This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

PostRock Announces Additional White Deer Investment

OKLAHOMA CITY, Dec. 18, 2012 (GLOBE NEWSWIRE) -- PostRock Energy Corporation ("PostRock" or the "Company") (Nasdaq:PSTR) today announced that its Board had approved what is expected to be a final $13 million investment by White Deer Energy L.P. ("White Deer"). That brings White Deer's total investment in PostRock to $92.5 million. The investment is expected to fund on Thursday, December 20 th. White Deer agreed to acquire 4,577,464 shares of common stock at a price of $1.42 per share, yesterday's consolidated closing bid price. Simultaneously, White Deer agreed to purchase $6,500,000 of 12% cumulative redeemable preferred stock and 4,577,464 warrants to purchase common stock at a price of $1.42 a share. The specific terms of the investment are almost identical to White Deer's August investment. Proceeds will reduce debt.

The Company also updated the status of its hedge position. On November 27 th, PostRock monetized the last of its preexisting 2013 NYMEX gas swaps for $15.4 million. Combined with the recent previously announced hedge monetization, a total of $30.2 million of proceeds was realized in November. All of the proceeds were used to reduce debt. On December 12 th, the Company entered into new natural gas swaps covering periods from April 2013 through 2016. The following table summarizes its current hedge position.
  2013 2014 2015 2016
Natural Gas Hedges        
NYMEX Gas Swaps        
Volume (MMBtu) 3,747,285 4,324,032 3,755,184 3,765,840
Weighted Average Price ($/MMBtu) $3.95 $3.95 $3.95 $3.96
Southern Star Basis Swaps        
Volume (MMBtu) 9,000,003 -- -- --
Weighted Average Price ($/MMBtu) ($0.71) -- -- --
Oil Hedges        
NYMEX Oil Swaps        
Volume (Bbls) 65,892 61,680 58,164 53,892
Weighted Average Price ($/Bbl) $101.70 $97.00 $93.40 $91.10

The White Deer investment and the hedging transactions have positioned the Company to finalize a new credit facility. That transaction is expected to close later this week.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.68 -3.20%
FB $116.64 7.10%
GOOG $690.18 -2.20%
TSLA $248.28 -1.30%
YHOO $36.57 -1.00%


Chart of I:DJI
DOW 17,816.20 -225.35 -1.25%
S&P 500 2,076.57 -18.58 -0.89%
NASDAQ 4,810.8720 -52.2690 -1.07%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs