Miller repays $10.5 million debt via liquidation of 2016 oil hedges

By Toni Weeks

San Luis Obispo, Calif., April 29 – Miller Energy Resources, Inc. said it repaid amounts outstanding under its credit facility with the proceeds of a liquidation of 2016 oil hedges, which raised $11.5 million.

According to an 8-K filing with the Securities and Exchange Commission, the company used $10.5 million of the proceeds to repay credit facility debt, and the remainder will be used to pay certain accounts payable.

Following the repayment, about $18.5 million remains outstanding under the credit facility.

The debt repayment is related to Miller’s plans for a capital repositioning. The company has hired Global Hunter to help it execute the plan and is focusing on raising credit-enhancing capital and ensuring adequate liquidity in order to maximize the value of the company’s asset base for all stakeholders.

The company also said it has not made a decision regarding the payment of the next quarterly dividend related to its 10.75% series C cumulative redeemable preferred stock and 10.5% series D fixed-rate/floating-rate cumulative redeemable preferred stock.

Miller Energy is a Knoxville, Tenn.-based oil and natural gas exploration and development company.

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