20 July 2023listing compliance notice▼ BadMajor
BAYTEX ENERGY USA, INC. deregistered its securities, ending its obligation to file reports with the SEC.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
20 June 2023business combination● NeutralMajor
On June 20, 2023 Baytex completed its merger with Ranger, after shareholders approved it on June 16, 2023. Each Class A share was converted into 7.49 Baytex common shares plus $13.31 cash, and Ranger became an indirect wholly owned subsidiary of Baytex. The Wells Fargo credit facility was paid off and terminated, and the 9.250% Senior Notes due 2026 were redeemed at 106.938% of principal plus accrued interest. Ranger stock stopped trading on Nasdaq on June 20, 2023, all directors and officers ceased their roles (some were appointed to Baytex roles), and Ranger intends to file a Form 15 to suspend its SEC reporting. This resolves the Baytex merger thread.
20 June 2023listing compliance notice● NeutralMajor
BAYTEX ENERGY USA, INC.'s exchange filed to remove a class of its securities from listing.
18 May 2023business combination● NeutralMajor
Ranger filed its final proxy statement/prospectus on May 18, 2023 for the Baytex merger agreed on Feb 27, 2023, setting a shareholder vote for June 16, 2023. Each Class A share would get 7.49 Baytex shares plus $13.31 cash. Rocky Creek and JSTX, who own a majority of the voting stock, have signed a support agreement to vote in favor, which the filing says would ensure approval. A joinder agreement dated May 3, 2023 added Nebula Merger Sub, LLC as a party. The filing says former Ranger and Baytex holders would own about 63% and 37% of the combined company respectively. This continues the pending merger and is not yet complete.
28 Feb 2023business combination● NeutralMajor
On Feb 27, 2023 Ranger Oil agreed to merge with Baytex Energy Corp. Each Class A share would receive 7.49 Baytex common shares plus $13.31 in cash. Rocky Creek and JSTX are expected to sign a support agreement and exchange their units and Class B shares for Class A before closing. Closing needs both companies' shareholder approvals, HSR clearance and listing approvals, with an outside date of Oct 15, 2023; termination fees are $60 million (Ranger) and $95 million (Baytex). If completed, Ranger would become a wholly owned Baytex subsidiary and holders would be bought out, but it is not yet complete.
28 Sept 2022debt financing▲ Good
By Sept 27, 2022 the company is named Ranger Oil Corporation (Class A stock, ticker ROCC) and its borrower is ROCC Holdings, LLC (formerly Penn Virginia Holdings). Amendment No. 13 raises elected commitments from $400 million to $500 million and the borrowing base from $875 million to $950 million. The filing shows the Lonestar deal and the 2021 credit amendment went through, since the borrowing base is far above the $600 million set then (inference).
24 Aug 2021debt financing▲ GoodMajor
On Aug 18, 2021 Penn Virginia signed Amendment No. 11 to its bank credit facility. Once the Lonestar merger closes and other conditions are met, the borrowing base rises to $600 million (commitments $400 million), the January 2021 availability limits, minimum hedging requirements and first lien leverage covenant are removed, the PV Energy Holdings entities come off as guarantors, and maturity moves to four years after that date. This resolves the Fall 2021 borrowing base/hedging thread, but only if the merger closes.
23 Aug 2021business combination● NeutralMajor
Penn Virginia filed the registration statement (S-4) for the Lonestar merger, restating the 0.51 Penn Virginia share per Lonestar share exchange and registering up to 5,855,940 new shares. It also sets a special shareholder meeting to vote on the share issuance, plus a separate proposal to create Class A and Class B common stock and exchange the Series A Preferred into Class B; that proposal is not a condition of the merger. This advances the open S-4 and shareholder-approval steps; it is not yet effective.
13 Aug 2021debt financing● NeutralMajor
The $400 million 9.250% senior notes due 2026 were completed on Aug 10, 2021, with proceeds held in escrow pending the Lonestar merger. Interest is paid semi-annually starting Feb 15, 2022, the notes mature Feb 15, 2026, and a change of control triggers a repurchase offer at 101%. The indenture also limits additional debt, dividends and asset sales. This completes the financing announced on July 27 and still depends on the merger closing by Nov 26, 2021.
29 July 2021material agreement● NeutralMajor
Penn Virginia priced a $400 million offering of 9.250% senior unsecured notes due 2026, sold at 99.018% of par, to help fund the pending Lonestar merger. The money sits in escrow until the merger closes (needed by Nov 26, 2021); if it does not, the notes are redeemed at 100% of principal plus accrued interest. If released, proceeds are meant to repay Lonestar's long-term debt and, with cash on hand, repay Penn Virginia's second lien term loan in full.
