Denbury Resources Inc. (NYSE:DNR) has been assured that the commitment a syndicate of banks made to lend it $1.5 billion under a revolver credit still stands. The driller announced in a press release that the lenders have reaffirmed their commitment to the loan, thus removing a potential liquidity overhang.

$260 million remaining

Denbury has drawn from the facility and currently there is $260 million left under the loan. The company further said that borrowing base redetermination schedule has been set for May 1, 2017 or thereabout.

The key point that Denbury sought to stress was that no changes have been made to the terms and conditions of the revolver. Perhaps bringing out that point clearly is meant to make investors know that DNR is not putting itself into a debt quagmire.

OPEC surprise move to limit output

Denbury’s announcement that its lenders have commitment to make good their promise on the $1.5 billion loan comes after the cartel of major oil producers, OPEC, recently agreed to limit output as part of the measure to stabilize crude oil prices.

OPEC members meeting in Algeria last month agreed to cap oil production to a range of 32.5 to 33 million barrels per day. That’s down from the multiyear high of 33.24 million barrels a day in August.

The surprise move by the OPEC indicates that the members of the cartel are increasingly finding it unbearable to continue pumping oil at the prevailing depressed prices. A supply-demand imbalance has caused the price dislocation in the oil sector, impacting drillers such as Denbury.

Sale of assets

As part of the measure to adjust for the depressed oil prices, Denbury has been divesting some of its non-core assets, thus eliminating unnecessary costs and free up funds. Earlier this year, the company sold production assets with the capacity of 1,350 barrels of oil equivalent per day in Basin of North Dakota and Montana. The transaction produced $58 million for the company.

3Q2016 reporting

Denbury is set to release its 3Q 2016 results on November 3. The company posted EPS of $0.08 during 2Q 2016.

Denbury stock slid 1.4% to $2.77 across the last session. The stock is up more than 37% YTD.