Hilcorp Downgraded To 'BB-' On Weak Credit Metrics, Ratings Remain On CreditWatch Negative On Proposed BP Acquisition

We expect U.S.-based exploration and production company Hilcorp Energy I L.P.'s credit measures will be below expectations for the rating through 2021, under our revised oil and gas price assumptions. Moreover, we believe it will be challenging to recover the $500 million already spent on the pending BP transaction if it doesn't close. We are lowering our issuer credit rating and unsecured debt ratings on Hilcorp to 'BB-' from 'BB+'. Our ratings on Hilcorp remain on CreditWatch with negative implications as we believe the company will either have higher leverage or weak liquidity if the transaction closes as proposed. NEW YORK (S&P Global Ratings) April 7, 2020—S&P Global Ratings today took the rating actions listed above. The CreditWatch negative reflects

...April 7, 2020 - We expect U.S.-based exploration and production company Hilcorp Energy I L.P.'s credit measures will be below expectations for the rating through 2021, under our revised oil and gas price assumptions. - Moreover, we believe it will be challenging to recover the $500 million already spent on the pending BP transaction if it doesn't close. - We are lowering our issuer credit rating and unsecured debt ratings on Hilcorp to '##-' from '##+'. - Our ratings on Hilcorp remain on CreditWatch with negative implications as we believe the company will either have higher leverage or weak liquidity if the transaction closes as proposed. NEW YORK (S&P Global Ratings) April 7, 2020--S&P Global Ratings today took the rating actions listed above. We estimate credit metrics will be weak for the rating over the next two years. Based on our revised oil and natural gas price deck assumptions (see "S&P Global Ratings Cuts WTI And Brent Crude Oil Price Assumptions Amid Continued Near-Term Pressure,"...

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