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Pipestone Energy Corp - President and CEO, Paul Wanklyn.
President and CEO, Paul Wanklyn.
Source: Pipestone Energy.
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  • Pipestone Energy Corp. (PIPE) successfully increased its Reserve Based Loan to $280 million
  • The increased credit provides Pipestone with greater liquidity and flexibility with respect to its future business plans
  • Pipestone Energy has closed on its bi-annual RBL redetermination, which effective October 29, 2021, consists of a $250 million syndicated revolving facility
  • Pipestone has amended its credit agreement to allow for future permitted distributions, subject to certain customary liquidity and forecast leverage tests
  • Beginning in 2022, it expects to generate annual free cash flow above growth and maintenance expenditures
  • Pipestone Energy Corp. (PIPE is down 1.47 per cent, trading at C$3.02 at 12:38 pm ET

Pipestone Energy Corp. (PIPE) has successfully increased its Reserve Based Loan from $225 million to $280 million.

The increased credit provides Pipestone with greater liquidity and flexibility with respect to its future business plans and shareholder return objectives.

Pipestone Energy has closed on its bi-annual RBL redetermination, effective October 29, 2021, which consists of a $250 million syndicated revolving facility and a $30 million bi-lateral operating facility.

Co-led by National Bank Financial Inc., and the Bank of Montreal, and along with ATB Financial, and Canadian Western Bank the corporate banking syndicate has been expanded to also include the Business Development Bank of Canada.

Additionally, Pipestone has amended its credit agreement to allow for future permitted distributions, subject to certain customary liquidity and forecast leverage tests. The Credit Facility continues to have a revolving period until May 31, 2022, with a maturity of May 31, 2023. The next borrowing base redetermination is scheduled for May 2022.

Third-quarter results are expected to be released before the market opens on November 10, 2021. A conference call has been scheduled for November 10, 2021, at 9:00 a.m. Mountain Time (11:00 a.m. Eastern Time) for interested investors, analysts, brokers, and media representatives.

Pipestone Energy is an oil and gas exploration and production company focused on developing its large contiguous and condensate-rich Montney asset base in the Pipestone area near Grande Prairie.

Pipestone Energy is fully funded to grow its production from 15.6 Mboe/d in 2020 to 35 Mboe/d (midpoint) in 2022 while maintaining a conservative leverage profile. Beginning in 2022, it expects to generate annual free cash flow above growth and maintenance expenditures.

Pipestone Energy is committed to building long-term value for our shareholders while maintaining the highest possible environmental and operating standards, as well as being an active and contributing member to the communities in which it operates. Pipestone Energy shares trade under the symbol PIPE on the TSX.

Pipestone Energy Corp. (PIPE is down 1.47 per cent, trading at C$3.02 at 12:38 pm ET.

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