Hammerhead Energy announces expanded credit facility

Hammerhead Energy announces the expansion of its credit facility to C$450 million effective September 27, 2023. The increase in the credit facility was achieved through a combination of increased commitments by the existing lenders and the addition of the Bank of Montreal into the lending syndicate. The Company is very pleased to have the Bank of Montreal join its lending syndicate and looks forward to a productive relationship with its entire banking syndicate. The increase in the credit facility has allowed Hammerhead to repay, at par value, the remaining US$63.7 million of principal and accrued interest outstanding on its term debt prior to maturity. The early repayment of the term debt will reduce interest expense and eliminate any restrictions on Hammerhead instituting a return of capital strategy for the benefit of its shareholders. Hammerhead expects to communicate its formal return of capital policy, subject to approval by Hammerhead’s Board of Directors with the release of its third quarter results on November 7, 2023. On the back of strong operational results and supportive crude oil prices, Hammerhead has entered into a “free funds flow” status. For the months of July and August 2023, the Company generated C$21.9 million of free funds flow1, and expects to generate free funds flow1 each month through the end of 2023 and for every quarter in 2024 based on current strip pricing. Net cash from operating activities for the months of July and August 2023 was C$57.7 million.