EXHIBIT 99.2
FIRST AMENDMENT
TO
364-DAY CREDIT AGREEMENT
dated as of
January 21, 2005
among
PIONEER NATURAL RESOURCES COMPANY,
as the Borrower
JPMORGAN CHASE BANK,
as Administrative Agent
and
The Lenders Party Hereto
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BANK OF AMERICA, N.A., BARCLAYS BANK PLC, WELLS FARGO BANK,
NATIONAL ASSOCIATION, and WACHOVIA BANK, NATIONAL ASSOCIATION,
as Co-Documentation Agents
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J.P. MORGAN SECURITIES INC.,
as Lead Arranger and Sole Bookrunner
THIS FIRST AMENDMENT TO 364-DAY CREDIT AGREEMENT (this "First Amendment")
dated as of January 21, 2005, among PIONEER NATURAL RESOURCES COMPANY, a
Delaware corporation, as the Borrower, JPMORGAN CHASE BANK, as Administrative
Agent, the LENDERS party hereto, BANK OF AMERICA, N.A., BARCLAYS BANK PLC, WELLS
FARGO BANK, NATIONAL ASSOCIATION, AND WACHOVIA BANK, NATIONAL ASSOCIATION, as
Co-Documentation Agents, and J.P. MORGAN SECURITIES INC., as Lead Arranger and
Sole Bookrunner.
R E C I T A L S
A. The Borrower, the Administrative Agent, the Issuing Banks, the Lenders
party thereto, the Co-Documentation Agents, and the Lead Arranger and Sole
Bookrunner are parties to that certain 364-Day Credit Agreement dated as of
September 28, 2004 (the "Credit Agreement"), pursuant to which the Lenders have
made certain credit available to and on behalf of the Borrower.
B. The Borrower has requested and the Lenders have agreed to amend certain
provisions of the Credit Agreement.
C. NOW, THEREFORE, in consideration of the premises and the mutual
covenants herein contained, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:
Section 1. Defined Terms. Each capitalized term which is defined in the
Credit Agreement, but which is not defined in this First Amendment, shall have
the meaning ascribed such term in the Credit Agreement. Unless otherwise
indicated, all section references in this First Amendment refer to sections of
the Credit Agreement.
Section 2. Amendments to Credit Agreement.
2.1 Amendments to Section 1.01.
(a) The definition of "Agreement" in Section 1.01 of the Credit Agreement
is hereby amended in its entirety to read as follows:
"Agreement" means this Credit Agreement, as amended by the First
Amendment, as the same may from time to time be amended, modified,
supplemented or restated.
(b) The definition of "Consolidated EBITDAX" in Section 1.01 of the Credit
Agreement shall be amended to add the following at the end of clause (b)
thereof:
"; provided, however, non-cash income or gains in respect of deferred
revenue, production payments and other matters included in the definition
of Indebtedness shall not be subtracted from Consolidated Net Income under
this clause (b)."
(c) The following definitions are hereby added in Section 1.01 the Credit
Agreement where alphabetically appropriate to read as follows:
"Consolidated Net Tangible Assets" means, on any date, the aggregate
amount of total assets of the Borrower and its Subsidiaries, minus (a) all
current liabilities of the Borrower and its Subsidiaries (excluding current
liabilities included in the definition of Indebtedness and excluding
current liabilities attributable to commodities derivative contracts), (b)
all goodwill of the Borrower and its Subsidiaries and (c) current and long-
term assets attributable to commodities derivative contracts, all
determined on a consolidated basis in accordance with GAAP.
"First Amendment" means that certain First Amendment to Credit
Agreement dated as January 21, 2005 among the Borrower, the Administrative
Agent and the Lenders party thereto.
2.2 Amendment to Section 6.01. Section 6.01 of the Credit Agreement is
hereby amended to (a) delete the word "and" immediately preceding clause (ii)
and to replace such word with a semi-colon and (b) add the following clause
(iii) at the end thereof.
"; and (iii) Indebtedness of any Restricted Subsidiary in respect of
production payments, forward sales and similar arrangements referred to in
Section 6.02(g)."
2.3 Amendment to Section 6.02. The following clause (g) is hereby added to
Section 6.02 of the Credit Agreement.
"(g) production payments, forward sales and similar arrangements;
provided that the amount of Indebtedness attributable thereto does not
exceed fifteen percent (15%) of Consolidated Net Tangible Assets determined
as of the time each such production payment, forward sale or similar
arrangement is entered into and determined based upon the financial
statements then most recently delivered pursuant to Section 5.01(a) or (b),
and without reduction to Consolidated Net Tangible Assets on account of any
such production payment, forward sale or similar arrangement."
Section 3. Conditions Precedent. The effectiveness of this First Amendment
is subject to the receipt by the Administrative Agent of the following documents
and satisfaction of the other conditions specified in this Section 3:
3.1 Counterparts of First Amendment. The Administrative Agent shall have
received from the Borrower and the Required Lenders multiple counterparts (in
such number as may be requested by the Administrative Agent) of this First
Amendment signed on behalf of each such party.
3.2 No Default. No Default shall have occurred and be continuing as of the
date hereof, after giving effect to the terms of this First Amendment.
Section 4. Miscellaneous.
4.1 Confirmation. The provisions of the Credit Agreement, as amended by
this First Amendment, shall remain in full force and effect in accordance with
its terms following the effectiveness of this First Amendment.
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4.2 Ratification and Affirmation; Representations and Warranties. The
Borrower hereby (a) represents and warrants to the Lenders that as of the date
hereof, after giving effect to the terms of this First Amendment, (i) all of the
representations and warranties contained in each Loan Document to which it is a
party are true and correct, except to the extent any such representations and
warranties are expressly limited to an earlier date, in which case, such
representations and warranties shall continue to be true and correct in all
material respects as of such specified earlier date, and (ii) no Default has
occurred and is continuing.
4.3 Loan Document. This First Amendment is a "Loan Document" as defined and
described in the Credit Agreement and all of the terms and provisions of the
Credit Agreement, as amended by this First Amendment, relating to Loan Documents
shall apply hereto.
4.4 Counterparts. This First Amendment may be executed by one or more of
the parties hereto in any number of separate counterparts, and all of such
counterparts taken together shall be deemed to constitute one and the same
instrument. Delivery of this First Amendment by facsimile transmission shall be
effective as delivery of a manually executed counterpart hereof.
4.5 No Oral Agreement. This First Amendment, the Credit Agreement and the
other Loan Documents executed in connection therewith represent the final
agreement between the parties and may not be contradicted by evidence of prior,
contemporaneous, or unwritten oral agreements of the parties. There are no
subsequent oral agreements between the parties.
4.6 GOVERNING LAW. THIS FIRST AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS.
[SIGNATURES BEGIN NEXT PAGE]
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IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to
be duly executed as of the date first written above.
BORROWER: PIONEER NATURAL RESOURCES COMPANY
By: /s/ Richard P. Dealy
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Name: Richard P. Dealy
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Title: Executive Vice-President and CFO
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JPMORGAN CHASE BANK,
as a Lender and as Administrative Agent
By: /s/ Robert C. Mertensotto
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Name:
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Title:
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Lead Arranger and
Sole Bookrunner: J.P. MORGAN SECURITIES INC.
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By: /s/ George M. Serice
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Name: George M. Serice
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Title: Vice President
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Signature Page to First Amendment to 364-Day Credit Agreement
Documentation Agent & Lender: BANK OF AMERICA, N.A.
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By: /s/ Ronald E. McKaig
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Name: Ronald E. McKaig
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Title: Senior Vice President
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Documentation Agent & Lender: BARCLAYS BANK PLC
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By: /s/ Nicholas Bell
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Name: Nicholas Bell
Title: Director
Documentation Agent & Lender: WELLS FARGO BANK, NATIONAL ASSOCIATION
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By: /s/ David C. Brooks
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Name: David C. Brooks
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Title: Vice President
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Documentation Agent & Lender: WACHOVIA BANK, NATIONAL ASSOCIATION
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By: /s/ David Humphreys
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Name: David Humphreys
Title: Director
Signature Page to First Amendment to 364-Day Credit Agreement
Lenders: ABN AMRO
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By:
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Name:
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Title:
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By:
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Name:
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Title:
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CITIBANK, N.A.
By: /s/ Joronne Jeter
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Name: Joronne Jeter
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Title: Attorney-in-Fact
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CALYON NEW YORK BRANCH
By:
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Name:
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Title:
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By:
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Name:
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Title:
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Signature Page to First Amendment to 364-Day Credit Agreement
CREDIT SUISSE FIRST BOSTON,
acting through its Cayman Islands Branch
By: /s/ Vanessa Gomez
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Name: Vanessa Gomez
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Title: Vice President
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By: /s/ Cassandra Droogan
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Name: Cassandra Droogan
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Title: Associate
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DEUTSCHE BANK AG NEW YORK BRANCH
By: /s/ Michael Starmer-Smith
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Name: Michael Starmer-Smith
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Title: Managing Director
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By: /s/ Joel Makowsky
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Name: Joel Makowsky
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Title: Director
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THE BANK OF NOVA SCOTIA
By: /s/ William E. Zarrett
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Name: William E. Zarrett
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Title: Managing Director
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Signature Page to First Amendment to 364-Day Credit Agreement
SCOTIABANC INC.
By: /s/ William E. Zarrett
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Name: William E. Zarrett
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Title: Managing Director
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SUNTRUST BANK
By: /s/ Sean Roche
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Name: Sean Roche
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Title: Vice President
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UNION BANK OF CALIFORNIA, N.A.
By: /s/ Scott Myatt
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Name: Scott Myatt
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Title: Assistant Vice President
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Signature Page to First Amendment to 364-Day Credit Agreement
BNP PARIBAS
By: /s/ David Dodd
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Name: David Dodd
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Title: Director
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By: /s/ Betsy Jocher
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Name: Betsy Jocher
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Title: Vice President
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THE BANK OF NEW YORK
By: /s/ Craig J. Anderson
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Name: Craig J. Anderson
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Title: Vice President
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DNB NOR BANK ASA
By: /s/ Nils Fykse
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Name: Nils Fykse
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Title: Senior Vice President
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By: /s/ Stig Kristiansen
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Name: Stig Kristiansen
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Title: Vice President
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Signature Page to First Amendment to 364-Day Credit Agreement
MIZUHO CORPORATE BANK (USA)
By: /s/ Greg Botshon
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Name: Greg Botshon
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Title: Senior Vice President
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U.S. BANK NATIONAL ASSOCIATION
By: /s/ Mark E. Thompson
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Name: Mark E. Thompson
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Title: Vice President
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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED
By:
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Name:
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Title:
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HARRIS NESBITT FINANCING, INC. (fka BMO NESBITT
BURNS FINANCING, INC.)
By: /s/ James V. Ducote
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Name: James V. Ducote
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Title: Vice President
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Signature Page to First Amendment to 364-Day Credit Agreement
KBC BANK N.V.
By:
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Name:
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Title:
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By:
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Name:
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Title:
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TORONTO DOMINION (TEXAS) LLC
By: /s/ Neva Nesbitt
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Name: Neva Nesbitt
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Title: Authorized Agent
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UFJ BANK LIMITED
By: /s/ Clyde L. Redford
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Name: Clyde L. Redford
Title: Senior Vice President
Signature Page to First Amendment to 364-Day Credit Agreement