Fourth Supplemental Indenture, dated as of November 1, 2023, by and among Permian Resources Operating, LLC (formerly known as Centennial Resource Production, LLC), the guarantors party thereto and UMB Bank, N.A., as Trustee (5.375% Senior Notes due 2026)
Exhibit 4.3
Execution Version
FOURTH SUPPLEMENTAL INDENTURE IN RESPECT OF SUBSIDIARY GUARANTEES
BY AND AMONG
THE GUARANTOR PARTIES HERETO
PERMIAN RESOURCES OPERATING, LLC
and
UMB BANK, N.A.,
AS TRUSTEE,
DATED AS OF NOVEMBER 1, 2023
This Fourth Supplemental Indenture, dated as of November 1, 2023 (this Fourth Supplemental Indenture), is among Earthstone Operating, LLC, a Texas limited liability company, Earthstone Permian LLC, a Texas limited liability company, Sabine River Energy, LLC, a Texas limited liability company, Independence Resources Technologies, LLC, a Delaware limited liability company, Earthstone Oil & Gas Holdings, LLC, a Delaware limited liability company, Earthstone Oil & Gas Texas, LLC, a Delaware limited liability company, Earthstone Oil & Gas Northern Delaware, LLC, a Delaware limited liability company, Earthstone Energy Assets, LLC, a Delaware limited liability company, Earthstone Energy Operating, LLC, a Delaware limited liability company (collectively, the Additional Subsidiary Guarantors), Permian Resources Operating, LLC (as successor in interest to Centennial Resource Production, LLC), a Delaware limited liability company (together with its successors and assigns, the Company), each other existing guarantor (the Existing Guarantors, and together with the Additional Subsidiary Guarantors, the Guarantors) under the Indenture (as defined below), and UMB Bank, N.A., as trustee (the Trustee), under the Indenture.
W I T N E S S E T H:
WHEREAS, the Company and the Trustee have heretofore executed and delivered an Indenture, dated as of November 30, 2017 (the Base Indenture), by and among the Company, the Guarantors party thereto and the Trustee, providing for the issuance and establishing the terms of the Companys 5.375% Senior Notes due 2026 (the Notes);
WHEREAS, Permian Resources Corporation (as successor in interest to Centennial Resource Development, Inc.), a Delaware corporation (the Parent), and the Trustee have heretofore executed and delivered that certain First Supplemental Indenture, dated as of May 22, 2020 (the First Supplemental Indenture), which supplemented the Base Indenture, pursuant to which the Parent unconditionally guaranteed, on a joint and several basis with the other Guarantors, the Guaranteed Obligations, and Parent and the Trustee have heretofore executed and delivered that certain Second Supplemental Indenture, dated as of September 1, 2022 (the Second Supplemental Indenture) and that certain Third Supplemental Indenture, dated as of September 5, 2023 (the Third Supplemental Indenture), which supplemented the Base Indenture (the Base Indenture, as so supplemented by the First Supplemental Indenture, Second Supplemental Indenture and the Third Supplemental Indenture, the Indenture), pursuant to which the New Subsidiary Guarantors (as such term is defined therein) unconditionally guaranteed, on a joint and several basis with the other Guarantors, the Guaranteed Obligations;
WHEREAS, on the date hereof, pursuant to an Agreement and Plan of Merger, dated as of August 21, 2023, among the Company, Parent, Smits Merger Sub I Inc., a Delaware corporation and a direct wholly owned subsidiary of Parent (Merger Sub I), Smits Merger Sub II LLC, a Delaware limited liability company and a direct wholly owned subsidiary of Parent (Merger Sub II), Earthstone Energy, Inc., a Delaware corporation (Earthstone) and Earthstone Energy Holdings, LLC, a Delaware limited liability company (Earthstone OpCo), pursuant to which (i) Merger Sub I merged with and into Earthstone (the Initial Company Merger), with Earthstone surviving the Initial Company Merger as a wholly owned subsidiary of Parent (the Initial Surviving Corporation), (ii) following the Initial Company Merger, the Initial Surviving Corporation merged with and into Merger Sub II (the Subsequent Company Merger and, together with the Initial Company Merger, the Company Mergers), with Merger Sub II surviving the Subsequent Company Merger as a wholly owned subsidiary of Parent, and (iii) following the Company Mergers, Earthstone OpCo merged with and into the Company (the OpCo Merger,), with the Company surviving the OpCo Merger;
