Midland Basin E&P HighPeak Energy Inc. said June 12 that it will offer $575 million in senior notes with the intent to repay an outstanding debt of $475 million and reduce other borrowings on its credit revolver.
The $475 million HighPeak intends to retire consists of senior notes due in February 2024 at 10% and November 2024 at 10.625%.
The $575 million offering, a private placement, would raise money not due until 2028. The notes will not be offered under the Securities Act but will be available to “qualified institutional buyers” under Rule 144A and Regulation S of the act.
In connection with the pricing of the offering, HighPeak intends to enter into an amended credit agreement with Wells Fargo Bank, National Association, according to Securities and Exchange Commission filings. The amendment will, among other changes, increase its elected commitments to $660 million and increase the company’s borrowing base to $750 million. The borrowing base maturity date will also be extended to July 1, 2025.
Recommended Reading
As ONEOK Digests Magellan, Sets Stage for More NGL Growth in 2024
2024-02-28 - ONEOK is continuing the integration of its newly acquired Magellan assets in 2024 as the company keeps an eye out for M&A opportunities and awaits regulatory approvals for certain projects.
Dallas Fed Energy Survey: Permian Basin Breakeven Costs Moving Up
2024-03-28 - Breakeven costs in America’s hottest oil play continue to rise, but crude producers are still making money, according to the first-quarter Dallas Fed Energy Survey. The situation is more dire for natural gas producers.
EIA: E&P Dealmaking Activity Soars to $234 Billion in ‘23
2024-03-19 - Oil and gas E&Ps spent a collective $234 billion on corporate M&A and asset acquisitions in 2023, the most in more than a decade, the U.S. Energy Information Administration reported.
Exxon Shale Exec Details Plans for Pioneer’s Acreage, 4-mile Laterals
2024-05-03 - Exxon Mobil plans to drill longer, more capital efficient wells in the Midland Basin after a major boost from the $60 billion Pioneer Natural Resources acquisition. Data shows that Exxon is a leading operator drilling 4-mile laterals in the Permian’s Delaware Basin.
Ohio Oil, Appalachia Gas Plays Ripe for Consolidation
2024-04-09 - With buyers “starved” for top-tier natural gas assets, Appalachia could become a dealmaking hotspot in the coming years. Operators, analysts and investors are also closely watching what comes out of the ground in the Ohio Utica oil fairway.