Bulletin: Moss Creek Resources Holdings Inc. To Acquire Acreage In Midland Basin

NEW YORK (S&P Global Ratings) Feb. 9, 2021--S&P Global Ratings today said its ratings and outlook on Moss Creek Resources Holdings Inc. (CCC+/Negative/--) are unchanged following the company's announcement that it is acquiring Howard County acreage in the Midland Basin. The acquisition results in a moderate increase in scale by adding 18,010 net leasehold acres and 9,000 barrels of oil equivalent per day of net production. The transaction modestly weakens the company's near-term financial metrics, given its debt and cash funding, but it adds higher-quality acreage to the exploration and production company's portfolio and increases its drilling inventory. While the company has stated it does not intend to engage in any larger leveraging acquisitions in the near term, the company's

...February 9, 2021 NEW YORK (S&P Global Ratings) Feb. 9, 2021--S&P Global Ratings today said its ratings and outlook on Moss Creek Resources Holdings Inc. (###+/Negative/--) are unchanged following the company's announcement that it is acquiring Howard County acreage in the Midland Basin. The acquisition results in a moderate increase in scale by adding 18,010 net leasehold acres and 9,000 barrels of oil equivalent per day of net production. The transaction modestly weakens the company's near-term financial metrics, given its debt and cash funding, but it adds higher-quality acreage to the exploration and production company's portfolio and increases its drilling inventory. While the company has stated it does not intend to engage in any larger leveraging acquisitions in the near term, the company's total Howard County inventory remains limited. Moreover, we continue to view the pro forma decline rate in the 30% area, combined with maintenance capital spending and uncertainty regarding potential...

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