MIDLAND, Texas–(BUSINESS WIRE)–Clayton Williams Energy, Inc. (NYSE: CWEI) today announced that it has completed the scheduled semiannual borrowing base redetermination of its revolving credit facility and has extended the temporary covenant amendments originally set for expiration in 2016.
Effective November 9, 2015, the borrowing base and aggregate lender commitment under the Company’s revolving credit facility is $450 million, down 10% from the $500 million borrowing base which was established in February 2015. As adjusted for the reduction in borrowing base and lender commitments, funds available to the Company under the revolving credit facility at September 30, 2015 totaled $298.1 million after allowing for outstanding advances and letters of credit.
In addition, certain financial covenants set to expire in 2016 were extended through the fourth quarter of 2017. In February 2015, the revolving credit facility was amended to temporarily limit consolidated senior debt to 2.5 times consolidated EBITDAX and consolidated interest expense to 1.5 times consolidated EBITDAX. Originally, these temporary amendments applied to each quarterly period from January 1, 2015 through June 30, 2016. Effective November 9, 2015, these temporary financial covenants were extended through the fourth quarter of 2017.
Clayton Williams Energy, Inc. is an independent energy company located in Midland, Texas.
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical or current facts, that address activities, events, outcomes and other matters that we plan, expect, intend, assume, believe, budget, predict, forecast, project, estimate or anticipate (and other similar expressions) will, should or may occur in the future are forward-looking statements. These forward-looking statements are based on management’s current belief, based on currently available information, as to the outcome and timing of future events. The Company cautions that its future oil and natural gas production, revenues, cash flows, liquidity, plans for future operations, expenses, outlook for oil and natural gas prices, timing of capital expenditures and other forward-looking statements are subject to all of the risks and uncertainties, many of which are beyond our control, incident to the exploration for and development, production and marketing of oil and gas.
These risks include, but are not limited to, the possibility of unsuccessful exploration and development drilling activities, our ability to replace and sustain production, commodity price volatility, domestic and worldwide economic conditions, the availability of capital on economic terms to fund our capital expenditures and acquisitions, our level of indebtedness, the impact of the current economic environment on our business operations, financial condition and ability to raise capital, declines in the value of our oil and gas properties resulting in a decrease in our borrowing base under our credit facility and impairments, the ability of financial counterparties to perform or fulfill their obligations under existing agreements, the uncertainty inherent in estimating proved oil and gas reserves and in projecting future rates of production and timing of development expenditures, drilling and other operating risks, lack of availability of goods and services, regulatory and environmental risks associated with drilling and production activities, the adverse effects of changes in applicable tax, environmental and other regulatory legislation, and other risks and uncertainties are described in the Company’s filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements.