USEDC Enhances Growth Potential through $165 Million Credit Facility
U.S. Energy Development Corporation Strengthens Financial Position
The recent establishment of a $165 million syndicated revolving credit facility marks a significant milestone for U.S. Energy Development Corporation (USEDC). This initiative will not only enhance the company’s financial flexibility but also enable it to continue its growth trajectory in the energy sector.
A Key Partnership with Citibank
Leading the charge in this financial undertaking is Citibank, N.A., which has taken the helm as the lead arranger for the new credit facility. Together with partner banks like TCBI Securities, Inc., U.S. Bank National Association, and Washington Federal Bank, the partnership underscores the strong backing that USEDC enjoys in the financial community. These commitments are a testament to USEDC’s solid operational track record and its strategic vision in an ever-evolving market.
Significance of the New Credit Facility
The newly secured credit line offers USEDC a flexible funding source that is set to bolster its development projects and enhance operational efficiency across its diverse asset portfolio. This is particularly important for a company with a rich history of over 45 years in the energy sector. The facility can provide up to $500 million, significantly boosting USEDC's capability to innovate and expand.
Commitment to Operational Excellence
Brandon Standifird, CFO of USEDC, emphasized the importance of this new facility, noting it as a strategic move to optimize their capital structure. With such financial backing, USEDC is positioning itself not just for current success, but to ensure sustainable growth in the years ahead. The commitment from Citibank and the participating syndicate partners reflects confidence in USEDC’s business model and future potential.
About U.S. Energy Development Corporation
Founded in 1980, U.S. Energy Development Corporation is an exploration and production firm that adeptly manages energy assets for itself and its partners. Throughout its existence, USEDC has combined operational and financial innovation exceptionally well, pursuing a forward-thinking approach in its projects. With headquarters in the Dallas-Fort Worth metro area, the company has successfully invested in and operated approximately 4,000 wells across 13 states and Canada, demonstrating a robust commitment to growth and efficiency.
Financial Impact and Future Ventures
Since its inception, USEDC has deployed over $2 billion in its exploration and production endeavors. This strategic infusion of capital through the new credit facility will enable further exploration, support existing operations, and open doors to new opportunities. It is a concerted effort to ensure that the company remains competitive and innovative within the dynamic energy landscape.
Frequently Asked Questions
What is the purpose of the $165 million credit facility for USEDC?
The credit facility aims to provide USEDC with additional funding to support development projects and enhance operational efficiencies.
Who is leading the financing syndicate for the credit facility?
Citibank, N.A. is the lead arranger for the new credit facility, along with other participating banks.
How long has USEDC been in operation?
USEDC was founded in 1980, giving it over 45 years of experience in energy exploration and production.
What types of projects will be funded by the credit facility?
The facility will fund various development projects and strategic opportunities aimed at enhancing the company’s operational efficiency.
Does USEDC have experience in managing wells?
Yes, USEDC has managed approximately 4,000 wells across several states and Canada, showcasing its extensive experience and expertise.
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