Extraction Oil & Gas sold $750 million in senior unsecured notes, more than the $600 million it had initially expected to sell, the Denver-based petroleum company said on Thursday.
The notes, which will pay interest at 5.62 percent and are due in 2026, will replace $550 million in outstanding senior notes carrying an interest rate of 7.87 percent that were coming due in 2021.
Extraction, which is active in Weld County and has plans to drill in Broomfield, made a cash tender offer to buy out holders of the 2021 notes. That tender offer will expire on Jan. 24 and the new note offering is expected to close a day later.
Extraction also released preliminary estimates for the fourth quarter. The company said it started selling production from 75 new wells and fracked or completed another 42 wells.
Of those new wells, about 59 came online in the second half of the fourth quarter, meaning the boost they could provide to revenues and earnings may come in the first quarter.
“These 59 wells contributed little to our fourth quarter production but have positioned us well as we entered 2018,” Mark Erickson, chairman and CEO, said in the earnings release.
