Earthstone Energy Inc. recently had the borrowing base under its senior secured revolving credit facility increased by $100 million to $650 million, which is largely a testament to the successful execution of the independent energy company’s consolidation strategy, according to President and CEO Robert J. Anderson.

“We greatly appreciate the continued support of our lending group as we have been successfully executing our strategy of consolidating assets to increase scale and efficiency this year,” Anderson commented in a release from The Woodlands, Texas-based company on Sept. 20.

According to the release, Earthstone entered into an amendment to its credit facility under which the borrowing base has been increased from $550 million to $650 million in connection with its regularly scheduled semi-annual redetermination. The increase to the borrowing base is a result of Earthstone’s successful drilling so far in 2021, Eagle Ford acquisitions which closed in May and June, and the improvement in commodity prices, according to Anderson.

“We believe that our continued operational focus and acquisition activity emphasizing low-cost, high-margin producing assets is building significant shareholder value,” he said. “We will remain committed to our longstanding financial discipline as we continue these efforts.”

As of Aug. 31, Earthstone had an estimated $1.2 million in cash and $286.6 million of long-term debt outstanding under its credit facility. Adjusted for the increase in the borrowing base to $650 million, the company said it now has $363.4 million of undrawn borrowing base capacity and $1.2 million in cash, resulting in total liquidity of approximately $364.6 million.

Earthstone Energy’s primary assets are in the Midland Basin of the Permian in West Texas. The company also has a footprint in the Eagle Ford Shale in South Texas, where the company recently added to its position through the acquisition of working interests in assets it operates located in southern Gonzales County from four separate sellers.