Earthstone Energy revolver borrowing base increased to $185 million

By Angela McDaniels

Tacoma, Wash., Dec. 4 – Earthstone Energy, Inc. said the borrowing base of subsidiary Earthstone Energy Holdings, LLC’s senior secured revolving credit facility was increased to $185 million from $150 million on Friday.

The $185 million borrowing base will not be reduced upon closing of the parent company’s agreement to sell its Bakken assets, according to an 8-K filing with the Securities and Exchange Commission.

The revolver was also amended to

• Eliminate the limitation on the borrower to request a loan when the consolidated cash held by the parent company exceeds a certain threshold;

• Reduce the frequency of reporting of hedging agreements by the parent company to the lenders;

• Allow for the sale or transfer of any oil and gas property or any interest in any oil and gas property in excess of 5% of the value of the parent company’s proved developed producing reserves, subject to a redetermination of the borrowing base; and

• Allow the parent company to enter into hedging agreements pertaining to oil and gas properties to be acquired in a proposed acquisition and, if terminated, liquidated within 10 business days.

BOKF, NA is the agent and lead arranger. Wells Fargo Bank, NA is the syndication agent.

Earthstone is an oil and gas company based in The Woodlands, Texas.

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