Diversified Gas & Oil PLC says bank lending group reaffirms existing US$425mln borrowing base

() announced its bank lending group led by KeyBank National Association, reaffirmed an existing US$425mln borrowing base.

It is related to the oiler’s senior secured credit facility and there are no changes to pricing, covenants or other material terms after completing the credit facility’s semi-annual redetermination, the company said.

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“Once again, our portfolio of stable-producing wells with long-life reserves complemented by robust hedges and value-enhancing midstream assets garnered a unanimous reaffirmation of our current borrowing base,” said Diversified’s chief executive Rusty Hutson, Jr. said in a release.

“Ever mindful of the challenging pandemic and related volatility, I would like to thank our sixteen-member bank group for their support of our differentiated business strategy through lending and other services that support our hedging and financing activities,” he continued.

“The reaffirmation solidifies our liquidity as we continue to evaluate opportunities to create stakeholder value by enlarging our portfolio of producing and midstream assets over which we can deploy our Smarter Asset Management programmes.”

The firm’s next scheduled redetermination will occur during the fourth quarter of 2021.