Highwood Asset Management Ltd. Announces Increase in Credit Facility and Commencement of Drilling Program
Highwood Asset Management Ltd. has some exciting news to share with its investors. The company recently completed its annual borrowing base redetermination for its credit facility, resulting in an increase from $100 million to $110 million. This increase is attributed to the successful drilling program that delivered significant PDP reserves growth. Additionally, the maturity date of the credit facilities has been extended to August 2, 2026.
Moreover, Highwood has welcomed Canadian Imperial Bank of Commerce and Macquarie Bank Limited as new lenders on the syndicated credit facility, joining Royal Bank of Canada and ATB Financial. The company has also started its 2H2024 drilling program, with the spudding of the 3-11 Well on June 25, 2024. Highwood plans to drill a total of six wells during the remainder of 2024.
Highwood’s focus remains on growing its Free Cash Flow profile while maintaining prudent leverage for organic growth and strategic M&A opportunities. The company aims to provide shareholders with a significant return of capital in the long term. Highwood has reiterated its 2024 production guidance and debt reduction targets, showcasing its commitment to financial discipline and growth.
It’s important to note that the forward-looking statements provided by Highwood come with certain risks and uncertainties, as is common in the oil and gas industry. The company has outlined various factors that could impact its operational and financial results, emphasizing the need for caution when interpreting these statements.
Overall, Highwood Asset Management Ltd. is making strategic moves to strengthen its financial position and drive growth in the coming years. Investors can look forward to continued updates on the company’s progress and performance as it navigates the dynamic energy market landscape.
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