Saturday, July 13, 2024

Highwood Asset Management Ltd. increases credit facility to $110 million and launches 2H2024 drilling program

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.

Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice. The content is based on general research and may not be accurate, reliable, or up-to-date. Before making any financial decisions, it is recommended to consult with a professional financial advisor or conduct thorough research to verify the accuracy of the information presented. The author and publisher disclaim any liability for any financial losses or damages incurred as a result of relying on the information provided in this article. Readers are encouraged to independently verify the facts and information before making any financial decisions.

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