Debt

As of the dates indicated, long-term debt and financing leases consisted of the following:



	September 30, 2019			December 31, 2018
8.75% Senior Notes due 2023	$	300,000		$	300,000
Credit facility	110,000			—
Real estate mortgage note	—			8,588
Installment note payable	433			354
Financing lease obligations	1,487			11,677
Unamortized debt issuance costs	(10,816		)	(13,148		)
Total debt, net	401,104			307,471
Less current portion	586			12,371
Total long-term debt, net	$	400,518		$	295,100

As discussed in “Note 1: Nature of operations and summary of significant accounting policies,” upon the divestiture of our headquarters building in August 2019, we utilized the sale proceeds to pay off the outstanding balance of our real estate mortgage note which was $8,176 at the time of the repayment.

Our financing lease obligations as of December 31, 2018, included leases on CO₂ compressors that were subleased to the buyer of our former EOR oil and natural gas properties. In September 2019, U.S. Bank entered into agreements with the Sublessee which resulted in the discharge of all our obligations with respect to these compressor leases and the removal of the associated debt from our consolidated balance sheet in the amount of $9,832. Our remaining finance leases consist entirely of leases on our fleet vehicles.

Credit Agreement

Pursuant to our Credit Agreement (the “Credit Agreement”) with Royal Bank of Canada, as administrative agent and issuing bank, and the additional lenders party thereto, we have a $750,000 credit facility collateralized by our oil and natural gas properties and is scheduled to mature on December 21, 2022. Availability under our credit facility is subject to the financial covenants discussed below and a borrowing base based on the value of our oil and natural gas properties and set by the banks semi-annually on or around May 1 and November 1 of each year. Our borrowing base under the credit facility as of September 30, 2019, was $325,000.

As of September 30, 2019, our outstanding borrowings were accruing interest at the Adjusted LIBO Rate (as defined in the Credit Agreement, as defined below), plus the Applicable Margin (as defined in the Credit Agreement), which resulted in a weighted average interest rate of 4.34%.

The Credit Agreement contains financial covenants that require, for each fiscal quarter, we maintain: (1) a Current Ratio (as defined in the Credit Agreement) of no less than 1.00 to 1.00, and (2) a Ratio of Total Debt to EBITDAX (as defined in the Credit Agreement) of no greater than 4.0 to 1.0 calculated on a trailing four-quarter basis. We were in compliance with these financial covenants as of September 30, 2019.

The Credit Agreement contains covenants and events of default customary for oil and natural gas reserve-based lending facilities. Please see “Note 8: Debt” in “Item 8. Financial Statements and Supplementary Data” of our Annual Report on Form 10-K for the year ended December 31, 2018, for a discussion of the material provisions of our Credit Agreement.

On May 2, 2019, we entered into the Third Amendment to the Tenth Restated Credit Agreement (the “Credit Agreement”), among the Company and its subsidiaries, as borrowers, certain financial institutions party thereto, as lenders, and Royal Bank of Canada, as administrative agent (the “Third Amendment”). The Third Amendment, which was effective March 31, 2019, reaffirmed our borrowing base at the same level as it was at the beginning of 2019, at $325,000.

On September 27, 2019, we entered into the Fourth Amendment (the “Amendment”) to the Credit Agreement. The Amendment, among other things, (i) reaffirmed the borrowing base at $325,000; (ii) amended the definition of EBITDAX to, among other things, (a) added back losses related to or resulting from the full or partial extinguishment of debt, (b) expanded the add-back of amounts associated with retirements, severance or departure to apply to all employees or former employees, and (c) clarified that gains related to or resulting from the full or partial extinguishment of debt are excluded; and (iii) revised certain negative covenants to provide that the Company, under certain circumstances, may prepay or otherwise redeem certain Permitted Senior Additional Debt (as defined in the Credit Agreement) in an aggregate amount not to exceed $30,000.

Senior Notes

On June 29, 2018, we completed the issuance and sale at par of $300,000 in aggregate principal amount of our Senior Notes in a private placement under Rule 144A and Regulation S under the Securities Act of 1933, as amended. The Senior Notes bear interest at a rate of 8.75% per year beginning June 29, 2018 (payable semi-annually in arrears on January 15 and July 15 of each year, beginning on January 15, 2019) and will mature on July 15, 2023.

The Senior Notes are the Company’s senior unsecured obligations and rank equal in right of payment with all of the Company’s existing and future senior indebtedness, senior to all of the Company’s existing and future subordinated indebtedness and effectively subordinated to all of the Company’s existing and future secured indebtedness, to the extent of the value of the collateral securing such indebtedness.

The Senior Notes contain customary covenants, certain callable provisions and events of default. Please see “Note 8: Debt” in “Item 8. Financial Statements and Supplementary Data” of our Annual Report on Form 10-K for the year ended December 31, 2018, for a discussion of the material provisions of our Senior Notes.