Riley Permian Announces Credit Facility Extension and Increase in Borrowing Base

Rhea-AI Summary

Riley Exploration Permian announced an amendment to its senior secured revolving credit facility, extending the maturity from September 2023 to April 2026. The borrowing base increased by 14%, from $175 million to $200 million. The amendment also relaxed minimum hedging requirements, allowing for more flexible hedging decisions. As of April 29, 2022, the company had $63 million drawn on the facility with $137 million available. The new hedge requirements cover 25% of forecasted PDP production volumes for the next 24 months, down from 50%.

Positive

• Maturity extension of credit facility to April 2026 enhances financial flexibility.
• Increased borrowing base provides additional capital support for operations.
• Relaxed hedging requirements allow for strategic discretion in market adjustments.

Negative

• None.

OKLAHOMA CITY, May 2, 2022 /PRNewswire/ -- Riley Exploration Permian, Inc. (NYSE American: REPX) ("Riley Permian", the "Company", "we" or "our"), announced that last week it completed an amendment to its senior secured revolving credit facility ("Credit Facility"). 

Credit Facility Amendment Highlights:

• Extended the facility maturity from September 2023 to April 2026
• Increased the borrowing base by 14% from $175 million to $200 million
• Rebalanced allocations among six lenders in the syndicate
• Relaxed minimum hedging requirements to allow for more discretionary hedging decisions when the Company is less levered

As of April 29, 2022, the Company had $63MM drawn on the credit facility with $137MM of availability.

The amended Credit Facility now includes hedging requirements that are based on both facility utilization as well as the Company's leverage ratio, reducing minimum thresholds required when utilization and leverage are reduced.  At the current level, the Company is required to have in place commodity hedges covering 25% of forecasted PDP production volumes for a period of 24 months forward, down from a requirement of 50% of forecasted PDP volumes under the prior Credit Facility agreement.

The management team and board of directors of Riley Permian extend their gratitude to the banking syndicate partners for their continued support.

About Riley Exploration Permian, Inc.

Riley Permian is a growth-oriented, independent oil and natural gas company focused on the acquisition, exploration, development and production of oil, natural gas, and natural gas liquids. For more information please visit www.rileypermian.com.

Investor Contact:

Rick D' Angelo
405-438-0126
IR@rileypermian.com

 

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SOURCE Riley Exploration Permian, Inc.

FAQ

What did Riley Exploration Permian announce on May 2, 2022?

Riley Exploration Permian announced an amendment to its credit facility, extending its maturity and increasing the borrowing base.

What is the new borrowing base for Riley Exploration Permian's credit facility?

The borrowing base increased by 14% from $175 million to $200 million.

How long was the credit facility extended for Riley Exploration Permian?

The credit facility was extended from September 2023 to April 2026.

What are the new hedging requirements for Riley Exploration Permian?

The new hedging requirements cover 25% of forecasted PDP production volumes for 24 months, reduced from 50%.

How much of the credit facility was drawn by Riley Exploration Permian as of April 29, 2022?

As of April 29, 2022, Riley Exploration Permian had $63 million drawn on the credit facility.