Exhibit 10.18
SIXTH AMENDMENT TO EIGHTH RESTATED CREDIT AGREEMENT
This Sixth Amendment to Eighth Restated Credit Agreement (this “Sixth
Amendment”) is effective as of December 1, 2011 (the “Sixth Amendment Effective
Date”), by and among CHAPARRAL ENERGY, INC., a Delaware corporation (“Parent”),
the Borrowers, JPMORGAN CHASE BANK, N.A., a national banking association, as
Administrative Agent (“Administrative Agent”), and each of the financial
institutions a party hereto as Lenders (hereinafter collectively referred to as
“Lenders”, and individually, “Lender”).
W I T N E S S E T H:
WHEREAS, Parent, Borrowers, Administrative Agent, the other Agents party thereto
and Lenders are parties to that certain Eighth Restated Credit Agreement dated
as of April 12, 2010 (as amended, the “Credit Agreement”) (unless otherwise
defined herein, all terms used herein with their initial letter capitalized
shall have the meaning given such terms in the Credit Agreement, as amended by
this Sixth Amendment); and
WHEREAS, pursuant to the Credit Agreement, the Lenders have made revolving
credit loans to Borrowers; and
WHEREAS, the parties hereto desire to amend certain terms of the Credit
Agreement in certain respects including, without limitation, to amend the Swap
Agreement covenant set forth therein.
NOW THEREFORE, for and in consideration of the mutual covenants and agreements
herein contained and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged and confessed, Parent, Borrowers,
Administrative Agent and Lenders hereby agree as follows:
SECTION 1.    Amendments. In reliance on the representations, warranties,
covenants and agreements contained in this Sixth Amendment, and subject to the
satisfaction of the conditions precedent set forth in Section 2 hereof, the
Credit Agreement is hereby amended effective as of the Sixth Amendment Effective
Date in the manner provided in this Section 1.
1.1    Amended and Restated Definition. The definition of “Loan Documents”
contained in Section 1.02 of the Credit Agreement shall be amended to read in
full as follows:
“Loan Documents” means this Agreement, the First Amendment, the Second
Amendment, the Third Amendment, the Fourth Amendment, the Fifth Amendment, the
Sixth Amendment, the Notes, the Letter of Credit Agreements, the Letters of
Credit, the Certificate of Effectiveness, and the Security Instruments.
1.2    Additional Definitions. Section 1.02 of the Credit Agreement shall be
amended to add the following definitions to such Section in appropriate
alphabetical order:
“Proved Developed Producing Reserves” or “PDP” means “proved developed producing
oil and gas reserves” as such term is defined by the SEC in its standards and
guidelines.

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“Proved Reserves” or “TP” means collectively, “proved oil and gas reserves,”
“proved developed producing oil and gas reserves,” “proved developed
non-producing oil and gas reserves” (consisting of proved developed shut-in oil
and gas reserves and proved developed behind pipe oil and gas reserves), and
“proved undeveloped oil and gas reserves,” as such terms are defined by the SEC
in its standards and guidelines.
“Sixth Amendment” means that certain Sixth Amendment to Eighth Restated Credit
Agreement dated effective as December 1, 2011, among Parent, Borrowers,
Administrative Agent and the Lenders party thereto.
1.3    Amendment to Swap Agreements Covenant. Section 9.18 of the Credit
Agreement shall be amended and restated in its entirety to read in full as
follows:
“Section 9.18    Swap Agreements. Parent and the Borrowers will not, and will
not permit any other Credit Party to, at any time:
(a)    enter into any Swap Agreements with any Person other than:
(i) Swap Agreements in respect of commodities (A) with an Approved Counterparty
and (B) which shall not, in any case, have a tenor of greater than five and
one-half (5.5) years and the notional volumes for which (when aggregated with
other commodity Swap Agreements then in effect other than basis differential
swaps on volumes already hedged pursuant to other Swap Agreements) (1) do not
exceed at any time such Swap Agreement is in effect, one hundred percent (100%)
of the reasonably anticipated projected production from Proved Reserves of Oil
and Gas Properties of the Credit Parties set forth in the most recent Reserve
Report delivered to Administrative Agent hereunder (as such report may be
supplemented from time to time by the Credit Parties delivering to
Administrative Agent updated well projections and other information reflecting
the drilling activity, acquisitions, dispositions and other results of
operations since the effective date of such Reserve Report) for each of oil, gas
and natural gas liquids, calculated separately, and (2) do not exceed, as of the
date such Swap Agreement is executed, the applicable percentage set forth in the
table below of the reasonably anticipated projected production (x) from Proved
Reserves of oil and gas (but not natural gas liquids) of the Credit Parties for
up to 36 months following such date of execution, (y) from Proved Developed
Producing Reserves of natural gas liquids of the Credit Parties for up to 24
months following the date of execution, and (z) from Proved Developed Producing
Reserves of oil and gas (but not natural gas liquids) of the Credit Parties for
months 37 to 66 following such date of execution, in each case for Oil and Gas
Properties of the Credit Parties set forth in the most recent Reserve Report
delivered to Administrative Agent hereunder (as such report may be supplemented
from time to time by the Credit Parties delivering to Administrative Agent
updated well projections and other information reflecting the drilling activity,
acquisitions, dispositions and other results of operations since the effective
date of such Reserve Report) and for volumes of each of oil, gas and natural gas
liquids, calculated separately, for each month during the period during which
such Swap Agreement is in effect:

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Period 
(relative to execution date of relevant Swap Agreement)
Percentage Limitation
Oil
Gas
NGL
Months 1-12
90% TP
90% TP
70% PDP
Months 13-24
85% TP
85% TP
70% PDP
Months 25-36
65% TP
65% TP
0.0% TP
Months 37-66
100% PDP
100% PDP
0.0% TP

provided, that any Credit Party may enter into Swap Agreement consisting solely
of a floor price (i.e., floor, put or option) so long as the amount of
Hydrocarbons that are the subject of any such Swap Agreement in existence at any
such time do not exceed one-hundred percent (100%) of such Credit Party’s
reasonably anticipated projected production from Proved Reserves during the term
of any such existing Swap Agreement; provided further, that any Swap Agreement
entered into with respect to reasonably anticipated projected production of
natural gas liquids may be in the form of Swap Agreements for additional crude
oil volumes as a substitute for hedging natural gas liquids so long as such
crude oil volumes hedged are identified and consistently reported as natural gas
liquids Swap Agreements for purposes of compliance with this Section 9.18; and
(ii) Swap Agreements in respect of interest rates with an Approved Counterparty,
the notional amounts of which (when aggregated with all other Swap Agreements of
the Credit Parties’ then in effect in respect of interest rates) do not exceed
100% of the then outstanding principal amount of the Credit Parties’ Debt for
borrowed money, and which Swap Agreements shall not, in any case, have a tenor
of greater than five (5) years.
(b)    be a party to any Swap Agreement which contains any requirement,
agreement or covenant for any Credit Party to post cash or other collateral or
margin (including in the form of a letter of credit) to secure its/their
obligations under such Swap Agreement or to cover market exposures.
(c)    terminate any Swap Agreement in respect of commodities (including, as
applicable, any trade confirmations made pursuant thereto), now existing or
hereafter arising, without the prior written consent of the Required Lenders
except to the extent such terminations are permitted by Section 9.12.”
SECTION 2.    Conditions Precedent. The effectiveness of the amendments to the
Credit Agreement contained in Section 1 hereof, is subject to the satisfaction
of each of the following conditions precedent:
2.1    No Default or Borrowing Base Deficiency. No Default or Event of Default
shall have occurred which is continuing and the total Credit Exposures of all
Lenders shall not exceed the Borrowing Base.
2.2    Other Documents. Administrative Agent shall have been provided with such
other documents, instruments and agreements, and Parent and Borrowers shall have
taken such actions, as Administrative Agent may reasonably require in connection
with this Sixth Amendment and the transactions contemplated hereby.