WHEREAS, Section 4.11 of the Base Indenture provides that, after the Issue Date, the Company is required to cause certain of its Subsidiaries to execute and deliver to the Trustee a supplemental indenture pursuant to which such Subsidiary will unconditionally guarantee, on a joint and several basis with the other guarantors, the Guaranteed Obligations;
WHEREAS, pursuant to Section 9.01(a)(8) of the Base Indenture, the Additional Subsidiary Guarantors, the Trustee, the Existing Guarantors and the Company are authorized to execute and deliver this Fourth Supplemental Indenture to amend or supplement the Indenture, the Notes, or the Guarantees, without the consent of any Holder; and
NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Additional Subsidiary Guarantors, the Company, the Existing Guarantors and the Trustee mutually covenant and agree for the equal and ratable benefit of the Holders as follows:
ARTICLE I
Definitions
SECTION 1.1 Defined Terms. Capitalized terms used but not defined in this Fourth Supplemental Indenture shall have the meanings ascribed to such terms in the Indenture. The words herein, hereof and hereby and other words of similar import used in this Fourth Supplemental Indenture refer to this Fourth Supplemental Indenture as a whole and not to any particular section hereof.
ARTICLE II
Agreement to be Bound; Guarantee
SECTION 2.1 Agreement to be Bound. Each Additional Subsidiary Guarantor hereby confirms it becomes a party to the Indenture as a Guarantor by its execution hereof and as such will have all of the rights and be subject to all of the obligations and agreements of a Guarantor under the Indenture. Each Guarantor hereby agrees to be bound by all of the terms, provisions and conditions of the Indenture, including Article 10, applicable to a Guarantor and to perform all of the obligations and agreements of a Guarantor under the Indenture.
SECTION 2.2 Guarantee. Pursuant to Article 10 of the Base Indenture, each Additional Subsidiary Guarantor hereby, on a joint and several basis with all the Existing Guarantors, irrevocably and unconditionally Guarantees, on a senior unsecured basis, to each Holder of the Securities and the Trustee and its successors and assigns, irrespective of the validity and enforceability of the Indenture, the Guaranteed Obligations when due, whether at Stated Maturity, by acceleration, redemption or otherwise.
ARTICLE III
Miscellaneous
SECTION 3.1 Notices. All notices and other communications to the Additional Subsidiary Guarantors shall be given as provided in Section 12.02 of the Base Indenture.
SECTION 3.2 Parties. Nothing expressed or mentioned herein is intended or shall be construed to give any Person, other than the Holders and the Trustee, any legal or equitable right, remedy or claim under or in respect of this Fourth Supplemental Indenture or the Indenture or any provision herein or therein contained.
SECTION 3.3 Governing Law; Jury Trial. THIS FOURTH SUPPLEMENTAL INDENTURE AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS FOURTH SUPPLEMENTAL INDENTURE WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. EACH OF THE COMPANY, EACH GUARANTOR AND THE TRUSTEE IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS FOURTH SUPPLEMENTAL INDENTURE OR THE TRANSACTIONS CONTEMPLATED HEREBY.
SECTION 3.4 Submission to Jurisdiction. Any legal suit, action or proceeding arising out of or based upon this Fourth Supplemental Indenture or the transactions contemplated hereby may be instituted in the federal courts of the United States of America located in the City of New York or the courts of the State of New York, in each case located in the City of New York (collectively, the Specified Courts), and each party irrevocably submits to the non-exclusive jurisdiction of such courts in any such suit, action or proceeding. Service of any process, summons, notice or document by mail (to the extent allowed under any applicable statute or rule of court) to such partys address set forth in Section 12.02 of the Base Indenture will be effective service of process for any such suit, action or proceeding brought in any such court. Each of the Company, each Guarantor, the Trustee and each Holder (by its acceptance of any Note) irrevocably and unconditionally waives any objection to the laying of venue of any suit, action or other proceeding in the Specified Courts and irrevocably and unconditionally waives and agrees not to plead or claim any such suit, action or other proceeding has been brought in an inconvenient forum.
