Resolute Energy Corporation and Certain of its Subsidiaries Enter into an Amendment to Secured Term Loan Agreement and Increased Facility Activation Notice-Incremental Term Loans with Bank of Montreal
May 19 15
On May 18, 2015, Resolute Energy Corporation and certain of its subsidiaries, as guarantors, entered into an Amendment to Secured Term Loan Agreement and Increased Facility Activation Notice-Incremental Term Loans with Bank of Montreal, as administrative agent, and the lenders party thereto, pursuant to which the Company borrowed an additional $50 million of second lien term debt (the “Incremental Term Loans”) under its Secured Term Loan Agreement dated December 30, 2014 (the “Secured Loan Agreement”). Funding of the Incremental Term Loans occurred on May 19, 2015 (the “Closing”). The Incremental Term Loans have the same terms as the existing second lien borrowings under the Secured Loan Agreement, adjusted for the date of the Closing. The $50 million of Incremental Term Loans was placed with the same lenders that participated in the initial $150 million second lien closing in December 2014. The Incremental Term Loans are provided for in the Twelfth Amendment to the Company’s Second Amended and Restated Credit Agreement, dated as of March 30, 2010, as amended (the “Credit Facility”). In connection with the Closing, the Company received all required consents for the Incremental Term Loans from Wells Fargo Bank, National Association, as administrative agent under the Credit Facility. Net proceeds from the Incremental Term Loans, estimated at approximately $46 million after payment of transaction-related fees, expenses and discounts, were used to repay amounts outstanding under the Credit Facility. Borrowings under the Secured Term Loan Facility will generally bear interest at adjusted LIBOR plus 10%, with a 1% LIBOR floor. The Company’s borrowing base under the Credit Facility was automatically reduced by $10 million, to $260 million, effective upon the Closing.
Resolute Energy Reports Unaudited Consolidated Earnings Results for the First Quarter Ended March 31, 2015; Provides Capital Expenditure Guidance for the Year 2015; Announces Impairment Charges for the First Quarter Ended March 31, 2015
May 11 15
Resolute Energy reported unaudited consolidated earnings results for the first quarter ended March 31, 2015. During the quarter, the company reported a net loss of $208.222 million or $2.80 per basic and diluted share, on revenue of $41.133 million. This compares to a net loss of $3.548 million or $0.05 per basic and diluted share, on revenue of $90.878 million in the first quarter of 2014. The company generated $34.8 million of adjusted EBITDA, or $28.65 per Boe, a 15% decrease from the prior year period during which the company generated $41.1 million of adjusted EBITDA, or $36.27 per Boe. The decrease in adjusted EBITDA resulted primarily from decreased commodity pricing ($33.86 per Boe in 2015 compared to $80.15 per Boe in 2014) offset by commodity derivative settlement gains, cost reductions in lease operating expense and increased production. Resolute incurred oil and gas related capital expenditures of approximately $22.1 million, net of divestitures of $0.5 million and excluding capitalized interest of $4.5 million. These capital investments were directed principally toward completion projects in the Permian Basin and the company's ongoing tertiary recovery projects in Aneth Field. Loss before income taxes was $230,576 million against $4,654 million of prior year period. Loss from operations was $244.336 million against income from operations of $11.075 million of prior year period. Capital spending for the quarter was $22.1 million, reflecting costs for the three horizontal completions in Reeves County.
Capital spending expects to be $45 million to $50 million budget for the year 2015. The company is on track to generate free cash flow in 2015 that it expects to use to reduce its bank debt.
Production for the quarter ended March 31, 2015, increased 7% to 1,215 MBoe, or 13,500 Boe per day, as compared to 1,134 MBoe, or 12,598 Boe per day, during the first quarter of 2014. First quarter 2015 production from the company's Aneth Field properties increased 4% to 6,395 Boe per day as compared to the 6,169 Boe per day produced in the first quarter of 2014, and remained consistent with the 6,395 Boe per day produced during the fourth quarter of 2014. The increase from the comparable prior year period is attributable to increased response from tertiary recovery techniques. Production from the company's Permian Basin properties increased 17% to 5,380 Boe per day, as compared to the 4,589 Boe per day produced in the first quarter of 2014, and increased seven % from the 5,039 Boe per day produced during the fourth quarter of 2014. The increase from the comparable prior year period was attributable to the company's drilling and completion activity in the area. Wyoming production during the first quarter decreased 4% to 1,725 Boe per day from the 1,795 Boe per day produced in the first quarter of 2014, and decreased 10% from the 1,907 Boe per day produced during fourth quarter of 2014. The decrease in production from the prior year periods is the result of natural production declines, unplanned well work and temporary shut-downs due to plant maintenance by the third party gatherer and processor of gas production. Pro forma for the sale of the North Dakota properties, production for the quarter ended March 31, 2015, increased 8%, to 1,215 MBoe, or 13,500 Boe per day, as compared to 1,130 MBoe, or 12,553 Boe per day, during the prior year comparable period.
The company announced impairment of proved oil and gas properties of $220,000,000 for the first quarter ended March 31, 2015.
Resolute Energy Corporation to Report Q1, 2015 Results on May 11, 2015
May 9 15
Resolute Energy Corporation announced that they will report Q1, 2015 results After-Market on May 11, 2015