Diversified Gas & Oil PLC Announces Borrowing Base Reaffirmation

Rhea-AI Summary

Diversified Gas & Oil PLC (LSE:DGOC) has announced that its lending group led by KeyBank National Association has reaffirmed its $425 million borrowing base for the senior secured credit facility. This decision reflects the company's robust portfolio of stable-producing wells and midstream assets. CEO Rusty Hutson, Jr. acknowledged the bank group's support amid pandemic challenges, emphasizing the company’s liquidity and ongoing potential for portfolio expansion. The next borrowing base redetermination is scheduled for Q4 2021.

Positive

• Reaffirmation of $425 million borrowing base provides continued liquidity.
• No changes to pricing, covenants, or material terms enhance financial stability.
• Strong portfolio of stable-producing wells with long-life reserves.
• Support from a diverse 16-member bank group underscores confidence in the company's strategy.

Negative

• None.

BIRMINGHAM, AL / ACCESSWIRE / April 8, 2021 / London LSE-quoted Diversified Gas & Oil PLC (LSE:DGOC) ("DGO" or "the Company") is pleased to announce that the Company's bank lending group, led by KeyBank National Association (the "Bank Group"), reaffirmed the existing $425 million borrowing base of the Company's senior secured credit facility (the "Credit Facility") with no changes to pricing, covenants or other material terms after completing the Credit Facility's semi-annual redetermination.

Rusty Hutson, Jr., CEO of the Company commented, "Once again, our portfolio of stable-producing wells with long-life reserves complemented by robust hedges and value-enhancing midstream assets garnered a unanimous reaffirmation of our current borrowing base. Ever mindful of the challenging pandemic and related volatility, I would like to thank our sixteen-member bank group for their support of our differentiated business strategy through lending and other services that support our hedging and financing activities. The reaffirmation solidifies our liquidity as we continue to evaluate opportunities to create stakeholder value by enlarging our portfolio of producing and midstream assets over which we can deploy our Smarter Asset Management programs."

The Company's next scheduled redetermination will occur during the fourth quarter of 2021.

For additional information, please contact:

Diversified Gas & Oil PLC
Teresa Odom
Vice President, Investor Relations
+1 205 408 0909
www.dgoc.com
ir@dgoc.com

Buchanan
Financial Public Relations
Ben Romney
Chris Judd
Kelsey Traynor
James Husband
+44 20 7466 5000
dgo@buchanan.uk.com

About Diversified Gas & Oil PLC

Diversified Gas & Oil PLC is an independent energy company engaged in the production, marketing and transportation of primarily natural gas related to its synergistic US onshore upstream and midstream assets.

SOURCE: Diversified Gas & Oil PLC

View source version on accesswire.com:
https://www.accesswire.com/639412/Diversified-Gas-Oil-PLC-Announces-Borrowing-Base-Reaffirmation

FAQ

What did Diversified Gas & Oil announce on April 8, 2021?

On April 8, 2021, Diversified Gas & Oil announced the reaffirmation of its $425 million borrowing base by its bank lending group.

Who leads the bank lending group for Diversified Gas & Oil?

The bank lending group for Diversified Gas & Oil is led by KeyBank National Association.

What does the reaffirmation of the borrowing base mean for Diversified Gas & Oil?

The reaffirmation means that there are no changes to pricing, covenants, or other terms, which helps maintain the company's liquidity.

When is the next scheduled borrowing base redetermination for Diversified Gas & Oil?

The next borrowing base redetermination for Diversified Gas & Oil is scheduled for the fourth quarter of 2021.