SECTION 3.5 Severability Clause. If any provision of this Third Supplemental Indenture is invalid, illegal or unenforceable, then the validity, legality and enforceability of the remaining provisions of this Fourth Supplemental Indenture will not in any way be affected or impaired thereby.
SECTION 3.6 Ratification of Indenture; Fourth Supplemental Indenture Part of Indenture. Except as expressly amended hereby, the Indenture is in all respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and effect. This Fourth Supplemental Indenture shall form a part of the Indenture for all purposes, and every Holder of Securities heretofore or hereafter authenticated and delivered shall be bound hereby. The Trustee makes no representation or warranty as to the validity or sufficiency of this Fourth Supplemental Indenture or with respect to the recitals contained herein, all of which recitals are made solely by the other parties hereto.
SECTION 3.7 Counterparts. The parties may sign any number of copies of this Fourth Supplemental Indenture. Each signed copy will be an original, and all of them together represent the same agreement. Delivery of an executed counterpart of this Fourth Supplemental Indenture by facsimile, electronically in portable document format or in any other format will be effective as delivery of a manually executed counterpart.
SECTION 3.8 Headings. The headings of the Articles and Sections of this Fourth Supplemental Indenture have been inserted for convenience of reference only, are not to be considered a part of this Fourth Supplemental Indenture and will in no way modify or restrict any of the terms or provisions of this Fourth Supplemental Indenture.
SECTION 3.9 Trustees Disclaimer. The recitals contained herein shall be taken as the statements of the Company, and the Trustee assumes no responsibility for the correctness of the same. The Trustee makes no representation as to the validity or sufficiency of this Fourth Supplemental Indenture and shall not be liable in connection therewith. The Trustee accepts the amendments of the Indenture effected by this Fourth Supplemental Indenture, but on the terms and conditions set forth in the Indenture, including the terms and provisions defining and limiting the liabilities and responsibilities of the Trustee.
[Signature Pages Follow]
IN WITNESS WHEREOF, the parties hereto have caused this Fourth Supplemental Indenture to be duly executed as of the date first above written.
Earthstone Operating, LLC as an Additional Subsidiary Guarantor | ||
By: | /s/ Guy Oliphint | |
Name: | Guy Oliphint | |
Title: | EVP and Chief Financial Officer | |
Earthstone Permian LLC as an Additional Subsidiary Guarantor | ||
By: | /s/ Guy Oliphint | |
Name: | Guy Oliphint | |
Title: | EVP and Chief Financial Officer | |
Sabine River Energy, LLC as an Additional Subsidiary Guarantor | ||
By: | /s/ Guy Oliphint | |
Name: | Guy Oliphint | |
Title: | EVP and Chief Financial Officer | |
Independence Resources Technologies, LLC as an Additional Subsidiary Guarantor | ||
By: | /s/ Guy Oliphint | |
Name: | Guy Oliphint | |
Title: | EVP and Chief Financial Officer | |
Earthstone Oil & Gas Northern Delaware, LLC as an Additional Subsidiary Guarantor | ||
By: | /s/ Guy Oliphint | |
Name: | Guy Oliphint | |
Title: | EVP and Chief Financial Officer |
[Signature Page to Fourth Supplemental Indenture 2026 Senior Notes]
Earthstone Oil & Gas Texas, LLC as an Additional Subsidiary Guarantor | ||
By: | /s/ Guy Oliphint | |
Name: | Guy Oliphint | |
Title: | EVP and Chief Financial Officer | |
Earthstone Oil & Gas Holdings, LLC as an Additional Subsidiary Guarantor | ||
