WPX Energy (NYSE: WPX) has amended and restated its revolving credit facility. WPX received total commitments of $1.2 billion on a senior secured facility, with an initial borrowing base of $1.025 billion. The revolver matures on Oct. 29, 2019.
The amended terms and covenants provide WPX with increased flexibility and full access to the facility. The size of the revolver is based on the previously announced sale of the company's Piceance subsidiary, which is expected to close in early second-quarter 2016.
Analysts from Seaport Global Securities commented, “The amended revolver leaves pro forma liquidity near $1.6 billion (post the recently announced Piceance sale – $1.2 billion in proceeds, the revolver paydown of $355 million, and the repurchase of 2017 notes for $304 million. A reduction in the borrowing base was expected post the $1.2B Piceance sale announced on 2/9; with this redetermination, we think WPX remains on a strong footing as it eyes steps to further de-lever the balance sheet, including addressing future FT obligations ($577MM in aggregate at YE15), and potentially monetizing its midstream assets in the Delaware Basin, for which we believe it’s already received unsolicited offers for >$500MM.”