Summary
EOG Resources Inc. (EOG) has entered into a new $1.9 billion senior unsecured Revolving Credit Agreement, replacing its previous $2.0 billion facility. This new agreement, effective June 7, 2023, extends the maturity date to June 7, 2028, with options for two one-year extensions, providing EOG with enhanced financial flexibility and a longer-term commitment from its banking partners. Key terms of the new facility include a commitment of $1.9 billion, with an option to increase this to $3.0 billion, and provisions for a swingline and letter of credit subfacility. Interest rates will be based on SOFR or the Base Rate, adjusted by an applicable margin tied to EOG's credit rating. The agreement contains customary covenants, including a financial covenant requiring Total Debt to Total Capitalization to remain at or below 65%. Importantly, there were no outstanding borrowings or letters of credit under the prior facility at the time of its termination, indicating a smooth transition and strong current liquidity position for EOG.
Key Highlights
- 1EOG Resources entered a new $1.9 billion senior unsecured Revolving Credit Agreement on June 7, 2023.
- 2The new facility replaces a previous $2.0 billion agreement and extends the maturity date to June 7, 2028.
- 3EOG has the option to extend the maturity for two additional one-year periods, subject to bank consent.
- 4The new credit facility allows for potential increases up to $3.0 billion, offering significant financial flexibility.
- 5Interest rates will be variable, based on SOFR or Base Rate plus an applicable margin linked to EOG's credit rating.
- 6A financial covenant requires Total Debt to Total Capitalization to not exceed 65%.
- 7No borrowings or letters of credit were outstanding under the prior facility at the time of termination.