Civitas Resources Inc. priced a private placement of $1.35 billion in aggregate principal amount of 8.375% senior notes due 2028 and $1.35 billion in aggregate principal amount of 8.750% senior notes due 2031, the company said in a June 22 press release.
The offering is expected to close on June 29 and is subject to customary closing conditions. The notes will be available to “qualified institutional buyers” under Rule 144A of the Securities Act of 1933, or non-“U.S. persons” outside the U.S. under Regulation S.
Civitas plans to take the net proceeds from the sale of the senior notes, as well as cash on hand and borrowings from the company’s credit facility to fund a portion of the consideration for the acquisitions of both Hibernia Energy III LLC and Tap Rock Resources LLC.
Civitas could be required to redeem all—or a portion—of the notes if the acquisition is not completed by October 31, or if Civitas notifies the notes’ trustee that the acquisition will not be completed, according to the release.
Civitas Resources, based in Colorado, is a carbon neutral E&P operating in the Denver-Julesburg Basin.
Recommended Reading
Equinor Resumes Helicopter Flights on NCS Following Fatal Accident
2024-03-01 - Operator also announced it is expanding its helicopter fleet by 15 through contracts with Bell and Leonardo, with the first two helicopters slated for delivery in about a year.
CAPP Forecasts $40.6B in Canadian Upstream Capex in 2024
2024-02-27 - The number is slightly over the estimated 2023 capex spend; CAPP cites uncertain emissions policy as a factor in investment decisions.
Coalition Launches Decarbonization Program in Major US Cities, Counties
2024-04-11 - A national coalition will start decarbonization efforts in nine U.S. cities and counties following a federal award of $20 billion “green bank” grants.
Fire Closes Atlas Energy’s Kermit, Texas Mining Facility
2024-04-15 - Atlas Energy Solutions said no injuries were reported and the closing of the mine would not affect services to the company’s Permian Basin customers.
Qnergy Tackles Methane Venting Emissions
2024-03-13 - Pneumatic controllers, powered by natural gas, account for a large part of the oil and gas industry’s methane emissions. Compressed air can change that, experts say.