13 July 2021business combination● NeutralMajor
This filing gives the terms of the Lonestar deal: each Lonestar share converts into 0.51 Penn Virginia shares, leaving existing Penn Virginia holders with about 87% and Lonestar holders about 13% of the combined company. It needs approval from both sets of shareholders, antitrust clearance and an effective registration statement, and either side can walk away if it has not closed by Nov 26, 2021. Termination fees are $6 million payable by Penn Virginia and $3 million payable by Lonestar in certain cases. Shareholders will own a somewhat smaller slice of a larger company if it closes.
12 July 2021business combination● NeutralMajor
On July 12, 2021 Penn Virginia and Lonestar Resources US Inc. announced a merger agreement signed July 10, 2021, under which Penn Virginia would acquire Lonestar. The filing itself is a press-release notice with legal boilerplate; the terms appear in the companion filing the next day. This is a new thread that continues the company's Eagle Ford consolidation as described in the press release headline.
21 Jan 2021business combination● NeutralMajor
The Juniper deal announced in November 2020 closed on Jan 15, 2021. JSTX paid $150 million for 17,142,857 units and Rocky Creek contributed Texas oil and gas assets (consideration of $41,836,649.91 after adjustments) for 5,405,252 units; the company reorganized into an 'up-C' structure, and the board grew from four to nine members with Juniper naming five. Lenders amended the first-lien facility (borrowing base reaffirmed at $375 million, availability capped at $350 million, new 2.50x first lien leverage test) and the second-lien loan. Existing shareholders now share the company with Juniper, whose units become exchangeable for common stock after 180 days; this resolves the November 2020 agreement.
5 Nov 2020debt financing● NeutralMajor
On Nov 2, 2020 Penn Virginia agreed with Juniper Capital affiliates to a deal in which Juniper's JSTX Holdings would put $150 million into a new partnership (PV Energy Holdings, L.P.) holding the company's operating subsidiary, for 17,142,857 units. A second Juniper affiliate, Rocky Creek Resources, would sell Lavaca and Fayette County, Texas oil and gas assets for 4,959,000 units valued at $7.74 each ($38,382,660). Both need shareholder approval and lender consents, can be terminated if not closed by May 2, 2021, and carry termination fees of $7.5 million and $1.92 million. This is a new thread that would give Juniper a large stake in the company, with units later exchangeable into common stock.
6 May 2020debt financing▼ BadMajor
On April 30, 2020 Penn Virginia agreed to Amendment No. 7 to its credit agreement, cutting the borrowing base from $500 million to $400 million and then $375 million effective July 1, 2020, and capping availability at $350 million from October 1, 2020 until the Fall 2021 redetermination. Margins rise by 100 basis points, the maximum leverage ratio drops from 4.00 to 3.50 times, cash above $25 million must be used weekly to repay loans, and dividends and buybacks are further limited until the Spring 2021 redetermination. This reverses the May 2019 loosening of the facility; the filing also references an operational update press release but its contents are not given.
8 May 2019debt financing▲ GoodMajor
On May 7, 2019 Penn Virginia amended its Wells Fargo credit agreement (Amendment No. 6): lender commitments rose from $500 million to $1.0 billion, the borrowing base from $450 million to $500 million, margins were lowered, and the maturity was extended to May 7, 2024 (or June 30, 2022 if the second lien term loans are not extended or repaid by then). The interest coverage test was removed and a maximum leverage ratio of 4.00 to 1.00 was set. This continues the credit facility first set in Sept 2016, now much larger than the $200 million borrowing base of 2017.
22 Mar 2019business combination● NeutralMajor
Penn Virginia and Denbury mutually agreed on March 21, 2019 to terminate their October 2018 merger agreement, so the April 17, 2019 shareholder meeting will not take place and neither side pays the other anything. Penn Virginia says it will continue as a standalone company with a two-rig development plan it expects to fund from cash flow; this ends the Denbury deal thread, and shareholders keep their Penn Virginia shares.
4 Mar 2019business combination● NeutralMajor
Penn Virginia filed the definitive joint proxy statement for the Denbury merger, setting special shareholder meetings for both companies on April 17, 2019 (record date Feb 19, 2019). Penn Virginia's board unanimously recommends voting for the merger, which needs more than two-thirds of its outstanding shares; abstentions and non-votes count as votes against. This continues the October 2018 merger agreement.
29 Oct 2018business combination▲ GoodMajor
Penn Virginia agreed on Oct 28, 2018 to be acquired by Denbury Resources. Each Penn Virginia share would convert into 18.3454 Denbury shares, or $25.86 cash plus 12.4000 Denbury shares, or $79.80 cash, with proration so the total is about 191.667 million Denbury shares and $400 million cash (implied value about $1.234 billion based on Denbury's Oct 26, 2018 closing price). Closing needs approval from more than two-thirds of Penn Virginia shares and a Denbury shareholder vote, among other conditions; holders of about 15% of Penn Virginia shares signed voting support agreements, and either side can terminate if the deal is not completed by April 30, 2019.