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SECTION 3.    Representations and Warranties of Borrowers. To induce the Lenders
and Administrative Agent to enter into this Sixth Amendment, Parent and
Borrowers hereby jointly and severally represent and warrant to the Lenders and
Administrative Agent as follows:
3.1    Reaffirm Existing Representations and Warranties. Each representation and
warranty of each Credit Party contained in the Credit Agreement and the other
Loan Documents is true and correct on the date hereof and will be true and
correct after giving effect to the amendments set forth in Section 1 hereof,
except to the extent such representations and warranties are expressly limited
to an earlier date, in which case such representations and warranties shall be
true and correct as of such specified earlier date.
3.2    Due Authorization; No Conflict. The execution, delivery and performance
by Parent and Borrowers of this Sixth Amendment are within Parent’s and
Borrowers’ corporate and limited liability company powers (as applicable), have
been duly authorized by all necessary action, require no action by or in respect
of, or filing with, any governmental body, agency or official and do not violate
or constitute a default under any provision of applicable law or any material
agreement binding upon Parent, any Borrower or any other Credit Party or result
in the creation or imposition of any Lien upon any of the assets of Parent, any
Borrower or any other Credit Party except Excepted Liens.
3.3    Validity and Enforceability. This Sixth Amendment constitutes the valid
and binding obligation of Parent and Borrowers enforceable in accordance with
its terms, except as (i) the enforceability thereof may be limited by
bankruptcy, insolvency or similar laws affecting creditor’s rights generally,
and (ii) the availability of equitable remedies may be limited by equitable
principles of general application.
3.4    No Default, Event of Default or Borrowing Base Deficiency. No Default or
Event of Default has occurred which is continuing and the total Credit Exposures
of all Lenders do not exceed the Borrowing Base.
SECTION 4.    Miscellaneous.
4.1    Reaffirmation of Loan Documents; Extension of Liens. Any and all of the
terms and provisions of the Credit Agreement and the Loan Documents shall,
except as amended and modified hereby, remain in full force and effect. The
amendments contemplated hereby shall not limit or impair any Liens securing the
Indebtedness, each of which are hereby ratified, affirmed and extended to secure
the Indebtedness after giving effect to this Sixth Amendment.
4.2    Parties in Interest. All of the terms and provisions of this Sixth
Amendment shall bind and inure to the benefit of the parties hereto and their
respective successors and assigns.
4.3    Legal Expenses. Parent and Borrowers hereby jointly and severally agree
to pay on demand all reasonable fees and expenses of counsel to Administrative
Agent incurred by Administrative Agent in connection with the preparation,
negotiation and execution of this Sixth Amendment and all related documents.
4.4    Counterparts. This Sixth Amendment may be executed in counterparts, and
all parties need not execute the same counterpart; however, no party shall be
bound by this Sixth Amendment until Parent, Borrowers and the Required Lenders
have executed a counterpart. Facsimiles or other electronic transmission shall
be effective as originals.

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4.5    Complete Agreement. THIS SIXTH AMENDMENT, THE CREDIT AGREEMENT AND THE
OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT
BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR ORAL AGREEMENTS OF THE
PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN OR AMONG THE PARTIES.
4.6    Headings. The headings, captions and arrangements used in this Sixth
Amendment are, unless specified otherwise, for convenience only and shall not be
deemed to limit, amplify or modify the terms of this Sixth Amendment, nor affect
the meaning thereof.
4.7    Effectiveness. This Sixth Amendment shall be effective automatically and
without necessity of any further action by Parent, Borrowers, Administrative
Agent or Lenders when counterparts hereof have been executed by Parent,
Borrowers, Administrative Agent and the Required Lenders, and all conditions to
the effectiveness hereof set forth herein have been satisfied.
4.8    Governing Law. This Sixth Amendment shall be governed by, and construed
in accordance with, the laws of the State of New York.
IN WITNESS WHEREOF, the parties hereto have caused this Sixth Amendment to be
duly executed by their respective Responsible Officers on the date and year
first above written.
[Signature pages to follow]

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PARENT:
 
CHAPARRAL ENERGY, INC.,
 
 
a Delaware corporation
 
 
 
 
 
By:
 
/s/ Mark A. Fischer
 
 
 
 
Mark A. Fischer, Chief Executive Officer and President
 
 
BORROWERS:
 
CHAPARRAL ENERGY, L.L.C.
 
 
CHAPARRAL RESOURCES, L.L.C.
 
 
CHAPARRAL CO2, L.L.C.
 
 
CEI ACQUISITION, L.L.C.
 
 
CEI PIPELINE, L.L.C.
 
 
CHAPARRAL REAL ESTATE, L.L.C.
 
 
CHAPARRAL EXPLORATION, L.L.C.
 
 
ROADRUNNER DRILLING, L.L.C.
 
