Midland-focused Approach Resources Inc. (NASDAQ: AREX) said Nov. 9 the company is positioning itself to resume growth following the reaffirmation of its $325 million borrowing base.
As a result of the fall 2016 seminannual redetermination of its revolver, the company's bank group unanimously reaffirmed the base. In addition, the existing terms or conditions of the credit agreement remained untouched.
As of Nov. 8, Approach had $275 million outstanding under its revolver, giving it liquidity of $52.2 million.
"The reaffirmed borrowing base, along with our recently-announced debt exchange, will position the company to resume production growth while continuing to operate within cash flow," Sergei Krylov, Approach's executive vice president and CFO, said in a statement.
Further, the reaffirmation is a "validation of the continued productivity improvements, cost reduction initiatives and recapitalization transactions that have been the focus of the entire Approach team," he added.
Approach has about 138,000 gross acres in the Midland Basin, according to its website. The company is based in Fort Worth, Texas.
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