The Challenge:

Calyx Energy, an independent exploration and production company operating in the northern Arkoma Basin, faced the pressing need for additional financing to complete 8 drilled but uncompleted (DUC) wells and bolster operational liquidity. Engaging Opportune LLP on behalf of its lender group, Calyx sought financial advisory services to assess its business plan and 13-week cash flow forecast, essential for securing a Term Loan financing.

The Solution:

Opportune conducted a comprehensive review of Calyx's business plan model, focusing on proposed adjustments, risks, and potential upside. Additionally, Opportune performed a detailed analysis of the 13-week cash flow forecast, including week-to-week variance assessments and working capital summaries. These analyses provided crucial insights for the lender group, facilitating the approval of an additional $30.0 million under the Term Loan to complete the DUC wells and support short-term liquidity needs. Key procedures included optimizing the business plan model, identifying risks and opportunities, and presenting multiple business plan scenarios to assess profitability and cash flows post-DUC well completion. Regular meetings between Opportune, Calyx, and the lender group ensured alignment and timely decision-making.