It means they have amended their credit agreement to accommodate a deleveraging event, which could include an asset sale, joint venture, debt repurchase, or an equity offering (hopefully not at this price). The company has stated that there are assets (power plant and mid-stream assets) that can be monetized in the $1.6 bn range. This might take the form of a sale/leaseback for the power plant or a JV or sale for the midstream assets. I suspect that we will know soon.
There is no question that CRC is a high risk play; if oil stabilizes higher, and if CRC is able to de-lever it's balance sheet then it will be worth a lot more. If we end up with sub-$40 oil then who knows if the equity has any value. I'm betting on CRC over $4 some time in the third quarter.