Resolute Energy Corp. (NYSE: REN) will withdraw its $550 million in senior notes after a lack of appetite due to “broader market conditions,” the company said Nov. 13.
Resolute said it saw the market as an opportunistic means to refinance its $525 million in senior notes due in 2020. The company concluded that current terms and conditions available in the market weren’t attractive enough for Resolute to move forward. Resolute had intended to refinance its debt by adding about $25 million and pushing its debt due date to 2025.
Resolute’s borrowing base was amended last month and updated earlier this month to reflect the sale of the Aneth Field properties, resulting in a slight reduction in the base to $210 million from $219 million, Capital One Securities said in a Nov. 14 report. “We currently estimate that the company will exit 2017 with about $200 million liquidity including the Aneth sale proceeds,” said analyst Richard Tullis.
Resolute closed the sale of Aneth Field assets to Elk Petroleum on Nov. 6. Resolute will receive up to $195 million, depending on payments linked to commodity prices.
Recommended Reading
What's Affecting Oil Prices This Week? (April 15, 2024)
2024-04-15 - While concerns about the stability of oil supply are increasing, Stratas Advisors does not expect oil supply to be disrupted – unless there is further escalation in the Middle East.
Shipping Industry Urges UN to Protect Vessels After Iran Seizure
2024-04-19 - Merchant ships and seafarers are increasingly in peril at sea as attacks escalate in the Middle East.
What's Affecting Oil Prices This Week? (April 8, 2024)
2024-04-08 - Stratas Advisors says geopolitics are providing a boost for oil prices as conflicts escalate–and while crude oil and oil products continue to flow, the possibility of disruption is increasing.
What's Affecting Oil Prices This Week? (April 22, 2024)
2024-04-22 - Stratas Advisors predict that despite geopolitical tensions, the oil supply will not be disrupted, even with the U.S. House of Representatives inserting sanctions on Iran’s oil exports.
What's Affecting Oil Prices This Week? (March 11, 2024)
2024-03-11 - Stratas Advisors expects oil prices to move higher in the middle of the year, but for the upcoming week, there is no impetus for prices to raise.