Miller Energy Resources, Inc. Enters into Third Amendment to Credit Agreement
Dec 10 14
On December 10, 2014, Miller Energy Resources, Inc. entered into a Third Amendment to Credit Agreement, dated as of June 2, 2014, among company, as borrower, KeyBank National Association, as administrative agent (the First Lien Agent"), and the lenders party thereto (the First Lien Lenders") and to Guarantee and Collateral Agreement, dated as of June 2, 2014 among Company and its subsidiaries and the First Lien Agent. The First Lien Amendment, among other things, (1) amends leverage and interest covenants, (2) establishes approved plans of development (Plans") and defines Permitted Capital Expenditures" and adds requirements for the development of the drilling program within those Plans and restricts ability to engage in capital expenditures other than Permitted Capital Expenditures, (3) permits to issue an additional $25 million in preferred stock, measured in terms of the stated liquidation preference of that stock (to a total of $50 million in stated liquidation preference in total), (4) adjusts the percentage by value of oil and gas properties that must be the subject of mortgages in favor of the First Lien Agent (for the benefit of the First Lien Lenders) from 80% to 90%, (5) includes Mr. Carl F. Giesler, Jr., Chief Executive Officer, as one of the officers designated in the definition of Change of Control," (6) eliminates restrictions on the sale of equity interests by Mr. Deloy Miller without impacting that Change of Control" definition, (7) provides waivers related to certain events of default which arose as a result of Mr. Scott M. Boruff's resignation as Chief Executive Officer and certain sales of equity interests by Mr. Boruff as well as in connection with the scheduled payment of dividends on preferred stock that occurred while an event of default had occurred, (8) extends the date by which the Company must remediate the material weakness in its internal controls over financial reporting from April 30, 2015 to April 30, 2016, but requires an additional borrowing base redetermination, unless waived by the majority of the First Lien Lenders, in the event April 30, 2015 audited financial statements are issued with any qualification as to the effectiveness of internal controls over financial reporting, (9) makes certain technical amendments intended to allow to close the acquisition of Savant by easing certain requirements (which would have applied after that acquisition in the absence of this First Lien Amendment) related to its subsidiary, Nutaaq Pipeline, LLC, (10) requires that not permit the aggregate revolving credit exposure of the First Lien Lenders to exceed $50 million in the aggregate prior to next redetermination date for borrowing base, scheduled for February 1, 2015 and (11) requires that the next receipt of tax credits by company be used as a prepayment of the outstanding loans under the First Lien Credit Agreement; provided that receive that payment before the next scheduled redeterminaton date of borrowing base, agree not to permit the aggregate revolving credit exposure of the First Lien Lenders to exceed $40 million in the aggregate.
Miller Energy Resources, Inc. Announces Unaudited Consolidated Production Results for the Second Quarter and Earnings Results for the Second Quarter and Six Months Ended October 31, 2014
Dec 10 14
Miller Energy Resources, Inc. announced unaudited consolidated production results for the second quarter and earnings results for the second quarter and six months ended October 31, 2014. For the quarter, the company reported total production was 301,078,000 boe against 193,260,000 boe a year ago. Net production of Oil volume was 207,544,000 bbls against 208,821,000 boe a year ago. Net production of natural gas volume was 561,199,000 bbls against 71,727,000 boe a year ago. Average daily production (bbls/d) was 2,256,000 against 1,971,000 a year ago. Average daily production (mcf/d) was 6,100,000 against 780,000 a year ago. Average daily production (boe/d) was 3,273,000 against 2,101,000 a year ago.
For the quarter, the company reported total revenues of $24,176,000 against $18,796,000 a year ago. Operating loss was $305,157,000 against $4,283,000 a year ago. Loss before income taxes was $285,654,000 against $9,838,000 a year ago. Net loss attributable to common stockholders was $172,280,000 or $3.71 per diluted share against $8,285,000 or $0.19 per diluted share a year ago. Adjusted EBITDA was $9,357,000 against $5,865,000 a year ago.
For the quarter, the company reported total revenues of $24,176,000 against $18,796,000 a year ago. Operating loss was $314,780,000 against $10,459,000 a year ago. Loss before income taxes was $304,857,000 against $21,385,000 a year ago. Net loss attributable to common stockholders was $187,902,000 or $4.07 per diluted share against $17,702,000 or $0.40 per diluted share a year ago. Net cash provided by operating activities was $25,483,000 against $4,174,000 a year ago. Additions to property, plant and equipment were $94,574,000 against $67,121,000 a year ago. Adjusted EBITDA was $23,358,000 against $6,902,000 a year ago.