30 June 2017debt financing▲ Good
On June 27, 2017 the company amended its credit agreement with Wells Fargo as agent, raising the borrowing base from $128 million to $200 million in the scheduled semi-annual review. The next redetermination is scheduled for October 2017. This is the post-bankruptcy revolver, dated September 12, 2016, and the borrowing base had been $128 million, the figure expected under the plan.
23 Dec 2016listing compliance notice▲ GoodMajor
Nasdaq certified BAYTEX ENERGY USA, INC.'s securities for listing, clearing them to begin trading.
15 Sept 2016auditor change● Neutral
On September 13, 2016 the company replaced KPMG with Grant Thornton as its auditor for fiscal 2016, approved by the audit committee. KPMG's 2015 report included a going-concern warning, and the filing reports no disagreements or reportable events with KPMG.
17 Aug 2016bankruptcy or receivership▼ BadMajor
The bankruptcy court confirmed the company's reorganization plan on August 11, 2016. Noteholders and certain other unsecured creditors get 100% of the new common stock (subject to dilution from the rights offering, a 6.0% commitment premium and a management plan of up to 5%), the DIP and revolver claims are paid in full, and current preferred and common stock will be canceled. Emergence awaits remaining conditions, with a new four-year exit revolver of up to $200M (initial borrowing base expected $128M) and a $50M rights offering backstopped by noteholders.
10 Aug 2016material agreement● NeutralMajor
During bankruptcy, the company's Eagle Ford oil subsidiary and Republic Midstream signed a revised gathering agreement effective August 1, 2016, replacing the September 2015 agreement. The minimum volume commitment falls from 15,000 to 8,000 barrels of oil per day, but its term is extended from 10 to 15 years, with a revised fee structure that is reduced for the first three years and then rises. This changes the Republic midstream arrangement described earlier.
12 May 2016bankruptcy or receivership▼ BadMajor
Penn Virginia and certain subsidiaries filed for Chapter 11 bankruptcy on May 12, 2016 in the Eastern District of Virginia, with a restructuring support agreement backed by holders of 87% ($1.03 billion) of about $1.20 billion in funded debt. The filing triggered default on the $300M 7.25% 2019 notes, the $775M 8.500% 2020 notes and about $112.6M under the credit agreement, though enforcement is stayed. The company says the plan would reduce long-term debt by over $1 billion, with $25M of DIP financing, up to $128M of exit financing and a $50M backstopped rights offering committed. It also warns that existing common stock will likely be extinguished with no consideration to equity holders if a plan is approved.
27 Jan 2016listing compliance notice● NeutralMajor
BAYTEX ENERGY USA, INC.'s exchange filed to remove a class of its securities from listing.
1 Aug 2014material agreement▲ GoodMajor
On July 30, 2014 the company agreed with Republic Midstream, LLC for Republic to build, own and operate a crude oil gathering system in parts of Fayette, Gonzales and Lavaca Counties, Texas, with the company's oil in the area dedicated to it. The company committed to deliver or pay for at least 15,000 barrels a day for 10 years under a 25-year agreement, with gathering fees of $1.00 to $2.00 per barrel and the system expected operational by mid-2015. The press release says it sold these gathering and transportation rights for $150 million, part to repay the revolver and the rest to fund Eagle Ford capital spending. The CEO says 2014 asset sales now total $319 million, including the pending Mississippi sale and the January gas gathering sale to AMID.
16 June 2014capital raising announcement● NeutralMajor
The company closed a private sale on June 16, 2014 of 3,250,000 depositary shares (including a fully exercised 500,000 over-allotment) in new 6.00% Convertible Perpetual Preferred Stock, Series B, each worth $100 of liquidation preference, for net proceeds of about $312.5 million. The preferred is convertible at an initial $18.34 per share, which would be about 17.7 million common shares if all converted, so it could dilute common holders. Proceeds are meant to pay down the revolver in the near term and fund an accelerated Eagle Ford program, including an added rig in July 2014 and more lease acquisitions. The company also signed a Sixth Amendment to its credit agreement raising the permitted annual shareholder dividends to $30 million and allowing up to $20 million of inducement payments to Series A preferred holders, and agreed conversion deals under which Series A holders get 4,321,039 common shares plus about $3.8 million in cash.
2 June 2014material agreement● NeutralMajor
On May 30, 2014 the company agreed to sell all of its Mississippi oil and gas assets to KKR Management Holdings L.P. for $72.7 million in cash, with closing expected in July 2014 subject to customary conditions including title and environmental reviews. The press release says the properties produced about 11.9 million cubic feet of gas equivalent per day in Q1 2014, almost all natural gas, and carried 85.3 Bcfe of proved reserves at year-end 2013. This disposes of one of the assets retained in earlier context.
15 May 2014debt financing▲ Good
On May 12, 2014 the company signed a Fifth Amendment to its credit agreement, raising lender commitments from $400 million to $450 million and the borrowing base from $425 million to $475 million. This continues the stepwise expansion of the Wells Fargo-led revolver seen since 2013.