Dan,
I am having a hard time reconciling BCEI's Q2 liquidity; hopefully you can help.
Q1 Liquidity was $646MM; Q2 Liquidity was $498MM; NET CHANGE <$148MM>
Q2 CapEx was $164MM and Cash Flow was about $55MM.
Therefore - $646MM - $164MM + $55MM = $537MM.
Why the discrepancy in Liquidity? Thanks a bunch.
BCEI Liquidity Question - For Dan
Re: BCEI Liquidity Question - For Dan
Sorry Dan, I figured it out...the revolver base was redetermined at $550mm, down from $600mm...
What are your thoughts of a further downward redetermination? Any idea when the next date would likely be?
What are your thoughts of a further downward redetermination? Any idea when the next date would likely be?
Re: BCEI Liquidity Question - For Dan
The Company’s senior secured revolving Credit Agreement, dated March 29, 2011, as amended (the “revolving
credit facility”), was further amended on May 13, 2015 (the “2015 Amendment”) to decrease the borrowing base from
$600 million to $550 million with a total credit facility size of $1 billion remaining unchanged. The Company elected to
limit bank commitments at $500 million while reserving the option to access, at the Company’s request, the full $550
million borrowing base. The borrowing base is redetermined semiannually on May 15 and November 15.
The revolving
credit facility is collateralized by substantially all of the Company’s assets and matures on September 15, 2017. As of
June 30, 2015, the Company had $43 million outstanding under the revolving credit facility with an available borrowing
capacity of $483 million, if the Company elected to take advantage of the entire borrowing base, after reduction for the
outstanding letter of credit of $24 million. As of December 31, 2014, the Company had $33 million outstanding under the
revolving credit facility with an available borrowing capacity of $543 million, if the Company elected to take advantage
of the entire $600 million borrowing base available at that date, after reduction for the outstanding letter of credit of $24
million.
The revolving credit facility restricts, among other items, certain dividend payments, additional indebtedness,
asset sales, loans, investments and mergers. The revolving credit facility also contains certain financial covenants, which
require the maintenance of certain financial and leverage ratios, as defined by the revolving credit facility. The 2015
Amendment (i) permanently removed the maximum total debt to trailing twelve month debt to earnings before
interest, income taxes, depreciation, depletion, and amortization, exploration expense and other non-cash charges
(“EBITDAX”) covenant of 4.00 to 1.00 and (ii) introduced both a maximum senior secured debt (defined as borrowings
under the revolving credit facility, balances drawn under letters of credit, and any outstanding second lien debt) to
trailing twelve month EBITDAX covenant of 2.50 to 1.00 and a minimum trailing twelve month interest to trailing twelve
month EBITDAX coverage covenant of 2.50 to 1.00. The revolving credit facility also contains a minimum current ratio
covenant of 1.00 to 1.00. The Company was in compliance with all financial and non-financial covenants as of June
30, 2015, and through the filing date of this report.
credit facility”), was further amended on May 13, 2015 (the “2015 Amendment”) to decrease the borrowing base from
$600 million to $550 million with a total credit facility size of $1 billion remaining unchanged. The Company elected to
limit bank commitments at $500 million while reserving the option to access, at the Company’s request, the full $550
million borrowing base. The borrowing base is redetermined semiannually on May 15 and November 15.
The revolving
credit facility is collateralized by substantially all of the Company’s assets and matures on September 15, 2017. As of
June 30, 2015, the Company had $43 million outstanding under the revolving credit facility with an available borrowing
capacity of $483 million, if the Company elected to take advantage of the entire borrowing base, after reduction for the
outstanding letter of credit of $24 million. As of December 31, 2014, the Company had $33 million outstanding under the
revolving credit facility with an available borrowing capacity of $543 million, if the Company elected to take advantage
of the entire $600 million borrowing base available at that date, after reduction for the outstanding letter of credit of $24
million.
The revolving credit facility restricts, among other items, certain dividend payments, additional indebtedness,
asset sales, loans, investments and mergers. The revolving credit facility also contains certain financial covenants, which
require the maintenance of certain financial and leverage ratios, as defined by the revolving credit facility. The 2015
Amendment (i) permanently removed the maximum total debt to trailing twelve month debt to earnings before
interest, income taxes, depreciation, depletion, and amortization, exploration expense and other non-cash charges
(“EBITDAX”) covenant of 4.00 to 1.00 and (ii) introduced both a maximum senior secured debt (defined as borrowings
under the revolving credit facility, balances drawn under letters of credit, and any outstanding second lien debt) to
trailing twelve month EBITDAX covenant of 2.50 to 1.00 and a minimum trailing twelve month interest to trailing twelve
month EBITDAX coverage covenant of 2.50 to 1.00. The revolving credit facility also contains a minimum current ratio
covenant of 1.00 to 1.00. The Company was in compliance with all financial and non-financial covenants as of June
30, 2015, and through the filing date of this report.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group