...November 16, 2022 NEW YORK (S&P Global Ratings) Nov. 16, 2022--S&P Global Ratings today said that a U.S.-based privately-held oil and gas exploration and production company Hilcorp Energy I L.P.'s (HEI; ##+/ Stable/--) announced nearly $2.0 billion debt and cash-funded acquisition of Hilcorp San Juan L.P. (HSJ) from an affiliate is neutral for credit quality and, as such, does not affect our '##+' issuer credit rating or '##+' issue-level rating on its existing senior unsecured notes (recovery rating: '3'). HEI signed an agreement to acquire all the equity interests in HSJ, which owns and operates assets located primarily in the natural gas-focused San Juan Basin in New Mexico and Colorado, for cash consideration of $1.282 billion and the full repayment of the HSJ credit facility (around $705 million outstanding as of Nov. 14, 2022). HEI will fund the purchase price with a combination of cash on hand and borrowings on its recently amended revolving credit facility maturing in 2026, with...