By: | /s/ Guy Oliphint | |
Name: | Guy Oliphint | |
Title: | EVP and Chief Financial Officer | |
Earthstone Energy Assets, LLC as an Additional Subsidiary Guarantor | ||
By: | /s/ Guy Oliphint | |
Name: | Guy Oliphint | |
Title: | EVP and Chief Financial Officer | |
Earthstone Energy Operating, LLC as an Additional Subsidiary Guarantor | ||
By: | /s/ Guy Oliphint | |
Name: | Guy Oliphint | |
Title: | EVP and Chief Financial Officer |
[Signature Page to Fourth Supplemental Indenture 2026 Senior Notes]
UMB BANK, N.A., | ||
as the Trustee | ||
By: | /s/ Mauri J. Cowen | |
Name: | Mauri J. Cowen | |
Title: | Senior Vice President |
[Signature Page to Fourth Supplemental Indenture 2026 Senior Notes]
Permian Resources Operating, LLC as the Company | ||
By: | /s/ Guy Oliphint | |
Name: | Guy Oliphint | |
Title: | EVP and Chief Financial Officer | |
Permian Resources Corporation as an Existing Guarantor | ||
By: | /s/ Guy Oliphint | |
Name: | Guy Oliphint | |
Title: | EVP and Chief Financial Officer | |
Atlantic Exploration, LLC as an Existing Guarantor | ||
By: | /s/ Guy Oliphint | |
Name: | Guy Oliphint | |
Title: | EVP and Chief Financial Officer | |
Centennial Resource Management, LLC as an Existing Guarantor | ||
By: | /s/ Guy Oliphint | |
Name: | Guy Oliphint | |
Title: | EVP and Chief Financial Officer | |
Colgate Ranch, LLC as an Existing Guarantor | ||
By: | /s/ Guy Oliphint | |
Name: | Guy Oliphint | |
Title: | EVP and Chief Financial Officer |
[Signature Page to Fourth Supplemental Indenture 2026 Senior Notes]
Tusker Midstream, LLC as an Existing Guarantor | ||
By: | /s/ Guy Oliphint | |
Name: | Guy Oliphint | |
Title: | EVP and Chief Financial Officer | |
Colgate Energy, LLC as an Existing Guarantor | ||
By: | /s/ Guy Oliphint | |
Name: | Guy Oliphint | |
Title: | EVP and Chief Financial Officer | |
Colgate Energy Development, LLC as an Existing Guarantor | ||
By: | /s/ Guy Oliphint | |
Name: | Guy Oliphint | |
Title: | EVP and Chief Financial Officer | |
Colgate Production, LLC as an Existing Guarantor | ||
By: | /s/ Guy Oliphint | |
Name: | Guy Oliphint | |
Title: | EVP and Chief Financial Officer | |
Colgate II Corp, LLC as an Existing Guarantor | ||
By: | /s/ Guy Oliphint | |
Name: | Guy Oliphint | |
Title: | EVP and Chief Financial Officer |
[Signature Page to Fourth Supplemental Indenture 2026 Senior Notes]
Colgate Royalties, LP as an Existing Guarantor By: Colgate II Corp, LLC, its general partner | ||
By: | /s/ Guy Oliphint | |
Name: | Guy Oliphint | |
Title: | EVP and Chief Financial Officer | |
Colgate Minerals, LLC as an Existing Guarantor | ||
By: | /s/ Guy Oliphint | |
Name: | Guy Oliphint | |
Title: | EVP and Chief Financial Officer | |
Tree Shaker Minerals, LLC as an Existing Guarantor | ||
By: | /s/ Guy Oliphint | |
Name: | Guy Oliphint | |
Title: | EVP and Chief Financial Officer | |
Hermosa Ranch, LLC as an Existing Guarantor | ||
By: | /s/ Guy Oliphint | |
Name: | Guy Oliphint | |
Title: | EVP and Chief Financial Officer | |
CL Energy, LLC as an Existing Guarantor | ||
By: | /s/ Guy Oliphint | |
Name: | Guy Oliphint | |
Title: | EVP and Chief Financial Officer |
[Signature Page to Fourth Supplemental Indenture 2026 Senior Notes]
Read & Stevens, Inc. as an Existing Guarantor | ||
By: | /s/ Guy Oliphint | |
Name: | Guy Oliphint | |
Title: | EVP and Chief Financial Officer | |
Permian Resources Management, LLC as an Existing Guarantor | ||
By: | /s/ Guy Oliphint | |
Name: | Guy Oliphint | |
Title: | EVP and Chief Financial Officer |
[Signature Page to Fourth Supplemental Indenture 2026 Senior Notes]