Hilcorp Energy I L.P. Outlook Revised To Negative From Stable On $1.5 Billion Acquisition; 'BB+' Rating Affirmed

Texas-based oil and gas exploration and production partnership Hilcorp Energy I L.P. has agreed to acquire assets in the Permian Basin in Southeast New Mexico and West Texas for $1.5 billion. As with prior acquisitions, we have assumed the purchase price will be funded with debt, increasing near-term leverage. Consequently, we revised our rating outlook to negative from stable and affirmed our 'BB+' issuer credit rating on Hilcorp Energy. The negative outlook reflects weak credit measures for the rating through 2025, following Hilcorp's nearly $3.5 billion in executed or announced debt-financed acquisitions year to date. NEW YORK (S&P Global Ratings) Nov. 26, 2024--S&P Global Ratings today took the rating actions listed above. We revised our outlook to negative to reflect

...November 26, 2024 - Texas-based oil and gas exploration and production partnership Hilcorp Energy I L.P. has agreed to acquire assets in the Permian Basin in Southeast New Mexico and West Texas for $1.5 billion. - As with prior acquisitions, we have assumed the purchase price will be funded with debt, increasing near-term leverage. - Consequently, we revised our rating outlook to negative from stable and affirmed our '##+' issuer credit rating on Hilcorp Energy. - The negative outlook reflects weak credit measures for the rating through 2025, following Hilcorp's nearly $3.5 billion in executed or announced debt-financed acquisitions year to date. NEW YORK (S&P Global Ratings) Nov. 26, 2024--S&P Global Ratings today took the rating actions listed above. We revised our outlook to negative to reflect Hilcorp's increased leverage following three debt-funded acquisitions announced or completed year to date. So far in 2024, Hilcorp Energy has announced three acquisitions: a $1.0 billion acquisition...

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