Int Rates on RBLs

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ChuckGeb
Posts: 945
Joined: Thu Nov 21, 2013 2:46 pm

Int Rates on RBLs

Post by ChuckGeb »

I am assuming most RBL’s are floating rate instruments. Prime rate was 3.5% in March of 22 and 7.75% in Feb 23. Stunning move and still rising. I didn’t hear anyone on conference calls discussing. Great that 2022 afforded most FCF to pay down debt including RBL’s. Something to keep an eye on and of course ebitda does’t reflect interest charges. In fact I guess most interest is capitalized anyway and depleted.
More importantly is the coming slow down in the economy that will soon start showing more dramatically as data is looking backwards. Time to hunker down and lever down.
dan_s
Posts: 34463
Joined: Fri Apr 23, 2010 8:22 am

Re: Int Rates on RBLs

Post by dan_s »

"Operating Cash Flow" is net of all cash expenses, including interest expense. I've never been a fan of EBITDA since it is cash flow before interest expense and taxes.
You can find the interest rates each company is being charged on their reserve based loans ("RBL") in their 10-Ks.
Dan Steffens
Energy Prospectus Group
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