Clayton Williams Energy Announces Borrowing Base Redetermination and Covenants Extension
Clayton Williams Energy, Inc. (NYSE: CWEI) today announced
that it has completed the scheduled semiannual borrowing base
redetermination of its revolving credit facility and has extended the
temporary covenant amendments originally set for expiration in 2016.
Effective November 9, 2015, the borrowing base and aggregate lender
commitment under the Company’s revolving credit facility is $450
million, down 10% from the $500 million borrowing base which was
established in February 2015. As adjusted for the reduction in borrowing
base and lender commitments, funds available to the Company under the
revolving credit facility at September 30, 2015 totaled $298.1 million
after allowing for outstanding advances and letters of credit.
In addition, certain financial covenants set to expire in 2016 were
extended through the fourth quarter of 2017. In February 2015, the
revolving credit facility was amended to temporarily limit consolidated
senior debt to 2.5 times consolidated EBITDAX and consolidated interest
expense to 1.5 times consolidated EBITDAX. Originally, these temporary
amendments applied to each quarterly period from January 1, 2015 through
June 30, 2016. Effective November 9, 2015, these temporary financial
covenants were extended through the fourth quarter of 2017.
Clayton Williams Energy, Inc. is an independent energy company located
in Midland, Texas.
This release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. All statements, other than statements
of historical or current facts, that address activities, events,
outcomes and other matters that we plan, expect, intend, assume,
believe, budget, predict, forecast, project, estimate or anticipate (and
other similar expressions) will, should or may occur in the future are
forward-looking statements. These forward-looking statements are based
on management’s current belief, based on currently available
information, as to the outcome and timing of future events. The Company
cautions that its future oil and natural gas production, revenues, cash
flows, liquidity, plans for future operations, expenses, outlook for oil
and natural gas prices, timing of capital expenditures and other
forward-looking statements are subject to all of the risks and
uncertainties, many of which are beyond our control, incident to the
exploration for and development, production and marketing of oil and gas.
These risks include, but are not limited to, the possibility of
unsuccessful exploration and development drilling activities, our
ability to replace and sustain production, commodity price volatility,
domestic and worldwide economic conditions, the availability of capital
on economic terms to fund our capital expenditures and acquisitions, our
level of indebtedness, the impact of the current economic environment on
our business operations, financial condition and ability to raise
capital, declines in the value of our oil and gas properties resulting
in a decrease in our borrowing base under our credit facility and
impairments, the ability of financial counterparties to perform or
fulfill their obligations under existing agreements, the uncertainty
inherent in estimating proved oil and gas reserves and in projecting
future rates of production and timing of development expenditures,
drilling and other operating risks, lack of availability of goods and
services, regulatory and environmental risks associated with drilling
and production activities, the adverse effects of changes in applicable
tax, environmental and other regulatory legislation, and other risks and
uncertainties are described in the Company's filings with the Securities
and Exchange Commission. The Company undertakes no obligation to
publicly update or revise any forward-looking statements.
View source version on businesswire.com: http://www.businesswire.com/news/home/20151111006562/en/
Copyright Business Wire 2015