TULSA, Okla., April 29, 2020 /PRNewswire/ -- Samson Resources II, LLC ("Samson" or the "Company") announced today that the Borrowing Base under its senior secured revolving credit facility has been redetermined by its lender group from $100 million to $80 million, effective April 15, 2020, following its regularly scheduled redetermination process. The primary driver of the reduction is attributable to the crude oil price forecast utilized by the lender group. No other material changes were made to the terms or conditions under the credit facility during the process.
Joseph A. Mills, President and CEO of the Company stated, "Our bank group has continued to be tremendously supportive of Samson during this unprecedented time in the crude oil and financial markets. The Company remains financially disciplined and ended the first quarter of 2020 with approximately $9 million of net debt. Samson has the vast majority of its anticipated 2020 crude oil production hedged for the rest of 2020 at $60 per barrel and the first half of 2021 hedged at over $55 per barrel. We have reduced our 2020 total capex spend by over 70% and expect to only spend approximately $35 MM in 2020, most of which was already spent in Q1 2020. In addition, Samson is focused on reducing its overall lease operating and general and administrative expenses to keep the company profitable during these challenging times. Samson continues to strategically position itself to endure the current challenges and appreciates the bank group for their unwavering support and partnership."
Samson is a privately held onshore exploration and production company headquartered in Tulsa, Oklahoma. The Company holds approximately 132,000 net acres in the Powder River Basin in Wyoming. For more information, please visit our website at www.samson.com.
In this press release, all statements that are not purely historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may be identified by the words "believe," "expect," "anticipate," "project," plan," "estimate," intend," "potential" and other similar expressions. Forward-looking statements are based on currently available business, economic, financial and other information and reflect management's current beliefs, expectations and views with respect to future developments and their potential effects on Samson. Actual results could vary materially depending on risks and uncertainties that may affect Samson and its business. Samson's actual actions and results may differ materially from what is expressed or implied by these statements due to a variety of factors, including (a) the ability of Samson to perform well and compete effectively, (b) the impact of restrictions in Samson's Reserve Based Lending facility on its ability to make capital investments and pursue strategic growth opportunities, (c) the ability of Samson to continue to attract and retain qualified employees, and (d) other risks and uncertainties as disclosed by Samson in the future. Samson assumes no obligation to update any forward-looking statement made in this press release to reflect subsequent events or circumstances or actual outcomes.
SOURCE Samson Resources II, LLC