THE CITY OF OKLAHOMA – (COMMERCIAL THREAD) – Gulfport Energy Corporation (NYSE: GPOR) (“Gulfport” or the “Company”) announced today that it has entered into the Third Amended and Restated Credit Agreement (“Amendment”), which amends and refinances the Company’s credit agreement dated May 17, 2021 (“Exit Facility”).
“Gulfport continues to make progress in strengthening its financial position, today announcing the successful modification of its exit facility. The amended facility increases our liquidity by more than $ 160 million, which should provide us with the financial flexibility necessary to continue to execute our business plan and provide further clarification on our ability to return capital to shareholders. We appreciate the close collaboration of our banks with us as part of this amendment and for their continued support to our organization, ”commented Tim Cutt, CEO of Gulfport.
The amendment announced today provides, among other things:
an increase in the total commitments of elected lenders from $ 580 million to $ 700 million;
repayment of the term loan under the exit facility
a modification of the leverage ratio covenant to allow a maximum ratio of funded net debt to EBITDAX not exceeding 3.25 to 1.00, on the last day of each fiscal quarter of the Company;
the ability to make certain restricted payments from free cash flow, subject to certain conditions of availability of leverage and the chosen commitment;
the elimination of the $ 40 million uptime blocker that applied prior to some successful interim resolutions;
a revision of the rate applicable to all borrowings under the credit agreement, which brings the LIBOR floor of 100 basis points to zero and reduces the fee schedule by 25 basis points at each level of use; and
the ability to repurchase senior notes outstanding up to $ 150 million, subject to certain conditions of availability of commitment and leverage.
The amendment also provides for semi-annual reviews of the borrowing base around November 1 and May 1 of each year, starting May 1, 2022, and extends the maturity date to October 2025 from May 2024.
The amendment was provided by a union of 14 financial institutions, including JPMorgan Chase Bank, NA, as administrative agent.
Financial situation and liquidity
As at September 30, 2021, Gulfport had approximately $ 4 million in cash and cash equivalents, $ 200 million in borrowings under its exit facility, $ 115 million in letters of credit outstanding and $ 550 million in 2026 senior banknotes in circulation.
Pro forma for the Amendment, Gulfport’s liquidity as of September 30, 2021 was approximately $ 389 million, including $ 4 million in cash and cash equivalents and approximately $ 385 million in available borrowing capacity in the under its new revolving credit facility.
Gulfport is an independent natural gas weighted exploration and production company focused on the exploration, acquisition and production of natural gas, crude oil, and NGLs in the United States, primarily in the Appalachian and Eastern Basins. ‘Anadarko. Our primary properties are located in Eastern Ohio targeting Utica training and in central Oklahoma targeting SCOOP Woodford and SCOOP Springer training.
This press release includes “forward-looking statements” for the purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are statements other than statements of historical fact. They include statements regarding Gulfport’s current expectations, management’s outlook or forecast of future events, projected cash flow and liquidity, its ability to improve cash flow and financial flexibility, future production and the composition of the commodities, the plans and objectives for future operations, the ability of our employees, the strength of the portfolio and operational leadership to create long-term value, the rejection of certain interim contracts and the assumptions on which these statements are well founded. Gulfport believes that the expectations and forecasts reflected in the forward-looking statements are reasonable, Gulfport cannot guarantee that they will prove to be correct. They may be affected by inaccurate or modified assumptions or by known or unknown risks and uncertainties. The risks, assumptions and other significant factors that could cause future results to differ materially from those expressed in forward-looking statements are described under “Risk Factors” in Section 1A of Gulfport’s Annual Report on Form 10-K for the year ended December 31. , 2020 and any updates to those factors set out in subsequent Gulfport Quarterly Reports on Form 10-Q or current reports on Form 8-K (available at https://ir.gulfportenergy.com/all-sec -filings). Gulfport does not undertake to publicly publish revisions to forward-looking statements, to report events or to report the occurrence of unforeseen events.
Investors should note that Gulfport announces financial information in SEC filings, press releases and public conference calls. Gulfport may use the Investors section of its website (gulfportenergy.com) to communicate with investors. Financial and other information displayed there may be considered material information. Information on the Gulfport website is not part of this repository.