Parsley Energy Inc. on April 28 entered into an amendment to its revolving credit facility, which analysts said showcases the Permian shale producer’s strong credit quality.

The amendment reaffirmed Parsley’s $2.7 billion borrowing base, increases the elected commitment amount from $1 billion to $1.075 billion, and extends the maturity date by two years to fourth-quarter 2023, according to a release by the Austin, Texas-based company.

“The modest 8% expansion of its credit facility effective borrowing capacity will likely be a rare exception during a spring redetermination where many E&P companies will likely see banks cut their credit facility capacities in the neighborhood of 15%-35%, according to early indications,” Phillips Johnston, E&P analyst with Capital One Securities Inc., wrote in an April 28 research note.

Parsley Energy is an independent Permian operator with positions in the Midland and Delaware sub-basins. Earlier this year, the company closed a $2.3 billion all-stock acquisition of Jagged Peak Energy, which more than doubled Parsley’s Delaware position.

However, months after closing the multibillion-dollar transaction, Parsley released plans to scale back operations due to the slump in oil prices driven by the COVID-19 pandemic. Measures taken by the company include reducing its 2020 capex and voluntary pay cuts by all of Parsley's executive officers by at least 50%.

In a statement on April 28 commenting on the amended revolver, Parsley CFO Ryan Dalton said: “These liquidity enhancing measures are another example of the proactive steps Parsley has taken to weather the COVID-19-driven downturn.”

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