Exhibit 10.1

Execution Version

 

 

 

FIRST AMENDMENT

TO THE

CREDIT AGREEMENT

dated as of October 20, 2014

among

ENERGEN CORPORATION,

as Borrower,

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Administrative Agent,

THE GUARANTOR SIGNATORY HERETO,

and

THE LENDERS SIGNATORY HERETO

 

 

 

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FIRST AMENDMENT TO

CREDIT AGREEMENT

This FIRST AMENDMENT TO THE CREDIT AGREEMENT (this “First Amendment”), dated as
of October 20, 2014 (the “First Amendment Effective Date”), is among ENERGEN
CORPORATION, a corporation formed under the laws of the State of Alabama
(“Borrower”); the undersigned guarantor (the “Guarantor”, and together with
Borrower, the “Credit Parties”); each of the Lenders party hereto; and WELLS
FARGO BANK, NATIONAL ASSOCIATION, as administrative agent for the Lenders (in
such capacity, together with its successors in such capacity, “Administrative
Agent”).

Recitals

A. Borrower, Administrative Agent and the Lenders are parties to that certain
Credit Agreement dated as of September 2, 2014 (the “Credit Agreement”),
pursuant to which the Lenders have, subject to the terms and conditions set
forth therein, made certain credit available to and on behalf of Borrower.

B. The parties hereto desire to enter into this First Amendment to amend certain
terms of the Credit Agreement as set forth herein, to be effective as of the
First Amendment Effective Date.

C. NOW, THEREFORE, in consideration of the premises and the mutual covenants
herein contained, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

Section 1. Defined Terms. Each capitalized term which is defined in the Credit
Agreement, but which is not defined in this First Amendment, shall have the
meaning ascribed to such term in the Credit Agreement (as amended hereby).
Unless otherwise indicated, all section references in this First Amendment refer
to the Credit Agreement.

Section 2. Amendments to Credit Agreement. In reliance on the representations,
warranties, covenants and agreements contained in this First Amendment, and
subject to the satisfaction of the conditions precedent set forth in Section 3
hereof, the Credit Agreement shall be amended effective as of the First
Amendment Effective Date in the manner provided in this Section 2.

2.1 Additional Definition. Section 1.02 of the Credit Agreement is hereby
amended to add thereto in alphabetical order the following definition which
shall read in full as follows:

“Current Production” means the lesser of (a) the prior month’s production of
each of crude oil (including natural gas liquids and condensate) and natural
gas, calculated separately, of the Borrower and its Restricted Subsidiaries and
(b) the forecasted production, as reasonably determined by the Borrower, of each
of crude oil (including natural gas liquids and condensate) and natural gas,
calculated separately, of the Borrower and its Restricted Subsidiaries for each
month for the period ending no sooner than the latest month for which volumes

 

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are hedged under Swap Agreements. For purposes of entering into Swap Agreement
trades or transactions under Section 9.17(a)(i), forecasts of production made
pursuant to clause (b) above from the Borrower’s and its Restricted
Subsidiaries’ Oil and Gas Properties shall reflect the latest information
obtained by the Borrower or any of its Restricted Subsidiaries including the
Borrower’s or any of its Restricted Subsidiaries’ internal forecasts of
production decline rates for existing wells and additions to or deletions from
anticipated future production from new wells and completed acquisitions coming
on stream or from completed dispositions or failing to come on stream.

2.2 Amendments to Section 9.17.

(a) Section 9.17(a)(i) of the Credit Agreement is hereby amended and restated in
its entirety to read in full as follows:

(i) Swap Agreements in respect of commodities (x) with an Approved Counterparty
and (y) entered into not for speculative purposes, 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) do not exceed, as of the date such Swap Agreement is executed,
(1) for the period from 1 to 12 months after the date of execution of such Swap
Agreement, 110% of the Current Production for each month during the period
during which such Swap Agreement is in effect for each of crude oil (including
natural gas liquids and condensate) and natural gas, calculated separately (but
in no event to exceed 100% of the forecasted production, as reasonably
determined by the Borrower, of each of crude oil (including natural gas liquids
and condensate) and natural gas, calculated separately, of the Borrower and its
Restricted Subsidiaries for each such month), (2) for the period from 13 to 24
months after the date of execution of such Swap Agreement, 100% of the Current
Production for each month during the period during which such Swap Agreement is
in effect for each of crude oil (including natural gas liquids and condensate)
and natural gas, calculated separately, (3) for the period from 25 to 36 months
after such date of execution, 75% of the Current Production for each month
during the period during which such Swap Agreement is in effect for each of
crude oil (including natural gas liquids and condensate) and natural gas,
calculated separately, and (4) for the period from 37 to 60 months after such
date of execution, 50% of the Current Production for each month during the
period during which such Swap Agreement is in effect for each of crude oil
(including natural gas liquids and condensate) and natural gas, calculated
separately; provided, however, that (A) such Swap Agreements shall not, in any
case, have a tenor of greater than five (5) years and (B) (without duplication)
the Borrower and its Restricted Subsidiaries shall be permitted to enter into
Swap Agreements, trades or transactions with respect to reasonably anticipated
production of natural gas liquids and condensate by entering into Swap
Agreements, trades or transactions for crude oil on a conversion/equivalency
basis based on the then-existing market price differential between a volume unit
of crude oil to the same volume unit of natural gas liquids

