Unit Corp. (UNT) said Oct. 6 it plans to boost its production guidance for the year due to strong well results primarily in its SoHoT, Wilcox and Granite Wash assets.
The Tulsa, Okla.-based company will increase its 2015 year-over-year production growth guidance for its oil and natural gas segment to 6-8% from its previous guidance of 2-4%.
As a result of these efficiencies, the company is reducing its 2015 capex by about $30 million less than originally budgeted.
Unit’s borrowing base was also determined to be $550 million as part of the regular semi-annual redetermination. This remains above its elected commitment level of $500 million, the company said.
Unit has elected to maintain its elected commitment amount at $500 million, which it expects will meet the company’s financing needs during this current commodity cycle.
"We believe the new borrowing base provides us with ample liquidity, and we are confident that we will remain in compliance with all financial covenants of our long-term debt agreements during the course of this cycle,” said Larry Pinkston, Unit's CEO and president, in a statement.
At Sept. 30, Unit had $261.7 million outstanding under its credit agreement. This is a reduction of $18.8 million from the amount outstanding at June 30.
No other terms under the credit agreement changed as a result of the redetermination and the company is fully in compliance with the financial covenants in the credit agreement.
Unit said it anticipates its 2016 capex budget to be within anticipated cash flow.
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