EXTRACTION OILINC. (NASDAQ:XOG) Files An 8-K Entry into a Material Definitive Agreement

ME Staff 8-k
-
0

EXTRACTION OILINC. (NASDAQ:XOG) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry Into a Material Definitive Agreement

Amendment to Credit Agreement

On March 15, 2017, Extraction Oil & Gas, Inc. (the “Company”) entered into Amendment No. 11 (the “Amendment”) to the Credit Agreement, dated September 4, 2014 (as amended and modified, the “Credit Agreement”) among the Company, certain subsidiaries of the Company, including XTR Midstream, LLC, a Delaware limited liability company (“XTR” and together with the other subsidiaries, the “Guarantors”), the lenders party thereto (the “Lenders”) and Wells Fargo Bank, National Association (“Wells Fargo”), as administrative agent for the Lenders and as issuing lender.

The Amendment amends the Credit Agreement to, among other things, allow (i) XTR to make an investment (the “Proposed Contribution”) in an unaffiliated third-party, so long as (A) the aggregate amount of cash contributed by XTR to such entity does not exceed $5,000,000 and (B) the amount of cash and the fair market value of the assets contributed by XTR to such entity does not exceed $10,000,000 in the aggregate, and (ii) the Company to enter into a transportation agreement with a wholly-owned subsidiary of such entity. On or before 5:00 p.m. Houston, Texas time on the effective date of the Proposed Contribution, the Company will deliver to Wells Fargo, as administrative agent, executed copies of certain documents entered into in connection with the Proposed Contribution, and failure to do so will constitute an immediate Event of Default under the Credit Agreement.

Under the Amendment, the Company and each Guarantor also reaffirm that they are each party to certain security documents securing and supporting the Company’s and Guarantors’ obligations under the Credit Agreement, and each Guarantor reaffirms its obligations under the Guaranty Agreement, dated as of September 4, 2014, as amended, restated, supplemented or otherwise modified from time to time. The Amendment contains customary representations and warranties by each of the Company and each Guarantor consistent with those agreed upon in connection with previous amendments to the Credit Agreement. Except as amended by the Amendment, the Credit Agreement remains in full force and effect as originally executed. 

1


About EXTRACTION OIL & GAS, INC. (NASDAQ:XOG)

Extraction Oil & Gas, Inc., formerly Extraction Oil & Gas, LLC, is an energy company. It is focused on the acquisition, development and production of oil, natural gas and natural gas liquids (NGL) reserves in the Rocky Mountains, primarily in the Wattenberg Field of the Denver-Julesburg Basin (the DJ Basin) of Colorado. It focuses on the development of the Codell and Niobrara formations. It offers its exploration and production processes in various steps, such as seismic, site preparation, drilling the well, completing the well, monitoring the well and reclaiming the site. The Company utilizes sound walls to mute or redirect noise caused by its operations. The Company uses an electric rig to manage its drilling operations. It uses vapor recovery units to capture emissions from storage facilities. It uses lease automatic custody transfer (LACT) units to collect oil from tanks in a closed-loop system that manages air emissions associated with the oil gathering and transportation process.

EXTRACTION OIL & GAS, INC. (NASDAQ:XOG) Recent Trading Information

EXTRACTION OIL & GAS, INC. (NASDAQ:XOG) closed its last trading session down -0.65 at 16.63 with 1,164,672 shares trading hands.