Sabine Oil & Gas Corp (OTCMKTS:SOGC) confirmed that it finalized a forbearance deal with the lenders as per its revolving credit facility. The agreement will offer the Company with additional capital flexibility as it held talks with its creditors and respective professionals pertaining to capital and debt structure.
Sabine Oil’s legal advisors Kirkland & Ellis LLP and financial advisors Lazard are suggesting the Board of Directors and management on strategic alternatives linked to its capital structure. As previously stated, Sabine Oil & Gas had a cash balance of almost $280 million, which gives substantial liquidity to support its current operations. It is continuing to pay trade creditors and suppliers in the ordinary course.
The performance
Sabine Oil & Gas reported its 4Q2014 results in month of March. As per the report, the company concluded the business combination of Forest Oil Corporation and Sabine Oil & Gas on December 16, 2014. The results also included fifteen days of operating data of the combined unit. The average daily production increased by 18% to 205 MMcfe/d in FY2014, from 175 MMcfe/d in FY2013.
Excluding the impact of the divestiture of the North Texas asset, the average daily production in FY2014 jumped by 32% from the same period in FY2013. The oil production jumped 55% from the same period in 2013. The liquids production volumes accounted for 34% of total production and 53% of revenues for 2014. The adjusted EBITDA for FY2014 was $330.9 million, indicating a 12% increase over FY2013.
The momentum
Sabine Oil & Gas Corp (OTCMKTS:SOGC) understand that market dynamics have changed significantly in the past year, which affected the company’s performance last year. The company is taking proactive measures to enhance liquidity and strengthen the balance sheet.
In last trading session, the stock price of SOGC gained more than 3% to close the trading session at $0.0900. The gains came at a share volume of 4.11 million compared to average share volume of 934,430.