 

2

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or condensate which conversion/equivalency calculation is reasonably acceptable
to the Administrative Agent. It is understood that Swap Agreements in respect of
commodities which may, from time to time, “hedge” the same volumes, but
different elements of commodity risk thereof, shall not be aggregated together
when calculating the foregoing limitations on notional volumes.

(b) Section 9.17(e) of the Credit Agreement is hereby deleted in its entirety.

Section 3. Conditions Precedent. The effectiveness of this First Amendment is
subject to the following:

3.1 Administrative Agent shall have received counterparts of this First
Amendment from the Credit Parties and the Majority Lenders.

3.2 Administrative Agent shall have received such other documents as
Administrative Agent or special counsel to Administrative Agent may reasonably
request.

Administrative Agent shall notify Borrower and the Lenders of the effectiveness
of this First Amendment, and such notice shall be conclusive and binding.

Section 4. Representations and Warranties; Etc. Each Credit Party hereby
affirms: (a) that as of the date hereof, the representations and warranties of
the Borrower and the Guarantor set forth in each Loan Document, shall be true
and correct in all material respects (or, if qualified by materiality or
Material Adverse Effect, in all respects), except to the extent any such
representations and warranties are expressly limited to an earlier date, in
which case, on and as of the date hereof, such representations and warranties
continue to be true and correct in all material respects (or, if qualified by
materiality or Material Adverse Effect, in all respects) as of such specified
earlier date and (b) that as of the date hereof, no Default or Event of Default
has occurred and is continuing or would result from this First Amendment.

Section 5. Miscellaneous.

5.1 Confirmation and Effect. The provisions of the Credit Agreement (as amended
by this First Amendment) shall remain in full force and effect in accordance
with its terms following the effectiveness of this First Amendment. Each
reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof’,
“herein”, or words of like import shall mean and be a reference to the Credit
Agreement as amended hereby, and each reference to the Credit Agreement in any
other document, instrument or agreement executed and/or delivered in connection
with the Credit Agreement shall mean and be a reference to the Credit Agreement
as amended hereby.

5.2 Ratification and Affirmation of Credit Parties. Each of the Credit Parties
hereby expressly (a) acknowledges the terms of this First Amendment,
(b) ratifies and affirms its obligations under the Guaranty Agreement and the
other Loan Documents to which it is a party, (c) acknowledges, renews and
extends its continued liability under the Guaranty Agreement and the other Loan
Documents to which it is a party (in each case, as amended hereby), and
(d) acknowledges and confirms that 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 First Amendment.

 

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5.3 Counterparts. This First Amendment may be executed by one or more of the
parties hereto in any number of separate counterparts, and all of such
counterparts taken together shall be deemed to constitute one and the same
instrument. Delivery of this First Amendment by facsimile or electronic (e.g.
pdf) transmission shall be effective as delivery of a manually executed original
counterpart hereof.

5.4 No Oral Agreement. This written First Amendment, the Credit Agreement and
the other Loan Documents executed in connection herewith and therewith represent
the final agreement between the parties and may not be contradicted by evidence
of prior, contemporaneous, or unwritten oral agreements of the parties. There
are no subsequent oral agreements between the parties.

5.5 Governing Law. This First Amendment (including, but not limited to, the
validity and enforceability hereof) shall be governed by, and construed in
accordance with, the laws of the State of New York.

5.6 Severability. Any provision of this First Amendment which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

5.7 Loan Document. This First Amendment shall constitute a “Loan Document” for
all purposes under the other Loan Documents.

[signature pages follow]

 

4

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IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be
duly executed effective as of the date first written above.

 

BORROWER:

 

ENERGEN CORPORATION

 

By:

 

  /s/ CHARLES W. PORTER, JR.

