Surge Energy America Announces Full Repayment of Revolving Credit Facility

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Oct 25, 2022, 10:00 ET

HOUSTON, Oct. 25, 2022 /PRNewswire/ -- Surge Energy US Holdings Company ("Surge Energy" or the "Company") announces a full repayment in October of the Company's revolving credit facility ("Credit Facility").

The primary usage of the outstanding debt on the Credit Facility was for two acquisitions in 2021 that resulted in increased acreage of approximately 22,000 acres, added over 100 drilling locations, added cash flow generating production, and increased the Company's scope and scale. The total acquisition consideration was $457.5 million at the time of each closing. The outstanding debt on the Credit Facility at year-end 2021 was $355 million. Additionally, the Company has further reduced debt via partial repurchases of the Company's Senior Notes due 2026 and Senior Notes due 2027. Through October 24, 2022, the Company has repurchased $69 million of face-value bonds, resulting in a total debt reduction of $424 million in 2022.

As a result of the debt reduction, the Company's trailing twelve-month leverage ratio has also improved and is expected to be approximately 1.0x by year-end 2022.

"The quick pay down of the revolver following the acquisitions in 2021 is a result of Surge's strong assets, commitment to discipline, and the quality of our people," stated Chief Financial Officer James Welch. "This paydown once again positions Surge for additional growth in the future."

About Surge Energy

Surge Energy US Holdings Company is an independent oil and natural gas company focused on the development, exploitation, production and acquisition of oil and natural gas reserves in the Midland Basin of West Texas, one of three primary sub-basins of the Permian Basin. The Company is headquartered in Houston, Texas, and currently holds approximately 114,000 net acres in the Permian Basin. For more information, visit our website at www.SurgeEnergyA.com.

SOURCE Surge Energy