SUBSEQUENT EVENTS (Notes)

3 Months Ended

Mar. 31, 2023

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

On April 12, 2023, a wholly-owned subsidiary of the Company completed the acquisition of Advance Energy Partners Holdings, LLC (“Advance”) from affiliates of EnCap Investments L.P., including certain oil and natural gas producing properties, undeveloped acreage and midstream assets located primarily in Lea County, New Mexico and Ward County, Texas (the “Advance Acquisition”). The Advance Acquisition has an effective date of January 1, 2023 and an aggregate purchase price consisting of an amount in cash equal to approximately $1.60 billion (which amount is subject to certain customary post-closing adjustments) and potential additional cash consideration of $7.5 million for each month of 2023 in which the average oil price (as defined in the securities purchase agreement) exceeds $85 per barrel. The purchase price for the Advance Acquisition was funded with borrowings under the Credit Agreement and cash on hand.

On April 11, 2023, the Company completed the sale of $500.0 million in aggregate principal amount of the Company’s 6.875% senior notes due 2028 (the “2028 Notes”). The 2028 Notes mature on April 15, 2028. Interest on the 2028 Notes is payable in arrears on each April 15 and October 15 and the first interest payment date for the 2028 Notes will be October 15, 2023. The 2028 Notes are guaranteed on a senior unsecured basis by the Guarantor Subsidiaries. The Company received net proceeds from the issuance and sale of the 2028 Notes of approximately $487.6 million after deducting the initial purchasers’ discounts and estimated offering expenses. Proceeds from the 2028 Notes and net cash flows from operations were used to repay $525.0 million of borrowings under the Credit Agreement leaving outstanding borrowings under the Credit Agreement at April 25, 2023 of $625.0 million. Neither San Mateo nor Pronto is a guarantor of the 2028 Notes.