 
 
 
 
By:
 
/s/ Mark A. Fischer
 
 
 
 
Mark A. Fischer, Manager
 
 
 
 
GREEN COUNTRY SUPPLY, INC.
 
 
 
 
 
By:
 
/s/ Mark A. Fischer
 
 
 
 
Mark A. Fischer, Chief Executive Officer and President

 

Signature Page
SIXTH AMENDMENT TO EIGHTH RESTATED CREDIT AGREEMENT
CHAPARRAL ENERGY, INC.

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ADMINISTRATIVE AGENT/LENDER:
 
JPMORGAN CHASE BANK, N.A.,
 
 
as Administrative Agent and a Lender
 
 
 
 
 
By:
 
/s/ Correne S. Loeffler
 
 
 
 
Correne S. Loeffler
 
 
 
 
Authorized Officer

 

Signature Page
SIXTH AMENDMENT TO EIGHTH RESTATED CREDIT AGREEMENT
CHAPARRAL ENERGY, INC.

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CAPITAL ONE, NATIONAL ASSOCIATION,
 
 
as a Lender
 
 
 
 
 
By:
 
/s/ Michael Higgins
 
 
Name:
 
Michael Higgins
 
 
Title:
 
Vice President

 

Signature Page
SIXTH AMENDMENT TO EIGHTH RESTATED CREDIT AGREEMENT
CHAPARRAL ENERGY, INC.

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ROYAL BANK OF CANADA,
 
 
as a Lender
 
 
 
 
 
By:
 
/s/ Mark Lumpkin, Jr.
 
 
Name:
 
Mark Lumpkin, Jr.
 
 
Title:
 
Authorized Signatory

 

Signature Page
SIXTH AMENDMENT TO EIGHTH RESTATED CREDIT AGREEMENT
CHAPARRAL ENERGY, INC.

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UBS LOAN FINANCE LLC,
 
 
as a Lender
 
 
 
 
 
By:
 
/s/ Irja R. Otsa
 
 
Name:
 
Irja R. Otsa
 
 
Title:
 
Associate Director
 
 
 
 
 
By:
 
/s/ Mary E. Evans
 
 
Name:
 
Mary E. Evans
 
 
Title:
 
Associate Director

 

Signature Page
SIXTH AMENDMENT TO EIGHTH RESTATED CREDIT AGREEMENT
CHAPARRAL ENERGY, INC.

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CREDIT AGRICOLE CORPORATE AND
 
 
INVESTMENT BANK,
 
 
as a Lender
 
 
 
 
 
By:
 
/s/ Mark Roche
 
 
Name:
 
Mark Roche
 
 
Title:
 
Managing Director
 
 
 
 
 
By:
 
/s/ Michael D. Willis
 
 
Name:
 
Michael D. Willis
 
 
Title:
 
Managing Director

 

Signature Page
SIXTH AMENDMENT TO EIGHTH RESTATED CREDIT AGREEMENT
CHAPARRAL ENERGY, INC.

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SOCIÉTÉ GÉNÉRALE,
 
 
as a Lender
 
 
 
 
 
By:
 
 
 
 
Name:
 
 
 
 
Title:
 
 

 

Signature Page
SIXTH AMENDMENT TO EIGHTH RESTATED CREDIT AGREEMENT
CHAPARRAL ENERGY, INC.

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WELLS FARGO BANK, N.A.,
 
 
as a Lender
 
 
 
 
 
By:
 
/s/ Catherine Stacy
 
 
Name:
 
Catherine Stacy
 
 
Title:
 
Vice President

 

Signature Page
SIXTH AMENDMENT TO EIGHTH RESTATED CREDIT AGREEMENT
CHAPARRAL ENERGY, INC.

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THE BANK OF NOVA SCOTIA,
 
 
as a Lender
 
 
 
 
 
By:
 
/s/ John Frazell
 
 
Name:
 
John Frazell
 
 
Title:
 
Director

 

Signature Page
SIXTH AMENDMENT TO EIGHTH RESTATED CREDIT AGREEMENT
CHAPARRAL ENERGY, INC.

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BANK OF SCOTLAND plc,
 
 
as a Lender
 
 
 
 
 
By:
 
 
 
 
Name:
 
 
 
 
Title:
 
 

 

Signature Page
SIXTH AMENDMENT TO EIGHTH RESTATED CREDIT AGREEMENT
CHAPARRAL ENERGY, INC.

