Diversified Gas & Oil PLC says semi-annual redetermination of credit facility

() has announced that the company’s bank lending group, led by KeyBank National Association has completed the semi-annual redetermination of its senior secured credit facility and reaffirmed the existing $425mln borrowing base with no changes to pricing, covenants or other material terms.

The FTSE 250-listed US-based owner and operator of natural gas, natural gas liquids, oil wells and midstream assets noted that following the redetermination, its liquidity exceeds $220mln, comprised of cash on hand and availability under the credit facility.

The company noted that its current Net Debt ($730 million) to adjusted EBITDA ratio approximates 2.2 times, lower than its stated internal threshold and well below the debt covenant threshold. 

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In a statement, Rusty Hutson, Jr., Diversified Gas & Oil’s CEO commented, “We are pleased that our strong production profile, robust hedging positions and long-life proved developed producing reserves support a unanimous reaffirmation of our borrowing base. Recognising the challenging times in which we operate and against a backdrop of many borrowing base reductions, I would like to thank our bank group for their continued support of our differentiated business strategy.

“Evidenced by two consecutive dividend increases representing more than a 14% increase per share since the global pandemic began, our strategy remains highly resilient in the current commodity price environment. As we round out an exceptional year for DGO, we look forward to carrying our positive momentum into 2021.”

The company’s next scheduled redetermination is in the second quarter of 2021.