Business Context and Reporting Period
This Form 8-K was filed by Halcón Resources Corporation (not Battalion Oil Corp) on November 16, 2018. The report details the entry into a material definitive agreement regarding the company's senior secured revolving credit facility.
Key Financial Metrics
The filing does not provide revenue, profit, cash flow, or margin data. The primary financial metric disclosed relates to the company's credit facility:
- Borrowing Base: Set at $350 million following the closing of the sale of the company's water infrastructure assets.
- Aggregate Maximum Credit Amount: Reduced to $275 million.
- Effective Borrowing Limit: Limited to $275 million.
Material Changes
The company executed the Sixth Amendment to its Amended and Restated Senior Secured Revolving Credit Agreement. Key changes include:
- Provisions allowing for optional increases in the Maximum Credit Amount by mutual agreement between the company and lenders.
- A reduction in the Aggregate Maximum Credit Amount to $275 million, aligning the borrowing limit with previous disclosures despite the higher borrowing base.
Guidance, Outlook, and Risks
The filing contains no forward-looking guidance, management commentary on future performance, or specific risk factors beyond the terms of the credit agreement. The document notes that the description of the Amendment is qualified in its entirety by the terms and conditions of the Amendment itself, which is filed as Exhibit 10.1.
Investor Verification Checklist
- Verify the exact terms of the "Sixth Amendment" in Exhibit 10.1 to understand conditions for optional credit increases.
- Confirm the status of the sale of water infrastructure assets, as the $350 million borrowing base is contingent on this closing.
- Review the company's current outstanding debt levels to assess the remaining capacity under the $275 million limit.