QEP Resources Announces Amendment to Credit Agreement
June 04 2020 - 4:15PM
QEP Resources, Inc. (NYSE:QEP) (QEP or the Company) announced today
that it has entered into an amendment to its existing credit
agreement with Wells Fargo Bank, National Association, and other
lenders (the Credit Agreement).
"The amended credit facility increases our
liquidity by more than $500 million and is expected to provide us
with the necessary financial flexibility to execute our ongoing
business plan. We believe that the amendment strengthens our
financial position as we navigate through this challenging
environment. We appreciate our banks working closely with us in
connection with this amendment and their continued support to our
organization, especially given the current market environment,"
commented Tim Cutt, President & CEO of QEP.
The amendment announced today provides for, among
other things:
- a change to the leverage ratio covenant to permit a maximum
ratio of net priority guaranteed debt to consolidated EBITDAX of
2.50 to 1.00 as of the last day of each fiscal quarter of the
Company;
- a change of the present value debt ratio covenant to require a
minimum present value to net priority guaranteed debt ratio of at
least 1.50 to 1.00 at all times;
- the ability to repurchase outstanding senior notes with up to
$500 million of loan proceeds and certain other amounts;
- the ability to issue subsidiary guarantees of up to $500
million of unsecured debt, with such guarantees being subordinated
to the obligations under the Credit Agreement;
- a reduction in aggregate commitments from $1.25 billion to $850
million;
- the requirement that the Company’s material subsidiaries
guarantee the obligations under the Credit Agreement and certain
swap obligations and bank product obligations;
- the revision of the applicable rate for all borrowings under
the Credit Agreement to be based on the utilization under the
Credit Agreement rather than the Company’s leverage ratio; and
- amendments of certain of the negative covenants and other
provisions of the Credit Agreement, as more specifically set forth
in the amendment.
Except as amended by the amendment, the remaining
terms of the existing Credit Agreement remain in full force and
effect. Additional detail is available in our Current Report on
Form 8-K filed with the Securities and Exchange Commission.
About QEP Resources, Inc.
QEP Resources, Inc. (NYSE: QEP) is an
independent crude oil and natural gas exploration and production
company focused in two regions of the United States: the
Southern Region (primarily in Texas) and the Northern Region
(primarily in North Dakota). For more information, visit QEP's
website at: www.qepres.com.
Forward-Looking Statements
This release includes forward-looking statements
within the meaning of Section 27(a) of the Securities Act of 1933,
as amended, and Section 21(e) of the Securities Exchange Act of
1934, as amended. Forward-looking statements can be identified by
words such as “anticipates,” “believes,” “forecasts,” “plans,”
“estimates,” “expects,” “should,” “will” or other similar
expressions. Such statements are based on management’s current
expectations, estimates and projections, which are subject to a
wide range of uncertainties and business risks. These
forward-looking statements include statements regarding our
financial flexibility to execute our ongoing business plan. Actual
results may differ materially from those included in the
forward-looking statements due to a number of factors, including,
but not limited to: changes in oil, gas and NGL prices; liquidity
constraints, including those resulting from the cost or
unavailability of financing due to debt and equity capital and
credit market conditions, changes in QEP’s credit rating, QEP’s
compliance with loan covenants, the increasing credit pressure on
QEP’s industry or demands for cash collateral by counterparties to
derivative and other contracts; market conditions; global
geopolitical and macroeconomic factors; the activities of
the Organization of Petroleum Exporting Countries and other
oil producing countries such as Russia; general economic
conditions, including interest rates; changes in local, regional,
national and global demand for natural oil, gas and NGL; impact of
new laws and regulations, including the use of hydraulic fracture
stimulation; impact of U.S. dollar exchange rates on oil, gas and
NGL prices; elimination of federal income tax deductions for oil
and gas exploration and development; guidance for implementation of
the Tax Cuts and Jobs Act; actual proceeds from asset sales;
actions of activist shareholders; tariffs on products QEP uses in
its operations or on the products QEP sells; drilling results;
shortages of oilfield equipment, services and personnel; the
availability of storage and refining capacity; operating risks such
as unexpected drilling conditions; transportation constraints,
including gas and crude oil pipeline takeaway capacity in the
Permian Basin; weather conditions; changes in maintenance, service
and construction costs; permitting delays; outcome of contingencies
such as legal proceedings; inadequate supplies of water and/or lack
of water disposal sources; credit worthiness of counterparties to
agreements; and the other risks discussed in the Company’s periodic
filings with the Securities and Exchange Commission, including
the Risk Factors section of the Company’s Annual Report on Form
10-K for the year ended December 31, 2019. QEP Resources
undertakes no obligation to publicly correct or update the
forward-looking statements in this news release, in other
documents, or on the website to reflect future events or
circumstances. All such statements are expressly qualified by this
cautionary statement.
Contact |
Investors/Media: |
William I. Kent, IRC |
Director, Investor
Relations |
303-405-6665 |
Qep Resources (NYSE:QEP)
Historical Stock Chart
From Aug 2024 to Sep 2024
Qep Resources (NYSE:QEP)
Historical Stock Chart
From Sep 2023 to Sep 2024