Callon Petroleum secures 20% increase in borrowing base

Callon Petroleum Co.’s (NYSE: CPE) borrowing base under its senior secured revolving credit facility was increased to $300 million following its lenders' regularly scheduled semi-annual redetermination process. There were no other changes to the terms of the credit facility resulting from this borrowing base redetermination.

At the end of second-quarter 2015, the company’s liquidity stood at nearly $177 million, according to Seaport Global Securities analysts, comprising nearly $2 million in cash and $175 million available on the $250 million credit facility, they continued.

The analysts see the 20% borrowing base increase as a positive, noting that increases of that size “will likely be few and far between this redetermination season, and we view the added liquidity as a boon for CPE as the company gears up for 2016 (management previously outlined plans for ~20% YoY production growth next year, while achieving FCF neutrality in 2H:16).”

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