Vine Energy Inc. Announces Amendment to Second Lien Term Loan

Rhea-AI Summary

Vine Energy Inc. (NYSE: VEI) announced an amendment to its subsidiary's second lien term loan agreement, reducing the hedging requirements for future natural gas production. The new terms mandate that only 70% of expected production from proved developed producing reserves be hedged for a 24-month period, down from 70% of total expected production. CEO Eric Marsh noted that this change allows for better alignment with the company's capital structure, enhancing operational flexibility post-IPO.

Positive

• Reduced hedging requirements from 70% of total expected production to 70% of expected production from proved developed producing reserves.
• Enhances operational flexibility and aligns credit agreements with the company's improved capital structure post-IPO.

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• None.

Vine Energy Inc. (NYSE: VEI) announced that its subsidiary, Vine Energy Holdings LLC, has amended its second lien term loan agreement to effectively reduce the amount of future natural gas production that is required to be subject to hedging. Specifically, for the 24-month period following the original closing date, and for the 24-month period following the delivery of either an annual or mid-year reserve report, 70% of expected production from proved developed producing reserves is now required to be hedged. Previously, 70% of total expected production was required to be hedged.

Commenting on the amendment to the Company’s second lien term loan agreement, Chairman, President & CEO Eric Marsh stated, “This amendment meaningfully reduces the required hedging under our credit agreements and aligns the requirements of our reserve-based lending facility with our second lien term loan. While the use of derivatives to manage commodity price exposure will remain an important part of our strategy, we now have greater flexibility to manage our business in better alignment with our improved capital structure post our initial public offering this past March. We would like to thank our second lien term loan lenders for working with us on this amendment.”

About Vine Energy Inc.

Vine Energy Inc., based in Plano, Texas, is an energy company focused on the development of natural gas properties in the stacked Haynesville and Mid-Bossier shale plays in the Haynesville Basin of Northwest Louisiana. The Company is listed on the New York Stock Exchange under the symbol “VEI”.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210701005115/en/

FAQ

What recent amendment did Vine Energy (VEI) make to its loan agreement?

Vine Energy amended its second lien term loan agreement to reduce the hedging requirement from 70% of total expected production to 70% of expected production from proved developed producing reserves.

How does the loan amendment affect Vine Energy's business strategy?

The amendment provides greater flexibility to manage business operations and aligns the requirements of their reserve-based lending facility with the second lien term loan.

When was the loan agreement amendment announced by Vine Energy?

The loan amendment was announced in a press release by Vine Energy, detailing the changes to their hedging commitments.

What is the significance of the loan amendment for shareholders of VEI?

The amendment signifies a more favorable financial position and operational flexibility for Vine Energy, potentially benefiting shareholders by improving stability and reducing risks associated with hedging.