13. Subsequent Events

Hedging

In April 2017, the Company entered into the following crude oil derivative positions:



Period	Type of Contract	Crude Oil Volumes (in Bbls/d)	Weighted Average Sub-Floor Price ($/Bbl)		Weighted Average Floor Price ($/Bbl)		Weighted Average Ceiling Price ($/Bbl)
Q3 2017	Fixed Price Swaps	6,000				$53.28
Q4 2017	Fixed Price Swaps	6,000				$53.28
FY 2018	Three-Way Collars	6,000		$40.00		$50.00		$65.00

In order to obtain a higher weighted average ceiling price on the three-way collars, the Company incurred premiums of approximately $2.8 million, the payments for which are deferred until the applicable contracts settle on a monthly basis.

Sanchez Acquisition

In April 2017, the Company paid $9.8 million for the remaining outstanding leases that were not conveyed to the Company at the initial closing on December 14, 2016 or at the subsequent closing on January 9, 2017. The Company currently expects its allocation of the purchase price to the assets acquired and liabilities assumed as of the acquisition date will be finalized during the fourth quarter of 2017.

Ninth Amendment to Credit Agreement

On May 4, 2017, the Company entered into a ninth amendment to its credit agreement governing the revolving credit facility to, among other things (i) extend the maturity date of the revolving credit facility to May 4, 2022, subject to a springing maturity date of June 15, 2020 if the 7.50% Senior Notes have not been refinanced on or prior to such time, (ii) increase the maximum credit amount under the revolving credit facility from $1.0 billion to $2.0 billion, (iii) increase the borrowing base from $600.0 million to $900.0 million, of which $800.0 million has been committed by lenders, until the next redetermination thereof, (iv) replace the Total Secured Debt to EBITDA ratio covenant with a Total Debt to EBITDA ratio covenant that requires such ratio not to exceed 4.00 to 1.00, (v) remove the covenant requiring a minimum EBITDA to Interest Expense ratio, (vi) reduce the commitment fee from 0.50% to 0.375% when utilization of lender commitments is less than 50% of the borrowing base amount, (vii) remove the restriction from borrowing under the credit facility if the Company has or, after giving effect to the borrowing, will have a Consolidated Cash Balance in excess of $50.0 million, (viii) remove the mandatory repayment of borrowings to the extent the Consolidated Cash Balance exceeds $50.0 million if either (a) the Company’s ratio of Total Debt to EBITDA exceeds 3.50 to 1.00 or (b) the availability under the credit facility is equal to or less than 20% of the then effective borrowing base, (ix) permit the issuance of unlimited Senior Unsecured Debt, subject to certain conditions, including pro forma compliance with the Company’s financial covenants, and (x) increase certain covenant baskets and thresholds. The capitalized terms which are not defined in this note to the consolidated financial statements have the meaning given to such terms in the credit agreement.