 

Name: Charles W. Porter, Jr.

 

Title:   Vice President, Chief Financial Officer and Treasurer

GUARANTOR:

 

ENERGEN RESOURCES CORPORATION

 

By:

 

  /s/ CHARLES W. PORTER, JR.

 

Name: Charles W. Porter, Jr.

 

Title:   Vice President, Chief Financial Officer and Treasurer

 

[SIGNATURE PAGE]

[FIRST AMENDMENT TO THE CREDIT AGREEMENT]

[ENERGEN CORPORATION]

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ADMINISTRATIVE AGENT:

 

WELLS FARGO BANK, NATIONAL ASSOCIATION,

 

as Administrative Agent, Issuing Bank and Lender

 

By:

 

  /s/ COLLIN MAYER

 

Name:

 

Collin Mayer

 

Title:

 

Assistant Vice President

 

[SIGNATURE PAGE]

[FIRST AMENDMENT TO THE CREDIT AGREEMENT]

[ENERGEN CORPORATION]

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SYNDICATION AGENT:

 

BANK OF AMERICA, N.A.,

 

as Syndication Agent and Lender

 

By:

 

  /s/ RONALD E. MCKAIG

 

Name:

 

Ronald E. Mckaig

 

Title:

 

Managing Director

 

[SIGNATURE PAGE]

[FIRST AMENDMENT TO THE CREDIT AGREEMENT]

[ENERGEN CORPORATION]

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CO-DOCUMENTATION AGENT:

 

COMPASS BANK,

 

as Co-Documentation Agent and Lender

 

By:

 

  /s/ ANN VAN WAGENER

 

Name:

 

Ann Van Wagener

 

Title:

 

Senior Vice President

 

[SIGNATURE PAGE]

[FIRST AMENDMENT TO THE CREDIT AGREEMENT]

[ENERGEN CORPORATION]

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CO-DOCUMENTATION AGENT:

 

JPMORGAN CHASE BANK, N.A.,

 

as Co-Documentation Agent and Lender

 

By:

 

  /s/ JO LINDA PAPADAKIS

 

Name:

 

Jo Linda Papadakis

 

Title:

 

Authorized Officer

 

[SIGNATURE PAGE]

[FIRST AMENDMENT TO THE CREDIT AGREEMENT]

[ENERGEN CORPORATION]

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CO-DOCUMENTATION AGENT:

 

REGIONS BANK,

 

as Co-Documentation Agent and Lender

 

By:

 

  /s/ WILLIAM A.PHILIPP

 

Name:

 

William A.Philipp

 

Title:

 

Senior Vice President

 

[SIGNATURE PAGE]

[FIRST AMENDMENT TO THE CREDIT AGREEMENT]

[ENERGEN CORPORATION]

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LENDERS:

 

MUFG UNION BANK, N.A.,

 

as Lender

 

By:

 

  /s/ MARK OBERREUTER

 

Name:

 

Mark Oberreuter

 

Title:

 

Vice President

 

[SIGNATURE PAGE]

[FIRST AMENDMENT TO THE CREDIT AGREEMENT]

[ENERGEN CORPORATION]

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CIBC Inc.,

as Lender

By:

 

  /s/ DARIA MAHONEY

Name:

 

Daria Mahoney

Title:

 

Authorized Signatory

By:

 

  /s/ WILLIAM M. REID

Name:

 

William M. Reid

Title:

 

Authorized Signatory

 

[SIGNATURE PAGE]

[FIRST AMENDMENT TO THE CREDIT AGREEMENT]

[ENERGEN CORPORATION]

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MIZUHO BANK, LTD.,

as Lender

By:

 

  /s/ LEON MO

Name:

 

Leon Mo

Title:

 

Authorized Signatory

 

[SIGNATURE PAGE]

[FIRST AMENDMENT TO THE CREDIT AGREEMENT]

[ENERGEN CORPORATION]

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PNC BANK, NATIONAL ASSOCIATION,

as Lender

By:

 

  /s/ JONATHAN LUCHANSKY

Name:

 

Jonathan Luchansky

Title:

 

Assistant Vice President

 

[SIGNATURE PAGE]

[FIRST AMENDMENT TO THE CREDIT AGREEMENT]

[ENERGEN CORPORATION]

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SUMITOMO MITSUI BANKING CORPORATION, as Lender

By:

 

  /s/ JAMES D. WEINSTEIN

Name:

 

James D. Weinstein

Title:

 

Managing Director

 

[SIGNATURE PAGE]

[FIRST AMENDMENT TO THE CREDIT AGREEMENT]

[ENERGEN CORPORATION]

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U.S. BANK NATIONAL ASSOCIATION,

as Lender

By:

 

  /s/ NICHOLAS T. HANFORD

Name:

 

Nicholas T. Hanford

Title:

 

Vice President

 

[SIGNATURE PAGE]

[FIRST AMENDMENT TO THE CREDIT AGREEMENT]

[ENERGEN CORPORATION]

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BRANCH BANKING AND TRUST COMPANY,

as Lender

By:

 

  /s/ RYAN AMAN

Name:

 

Ryan Aman

Title:

 

Vice President

 

[SIGNATURE PAGE]

[FIRST AMENDMENT TO THE CREDIT AGREEMENT]

[ENERGEN CORPORATION]

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BMO HARRIS BANK N. A.,

as Lender

By:

 

  /s/ MELISSA GUZMANN

Name:

 

Melissa Guzmann

Title:

 

Vice President

 

[SIGNATURE PAGE]

[FIRST AMENDMENT TO THE CREDIT AGREEMENT]

[ENERGEN CORPORATION]

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DNB CAPITAL LLC,

as Lender

By:

 

  /s/ JOE HYKLE

Name:

 

Joe Hykle

Title:

 

Senior Vice President

By:

 

  /s/ ASULV TVEIT

Name:

 

Asulv Tveit

Title:

 

Vice President

 

[SIGNATURE PAGE]

[FIRST AMENDMENT TO THE CREDIT AGREEMENT]

[ENERGEN CORPORATION]

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ROYAL BANK OF CANADA,

as Lender

By:

 

  /s/ KRISTAN SPIVEY

Name:

 

Kristan Spivey

Title:

 

Authorized Signatory

 

[SIGNATURE PAGE]

[FIRST AMENDMENT TO THE CREDIT AGREEMENT]

[ENERGEN CORPORATION]

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THE TORONTO DOMINION (NEW YORK) LLC, as Lender

By:

 

  /s/ MARIE FERNANDES

Name:

 

Marie Fernandes

Title:

 

Authorized Signatory

 

[SIGNATURE PAGE]

[FIRST AMENDMENT TO THE CREDIT AGREEMENT]

[ENERGEN CORPORATION]

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BOKF, NA DBA BANK OF OKLAHOMA,

as Lender

By:

 

  /s/ JOHN KRENGER

Name:

 

John Krenger

Title:

 

Assistant Vice President

 

[SIGNATURE PAGE]

[FIRST AMENDMENT TO THE CREDIT AGREEMENT]

[ENERGEN CORPORATION]

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CREDIT SUISSE AG, CAYMAN ISLANDS

BRANCH,

as Lender

By:

 

  /s/ MICHAEL SPAIGHT

Name:

 

Michael Spaight

Title:

 

Authorized Signatory

By:

 

  /s/ LINGZI HUANG

Name:

 

Lingzi Huang

Title:

 

Authorized Signatory

 

[SIGNATURE PAGE]

[FIRST AMENDMENT TO THE CREDIT AGREEMENT]

[ENERGEN CORPORATION]

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FIFTH THIRD BANK,

as Lender

By:

 

  /s/ JUSTIN B. CRAWFORD

Name:

 

Justin B. Crawford

Title:

 

Director

 

[SIGNATURE PAGE]

[FIRST AMENDMENT TO THE CREDIT AGREEMENT]

[ENERGEN CORPORATION]

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SYNOVUS BANK,

as Lender

By:

 

  /s/ DAVID W. BOWMAN

Name:

 

David W. Bowman

Title:

 

Senior Vice President

 

[SIGNATURE PAGE]

[FIRST AMENDMENT TO THE CREDIT AGREEMENT]

[ENERGEN CORPORATION]

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BARCLAYS BANK PLC,

as Lender

By:

 

  /s/ VANESSA KURBATSKIY

Name:

 

Vanessa Kurbatskiy

Title:

 

Vice President

 

[SIGNATURE PAGE]

[FIRST AMENDMENT TO THE CREDIT AGREEMENT]

[ENERGEN CORPORATION]

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MORGAN STANLEY BANK, N. A.,

as Lender

By:

 

  /s/ MATTHEW MEYERS

Name:

 

Matthew Meyers

Title:

 

Authorized Signatory

 

[SIGNATURE PAGE]

[FIRST AMENDMENT TO THE CREDIT AGREEMENT]

[ENERGEN CORPORATION]