PrimeEnergy Resources Corporation confirmed that its senior secured revolving credit facility, led by Citibank, has a reaffirmed borrowing base of $115 million and that the company had no outstanding borrowings as of February 27, 2026, leaving the full amount available for future drawdowns.
The Fifth Amendment to the Fourth Amended and Restated Credit Agreement lowered the interest‑rate margins on all utilization levels by 50 basis points. The SOFR‑based loan margin now ranges from 2.75% to 3.75%, down from 3.25% to 4.25% prior to the amendment, while the alternate base‑rate margin is now 1.75% to 2.75%, a 50‑basis‑point reduction from 2.25% to 3.25%. The cut reduces PrimeEnergy’s financing costs and improves the cost of capital for any future drawdowns.
The amendment also updates the commodity‑hedging covenant, raising the borrowing‑base utilization threshold from 25% to 30%. The higher threshold gives PrimeEnergy more flexibility to use the credit facility for hedging activities without breaching covenant limits, thereby supporting its risk‑management strategy.
PrimeEnergy’s 2025 drilling program, which is fully funded, targets 30 horizontal wells with a committed $84 million budget and aims to lift production to 20,000 barrels of oil equivalent per day by year‑end. The program’s financing will be supported by the available credit facility and the company’s strong cash flow generation.
The revolving credit facility has aggregate commitments of $300 million, matures on December 20, 2028, and is secured by PrimeEnergy’s operating assets. The facility’s full availability and lower pricing reinforce the company’s debt‑free balance sheet and provide a low‑cost source of capital for future capital expenditures.
CFO Beverly A. Cummings said, "We appreciate the continued support of our banking group. The reaffirmed borrowing base and reduced pricing reflect the strength of our balance sheet and asset base. With no borrowings outstanding and full availability under our revolving credit facility, PrimeEnergy remains well positioned to execute our capital program while maintaining financial discipline."
The amendment signals PrimeEnergy’s continued focus on disciplined capital allocation and financial flexibility, reinforcing its strategy of funding growth through low‑cost, internally generated cash rather than equity dilution.
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