. Entry Into a Material Definitive Agreement.
Credit Agreement Amendment
On
September 12, 2025, the Company entered into a First Amendment to Credit Agreement, together with certain of its subsidiaries party
thereto, the lenders and issuing banks party thereto and Truist Bank, as administrative agent and collateral agent (the “First
Amendment”), which amends that certain Credit Agreement, dated as of February 27, 2025, among the Company, the lenders and
issuing banks party thereto from time to time and Truist Bank, as administrative agent and collateral agent (as amended, restated,
supplemented or otherwise modified from time to time prior to the First Amendment, the “Credit Agreement” and, the
Credit Agreement as amended by the First Amendment, the “Amended Credit Agreement”). The First Amendment, among other
things, (a) removes the 0.10% per annum credit spread adjustment otherwise applicable to the determination of Term SOFR (as defined
in the Credit Agreement), (b) excludes up to $750,000,000 in principal amount of Borrowing Base Reduction Debt (as defined in the
Credit Agreement) issued prior to December 31, 2025 from the provisions otherwise requiring a borrowing base reduction as a result
of the issuance of such indebtedness, (c) if the Sabinal Acquisition closes on a date prior to the IKAV Acquisition, upon closing of
the Sabinal Acquisition and subject to conditions precedent set forth in the First Amendment, provides for (i) a $365,000,000
increase in the borrowing base under the Credit Agreement and (ii) the establishment and funding of term loan commitments in an
amount of $115,000,000, (d) if the IKAV Acquisition closes on a date prior to the Sabinal Acquisition, upon closing of the IKAV
Acquisition and subject to conditions precedent set forth in the First Amendment, provides for (i) a $500,000,000 increase in the
borrowing base under the Credit Agreement and (ii) the establishment and funding of term loan commitments in an amount of
$250,000,000, (e) upon closing of both the Sabinal Acquisition and the IKAV Acquisition (whether on the same date or different
dates) and subject to the conditions precedent set forth in the First Amendment, provides for (i) a $700,000,000 aggregate increase
in the borrowing base under the Credit Agreement and (ii) the establishment of aggregate term loan commitments (prior to giving
effect to any prior funding of term loans) in an amount of $450,000,000 and the funding of any unfunded term loan commitments
thereunder and (f) upon closing of either or both of the Sabinal Acquisition and the IKAV Acquisition an increase in the Aggregate
Elected Revolving Commitment Amount (as defined in the Credit Agreement) to $1,000,000,000.
1
Pursuant
to the Amended Credit Agreement, the Initial Term Loans (as defined in the Amended Credit Agreement) funded pursuant to the commitments
established by the First Amendment, will mature on February 27, 2029 and bear interest at a rate equal to, at the election of the Company,
Term SOFR (as defined in the Amended Credit Agreement) plus a margin of 4.00% per annum or ABR (as defined in the Amended Credit Agreement)
plus a margin of 3.00% per annum; provided that, in each case, the margin shall increase by 0.25% per annum on each three-month anniversary
of the first funding date of the Initial Term Loans. In addition, under the Amended Credit Agreement, the Initial Term Loans are required
to be prepaid with the proceeds of certain material issuances of indebtedness after the funding of the Initial Term Loans.
On
September 16, 2025, in connection with the closings of both the Sabinal Acquisition and the IKAV Acquisition on the same date, the term
loan commitments were fully funded in an amount equal to $450,000,000.
The
foregoing description of the First Amendment and the Amended Credit Agreement is a summary only, does not purport to be complete, and
is qualified in its entirety by reference to the full text of the First Amendment, which is filed herewith as Exhibit 10.1 to this Current
Report on Form 8-K (this “Current Report”) and incorporated herein by reference.
IKAV Purchase Agreement Amendment
On September 16, 2025, the
Company entered into that certain First Amendment to the IKAV Purchase Agreement (the “IKAV Purchase Agreement Amendment”)
with the IKAV Sellers, pursuant to which the IKAV Purchase Agreement was amended to reduce the Base Price (as defined in the IKAV Purchase
Agreement) payable to the IKAV Sellers by reducing the IKAV Unit Consideration (as defined herein) to 30,611,264 common units.
The foregoing description
of the IKAV Purchase Agreement Amendment is a summary only, does not purport to be complete and is qualified in its entirety by reference
to the full text of the IKAV Purchase Agreement Amendment, which is filed herewith as Exhibit 2.3 to this Current Report and incorporated
herein by reference.
Registration Rights
Agreement
The
disclosure set forth in Item 2.01 below regarding the Registration Rights Agreement (as defined below) is incorporated by reference into
this Item 1.01.