Company Update (NYSE MKT:GST): Gastar Exploration Inc Announces Borrowing Base Maintained At $200 Million
Gastar Exploration Inc (NYSEMKT:GST) announced that it has completed its second scheduled borrowing base redetermination of its revolving credit facility for 2015 and, as a result, the borrowing base has been reaffirmed by the lending participants at $200.0 million. Currently, Gastar has drawn $65.0 million under its revolving credit facility, resulting in $135.0 million of unused borrowing capacity. The next scheduled borrowing base redetermination is to occur by May 1, 2016.
Michael A. Gerlich, Gastar’s Chief Financial Officer, commented, “Our successful drilling activity in 2015 combined with our strong hedging program allowed us to maintain our borrowing base in a difficult commodity price environment. The available borrowings under this credit facility, along with our cash on hand and internally generated cash flow, will give Gastar more than adequate liquidity to fund our recently expanded 2015 capital expenditures budget and provide for a strong liquidity position as we enter 2016.” (Original Source)
Shares of Gastar Exploration closed last Friday at $1.35. GST has a 1-year high of $7.95 and a 1-year low of $1. The stock’s 50-day moving average is $1.63 and its 200-day moving average is $2.65.
On the ratings front, Gastar Exploration has been the subject of a number of recent research reports. In a report issued on August 20, Noble Financial analyst Philip Dodge downgraded GST to Hold. Separately, on July 14, KeyBanc’s David Deckelbaum maintained a Buy rating on the stock and has a price target of $3.50.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Philip Dodge and David Deckelbaum have a total average return of -43.9% and -31.0% respectively. Dodge has a success rate of 0.0% and is ranked #3639 out of 3743 analysts, while Deckelbaum has a success rate of 10.7% and is ranked #3716.
Gastar Exploration Inc is an independent energy company. It is engaged in the exploration, development and production of oil, condensate, natural gas and NGLs in the US.