Gulfport Energy Corporation Announces Amended and Restated Credit Facility
October 14 2021 - 4:10PM
Business Wire
Gulfport Energy Corporation (NYSE: GPOR) (“Gulfport” or the
“Company”) today announced that it has entered into the Third
Amended and Restated Credit Agreement (“Amendment”), which amends
and refinances the Company’s Credit Agreement, dated as of May 17,
2021 (“Exit Facility”).
"Gulfport continues to make progress in strengthening its
financial position, today announcing the successful amendment to
its exit facility. The amended facility increases our liquidity by
more than $160 million, which is expected to provide us with the
necessary financial flexibility to continue to execute our business
plan and provides additional clarity around our ability to return
capital to shareholders. We appreciate our banks working closely
with us in connection with this amendment and for their continued
support to our organization,” commented Tim Cutt, CEO of
Gulfport.
The amendment announced today provides for, among other
things:
- an increase in aggregate elected lender commitments from $580
million to $700 million;
- a repayment of the term loan under the Exit Facility
- a change to the leverage ratio covenant to permit a maximum
ratio of net funded debt to EBITDAX of no more than 3.25 to 1.00,
as of the last day of each fiscal quarter of the Company;
- the ability to make certain restricted payments from free cash
flow, subject to certain leverage and elected commitment
availability conditions;
- the elimination of the $40 million availability blocker that
applied in advance of certain successful midstream
resolutions;
- a revision of the applicable rate for all borrowings under the
credit agreement, which reduces the 100-basis point LIBOR floor to
zero and reduces the price grid by 25 basis points at each level of
utilization; and
- the ability to repurchase outstanding senior notes of up to
$150 million, subject to certain leverage and elected commitment
availability conditions.
The Amendment also provides for semiannual redeterminations of
the borrowing base around November 1 and May 1 of each year,
beginning May 1, 2022, and extends the maturity date to October
2025 from May 2024.
The Amendment was provided by a syndicate of 14 financial
institutions, including JPMorgan Chase Bank, N.A., as
administrative agent.
Financial Position and Liquidity
As of September 30, 2021, Gulfport had approximately $4 million
of cash and cash equivalents, $200 million of borrowings under its
Exit Facility, $115 million of letters of credit outstanding and
$550 million of outstanding 2026 senior notes.
Pro forma for the Amendment, Gulfport’s liquidity at September
30, 2021, totaled approximately $389 million, comprised of the $4
million of cash and cash equivalents and approximately $385 million
of available borrowing capacity under its new revolving credit
facility.
About Gulfport
Gulfport is an independent natural gas-weighted exploration and
production company focused on the exploration, acquisition and
production of natural gas, crude oil and NGL in the United States
with primary focus in the Appalachia and Anadarko basins. Our
principal properties are located in Eastern Ohio targeting the
Utica formation and in central Oklahoma targeting the SCOOP
Woodford and SCOOP Springer formations.
Forward Looking Statements
This press release includes “forward-looking statements” for
purposes of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934. Forward-looking statements are statements other than
statements of historical fact. They include statements regarding
Gulfport’s current expectations, management's outlook guidance or
forecasts of future events, projected cash flow and liquidity, its
ability to enhance cash flow and financial flexibility, future
production and commodity mix, plans and objectives for future
operations, the ability of our employees, portfolio strength and
operational leadership to create long-term value, the rejection of
certain midstream contracts and the assumptions on which such
statements are based. Gulfport believes the expectations and
forecasts reflected in the forward-looking statements are
reasonable, Gulfport can give no assurance they will prove to have
been correct. They can be affected by inaccurate or changed
assumptions or by known or unknown risks and uncertainties.
Important risks, assumptions and other important factors that could
cause future results to differ materially from those expressed in
the forward-looking statements are described under "Risk Factors"
in Item 1A of Gulfport’s annual report on Form 10-K for the year
ended December 31, 2020 and any updates to those factors set forth
in Gulfport's subsequent quarterly reports on Form 10-Q or current
reports on Form 8-K (available at
https://ir.gulfportenergy.com/all-sec-filings). Gulfport undertakes
no obligation to release publicly any revisions to any
forward-looking statements, to report events or to report the
occurrence of unanticipated events.
Investors should note that Gulfport announces financial
information in SEC filings, press releases and public conference
calls. Gulfport may use the Investors section of its website
(gulfportenergy.com) to communicate with investors. It is possible
that the financial and other information posted there could be
deemed to be material information. The information on Gulfport’s
website is not part of this filing.
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version on businesswire.com: https://www.businesswire.com/news/home/20211014006049/en/
Investor Contact: Jessica Antle – Director, Investor
Relations jantle@gulfportenergy.com 405-252-4550
Thomas Renouard – Senior Analyst, Investor Relations
trenouard@gulfportenergy.com 405-252-4550
Media Contact Reevemark Hugh Burns / Paul Caminiti /
Nicholas Leasure 212-433-4600
Gulfport Energy (NYSE:GPOR)
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