EnerCom conference presenter U.S. Energy Corp. (ticker: USEG) and its sole lender, APEG Energy II, L.P., have entered into the 5th Amendment to the company’s credit agreement.
The amendment extends the maturity date through July 30, 2019, and sets forth new covenants.
Amended Credit Facility Details
| Prior Credit Agreement Terms |
New Credit Agreement Terms |
|||||||
| Maturity Date: | July 30, 2017 | July 30, 2019 | ||||||
| Effective Weighted Average Interest Rate: | 7.39% | 8.75% | ||||||
| Outstanding Debt: | $6.0mm | $6.0mm | ||||||
New Covenant Calculations at 3/31/17
| PDP Coverage Ratio: | Greater than 1.2x | |||||||
| PDP PV-101: | $8.4mm | |||||||
| Outstanding Debt: | $6.0mm | |||||||
| PDP Coverage Ratio: | 1.4x | In Compliance | ||||||
| Current Ratio: | Greater than 1.0 to 1.0 | |||||||
| Current Assets | $4.7mm | |||||||
| Current Liabilities subject to calculation2 | $1.2mm | |||||||
| Current Ratio | 3.8 to 1.0 | In Compliance | ||||||
| 1 SEC pricing of $47.61 oil and $2.73 gas was used in calculation 2 Represents the amount derived from new covenant calculation definition |
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Current Hedge Position
| Period | Oil (Bbls/d) | Swap Price ($USD) | ||||
| 2017 Crude Oil Swaps | ||||||
| May 1, 2017 – December 31, 2017 | 300 | $ | 52.40 | |||
USEG’s credit partner, APEG Energy II, L.P., is an entity formed by Angelus Capital to make energy investments. Angelus is a private equity firm headquartered in Austin, TX.
“We expect our growth to be through accretive acquisitions and asset consolidation in the near term,” said David Veltri, U.S. Energy’s president and CEO. “We expect to re-classify the associated debt balance as a long-term liability on our upcoming quarterly financial report.”
“We are pleased to have completed this amendment to our credit agreement and to have Angelus as a strategic partner going forward,” Veltri said.
U.S. Energy Corp. is presenting at EnerCom’s The Oil & Gas Conference® 22
U.S. Energy Corp will be a presenting company at the upcoming EnerCom conference in Denver, Colorado—The Oil & Gas Conference® 22.
The conference is EnerCom’s 22nd Denver-based oil and gas focused investor conference, bringing together publicly traded E&Ps and oilfield service and technology companies with institutional investors. The conference will be at the Denver Downtown Westin Hotel, August 13-17, 2017. To register for The Oil & Gas Conference® 22 please visit the conference website.
A summary of U.S. Energy and its holdings is available here.
