shares at $18.25), raising about $457 million gross and about $442 million after commissions and expenses. The company must file a resale registration (Form S-1) within 30 days of closing so the buyers can sell the shares.
What it means for a shareholder
25.0m new shares at $18.25 to raise about $457m. That's 15% dilution: every existing holder's slice gets 15% smaller. If you held $1,000 of shares (55 at the issue price), your slice goes from 0.0000373% to 0.0000319% of the company. To keep it you'd need 9 more shares - about $164 at the issue price.
Create a free account to see this worked out for your own holding.
12 Dec 2016material agreement● NeutralMajor
Extraction agreed to sell 25,041,095 new shares of common stock to a group of purchasers at $18.25 per share in a private deal, which adds shares to the existing count. The filing also updates its 2017 hedges: about 1,500 MBbls of oil in swaps at $43.84/Bbl, about 6,250 MBbls in collars with $47.70 floor and $55.94 ceiling, and about 25,420,000 MMBtu of gas in swaps at $3.06/MMBtu.
7 Oct 2016listing compliance notice▲ GoodMajor
Nasdaq certified Extraction Oil & Gas, Inc.'s securities for listing, clearing them to begin trading.