Jones Energy,Inc. (NYSE:JONE) Files An 8-K Entry into a Material Definitive AgreementItem 1.01 Entry Into a Material Definitive Agreement.
On November26, 2017, Jones Energy Holdings, LLC (“JEH”), a subsidiary of Jones Energy,Inc. (the “Company”), entered into an amendment (the “Amendment”) to the Credit Agreement dated as of December31, 2009 among JEH, Wells Fargo Bank, N.A., as administrative agent, and the lenders signatory thereto (as amended, the “Credit Agreement”). Among other things, the Amendment:
· Permits JEH to raise up to $350 million of second lien debt, subject to covenant compliance and other customary conditions; and
· Increases the Company’s hedge limits to permit, at any time, hedging of up to (i)50% of projected production from proved reserves over the period of 24 months following such time and (ii)85% of projected production from proved reserves for the subsequent period of 36 months thereafter.
The foregoing description of the Amendment does not purport to be complete and is qualified in its entirety by reference to the full text of the Amendment, a copy of which is filed with this Current Report on Form8-K as Exhibit10.1 and is incorporated by reference herein.
Item 7.01 Regulation FD Disclosure.
On November27, 2017, the Company issued a press release announcing the Amendment. A copy of the press release is furnished as Exhibit99.1 hereto and is incorporated herein by reference.
The information disclosed in Item 7.01, including Exhibit99.1 hereto, is being furnished and shall not be deemed “filed” for purposes of Section18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that section, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act except as expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
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ExhibitNo.
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Description
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10.1
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Amendment No.11 to Credit Agreement dated as of November26, 2017, among Jones Energy Holdings, LLC, as borrower, Jones Energy,Inc., Jones Energy, LLC and Nosley Assets, LLC, as guarantors, Wells Fargo Bank, N.A., as administrative agent, and the lenders party thereto.
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99.1
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Press Release, dated November27, 2017
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Jones Energy, Inc. ExhibitEX-10.1 2 a17-27593_1ex10d1.htm EX-10.1 Exhibit 10.1 Execution Version AMENDMENT NO. 11 TO CREDIT AGREEMENT This AMENDMENT NO. 11 TO CREDIT AGREEMENT (this Agreement) dated as of November 26,…To view the full exhibit click here
About Jones Energy,Inc. (NYSE:JONE)
Jones Energy, Inc. is an independent oil and gas company engaged in the exploration, development, production and acquisition of oil and natural gas properties. The Company’s assets are located within the Anadarko and Arkoma basins of Texas and Oklahoma. It owns leasehold interests in oil and natural gas producing properties, as well as in undeveloped acreage, located in the Anadarko and Arkoma basins in Texas and Oklahoma. The Company’s oil is generally sold under short-term, extendable and cancellable agreements with unaffiliated purchasers. The Company’s natural gas is sold at delivery points at or near producing wells to natural gas gathering and marketing companies. Its total estimated proved reserves are approximately 101.7 million barrels of oil equivalent (MMBoe). Approximately 25% of its total estimated proved reserves consist of oil, over 32% consist of natural gas liquids (NGLs) and over 43% consist of natural gas. Its properties include over 1,020 gross producing wells.