Diamondback Energy, Inc. - Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by Diamondback Energy, Inc. on June 21, 2016. The filing reports the entry into a material definitive agreement regarding the company's credit facilities.
Key Financial Metrics
The filing details specific terms of the company's revolving credit facility:
- Borrowing Base: Set at $700.0 million.
- Commitment Amount: Borrower elected a commitment amount of $500.0 million.
- Administrative Agent: Wells Fargo Bank, National Association.
The filing text does not provide clear values for revenue, profit, cash flow, margins, or total debt outstanding as of this date.
Material Changes
The company entered into a Third Amendment to its Second Amended and Restated Credit Agreement (originally dated November 1, 2013). The primary material change is the addition of a provision requiring the borrower and other loan parties to provide control agreements with respect to deposit accounts and securities accounts to secure obligations under the Credit Agreement.
Outlook, Risks, and Management Commentary
The filing does not contain management commentary, forward-looking guidance, or specific risk factors beyond the standard incorporation of the amendment text. The amendment serves to secure obligations through control agreements on specific accounts.
Key Facts for Investor Verification
- Verify the impact of the new control agreements on deposit and securities accounts.
- Confirm the utilization rate of the $500.0 million commitment against the $700.0 million borrowing base.
- Review the full text of Exhibit 10.1 for any covenants or conditions not summarized in the 8-K.