Bulletin: Genesis Energy Ltd.'s Increased Share In Kupe Oilfield Joint Venture Does Not Affect Ratings

SYDNEY (S&P Global Ratings) Nov. 16, 2016--S&P Global Ratings said today that its issuer credit rating on Genesis Energy Ltd. (Genesis Energy, BBB+/Stable/--) is not affected following the company's announcement that it will acquire an additional 15% share of the Kupe oilfield joint venture from New Zealand Oil&Gas (NZOG, not rated) for NZ$168 million, subject to necessary regulatory approvals. This acquisition will increase Genesis Energy's interest in the Kupe joint venture to 46% and is likely to be completed by Jan. 1, 2017. Genesis Energy will fund the acquisition using its existing debt facilities. The company's debt-to-EBITDA could be closer to 3.0x for the year ending June 30, 2017, reflecting the contribution of the acquisition for only part

...SYDNEY (S&P Global Ratings) Nov. 16, 2016--S&P Global Ratings said today that its issuer credit rating on Genesis Energy Ltd. (Genesis Energy, ###+/Stable/--) is not affected following the company's announcement that it will acquire an additional 15% share of the Kupe oilfield joint venture from New Zealand Oil & Gas (NZOG, not rated) for NZ$168 million, subject to necessary regulatory approvals. This acquisition will increase Genesis Energy's interest in the Kupe joint venture to 46% and is likely to be completed by Jan. 1, 2017. Genesis Energy will fund the acquisition using its existing debt facilities. The company's debt-to-EBITDA could be closer to 3.0x for the year ending June 30, 2017, reflecting the contribution of the acquisition for only part of that year. However, we expect Genesis Energy to maintain debt-to-EBITDA in the range of 2.6x-2.7x on a normalized basis over the next couple of years after the acquisition. While this acquisition does not immediately affect the rating,...

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