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).”

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Making DDoS Mitigation Part of Your Incident Response Plan: Critical Steps and Best Practices

Like a new virulent strain of flu, the impact of a distributed denial of service (DDoS) attack is...

The Multi-Tax Challenge of Managing Excise Tax and Sales Tax

To be able to accurately calculate multiple tax types, companies must be prepared to continually ...

Operational Analytics in the Power Industry

Cloud computing, smart grids, and other technologies are changing transmission and distribution. ...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...