Diversified Gas & Oil PLC Borrowing Base Reaffirmation (0935G)
November 23 2020 - 01:00AM
UK Regulatory
TIDMDGOC
RNS Number : 0935G
Diversified Gas & Oil PLC
23 November 2020
23 November 2020
Diversified Gas & Oil PLC
("DGO" or the "Company")
Borrowing Base Reaffirmation
Diversified Gas & Oil PLC (LSE: DGOC), the U.S. based owner
and operator of natural gas, natural gas liquids, oil wells and
midstream assets, is pleased to announce that the Company's bank
lending group, led by KeyBank National Association (the "Bank
Group"), has completed the semi-annual redetermination of the
Company's senior secured credit facility (the "Credit Facility")
and reaffirmed the existing $425 million borrowing base with no
changes to pricing, covenants or other material terms.
Following the redetermination, DGO's liquidity(a) exceeds $220
million, comprised of cash on hand and availability under the
Credit Facility. The Company's current Net Debt ($730 million) to
Adjusted EBITDA ratio approximates 2.2x(b) , lower than its stated
internal threshold and well below debt covenant threshold.
Rusty Hutson, Jr., CEO of the Company commented,
"We are pleased that our strong production profile, robust
hedging positions and long-life proved developed producing reserves
support a unanimous reaffirmation of our borrowing base.
Recognising the challenging times in which we operate and against a
backdrop of many borrowing base reductions, I would like to thank
our bank group for their continued support of our differentiated
business strategy. Evidenced by two consecutive dividend increases
representing more than a 14% increase per share since the global
pandemic began, our strategy remains highly resilient in the
current commodity price environment. As we round out an exceptional
year for DGO, we look forward to carrying our positive momentum
into 2021."
The Company's next scheduled redetermination is in the second
quarter of 2021.
Footnotes:
a. As reported in the 29 October 2020 Trading Update and based
on 30 September 2020 revolving credit facility balance and
inclusive of cash on the balance sheet, excluding letters of
credit.
b. Net debt of $730 million assumes total debt less cash and
restricted cash. Adjusted EBITDA of $327 million assumes trailing
twelve month hedged EBITDA margin as at 30 September 2020 and
average hedged revenue per unit applied to annualised 3Q20 total
production to adjust for timing of the Carbon and EQT
acquisitions.
.
Diversified Gas & Oil PLC +1 205 408 0909
Teresa Odom, Vice President, Investor
Relations
www.dgoc.com
ir@dgoc.com
Buchanan +44 20 7466 5000
Financial Public Relations
Ben Romney
Chris Judd
Kelsey Traynor
James Husband
dgo@buchanan.uk.com
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END
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