#USA #Houston #Permian Basin #Peak 10 Energy #WTNB

Peak 10 Energy Secures New Credit Facility

Houston-based Peak 10 Energy has announced the successful closing of a new secured credit facility through its subsidiary, Peak 10 GRC Holdings, LP. This development marks a significant milestone for the company, which focuses on oil and gas operations in the rich Permian Basin.

Key Details of the Facility

The newly established credit facility is bolstered by a robust range of collateral, encompassing both operated and non-operated working interest properties situated in several prolific regions, including the Northern Midland Basin, Southern Delaware Basin, and the Eastern Shelf of the Permian Basin. The facility was championed by West Texas National Bank (WTNB), which acted as the Sole Lead Arranger, Bookrunner, and Administrative Agent.

CEO Kyle McQuire expressed his enthusiasm regarding the partnership with WTNB, highlighting their invaluable industry knowledge and comprehensive understanding of Peak 10’s operational landscape. According to McQuire, “This credit facility is a direct result of the quality and diversity of our asset base, as well as our organization's ability to navigate a constantly shifting energy market.”

Growth Potential

Established in 2023, Peak 10 has swiftly gained a foothold in the energy sector, closing nearly a dozen asset and capital market transactions within its brief history. The management emphasizes that there are various organic development and consolidation opportunities across all operational areas, which the new credit facility will enable them to pursue efficiently.

CFO Brandon Powell commented on the significance of the facility, stating, “This facility optimizes our capital structure and provides significant flexibility to execute our growth plan.” The funding will play a crucial role in bolstering their operational capabilities and expanding their market share.

Legacy Star Partners

Peak 10 functions under the umbrella of Legacy Star Capital Partners, a private equity firm that invests in varied sectors, including energy and real estate. The involvement of Legacy Star emphasizes Peak 10’s strategic value within a broader investment portfolio.

Legal counsel for both Peak 10 and WTNB was provided by Baker Botts LLP and Dorsey Whitney LLP, respectively, ensuring that the facility was structured in compliance with all regulatory standards and aligned with best practices within the industry.

Future Outlook

With the secured credit facility now in place, Peak 10 Energy is poised to harness its growth ambitions fully. The company anticipates engaging in various projects that will leverage its significant asset base to maximize returns and enhance shareholder value. As they look to the future, Peak 10 is grateful for the trust and partnership fostered with WTNB, indicating a long-term collaboration aimed at navigating the complexities of the energy sector.

In summary, the announcement of Peak 10 Energy's new secured credit facility not only underlines its commitment to strategic growth but also reflects the confidence of financial partners in the company’s asset value and market approach. As they propel forward, the energy sector watches with interest.