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COMERICA BANK,
 
 
as a Lender
 
 
 
 
 
By:
 
/s/ Katya Evseev
 
 
Name:
 
Katya Evseev
 
 
Title:
 
Corporate Banking Officer

 

Signature Page
SIXTH AMENDMENT TO EIGHTH RESTATED CREDIT AGREEMENT
CHAPARRAL ENERGY, INC.

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NATIXIS,
 
 
as a Lender
 
 
 
 
 
By:
 
/s/ Liana Tchernysheva
 
 
Name:
 
Liana Tchernysheva
 
 
Title:
 
Managing Director
 
 
 
 
 
By:
 
/s/ Donovan C. Broussard
 
 
Name:
 
Donovan C. Broussard
 
 
Title:
 
Managing Director

 

Signature Page
SIXTH AMENDMENT TO EIGHTH RESTATED CREDIT AGREEMENT
CHAPARRAL ENERGY, INC.

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MACQUARIE BANK LIMITED,
 
 
as a Lender
 
 
 
 
 
By:
 
 
 
 
Name:
 
 
 
 
Title:
 
 
 
 
 
 
 
By:
 
 
 
 
Name:
 
 
 
 
Title:
 
 

 

Signature Page
SIXTH AMENDMENT TO EIGHTH RESTATED CREDIT AGREEMENT
CHAPARRAL ENERGY, INC.

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AMEGY BANK NATIONAL ASSOCIATION,
 
 
as a Lender
 
 
 
 
 
By:
 
/s/ Terry Owen McCarter
 
 
Name:
 
Terry Owen McCarter
 
 
Title:
 
SVP

 

Signature Page
SIXTH AMENDMENT TO EIGHTH RESTATED CREDIT AGREEMENT
CHAPARRAL ENERGY, INC.

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COMPASS BANK,
 
 
as a Lender
 
 
 
 
 
By:
 
/s/ Ian Payne
 
 
Name:
 
Ian Payne
 
 
Title:
 
Vice President

 

Signature Page
SIXTH AMENDMENT TO EIGHTH RESTATED CREDIT AGREEMENT
CHAPARRAL ENERGY, INC.

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CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH,
 
 
as a Lender
 
 
 
 
 
By:
 
/s/ Mikhail Faybusovich
 
 
Name:
 
Mikhail Faybusovich
 
 
Title:
 
Director
 
 
 
 
 
By:
 
/s/ Vipul Dhadda
 
 
Name:
 
Vipul Dhadda
 
 
Title:
 
Associate

 

Signature Page
SIXTH AMENDMENT TO EIGHTH RESTATED CREDIT AGREEMENT
CHAPARRAL ENERGY, INC.

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ING CAPITAL LLC,
 
 
as a Lender
 
 
 
 
 
By:
 
/s/ Juli Bieser
 
 
Name:
 
Juli Bieser
 
 
Title:
 
Director

 

Signature Page
SIXTH AMENDMENT TO EIGHTH RESTATED CREDIT AGREEMENT
CHAPARRAL ENERGY, INC.

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KEYBANK NATIONAL ASSOCIATION,
 
 
as a Lender
 
 
 
 
 
By:
 
/s/ David Morris
 
 
Name:
 
David Morris
 
 
Title:
 
Vice President

 

Signature Page
SIXTH AMENDMENT TO EIGHTH RESTATED CREDIT AGREEMENT
CHAPARRAL ENERGY, INC.

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UNION BANK, N.A.,
 
 
as a Lender
 
 
 
 
 
By:
 
/s/ Whitney Randolph
 
 
Name:
 
Whitney Randolph
 
 
Title:
 
Vice President

 

Signature Page
SIXTH AMENDMENT TO EIGHTH RESTATED CREDIT AGREEMENT
CHAPARRAL ENERGY, INC.

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U.S. BANK NATIONAL ASSOCIATION,
 
 
as a Lender
 
 
 
 
 
By:
 
 
 
 
Name:
 
 
 
 
Title:
 
 

 

Signature Page
SIXTH AMENDMENT TO EIGHTH RESTATED CREDIT AGREEMENT
CHAPARRAL ENERGY, INC.