Hilcorp Energy I, L.P. Ratings Affirmed On Improving Credit Metrics; Outlook Stable

We anticipate cash flow and credit metrics for Hilcorp Energy I, L.P., a U.S.-based privately held oil and gas exploration and production company, will strengthen over the next two years under our current price assumptions. We affirmed our 'BB+' issuer credit rating on Hilcorp. At the same time, we affirmed our 'BB+' issue-level rating on the company's senior unsecured notes. The '3' recovery rating is unchanged. The stable outlook reflects our view that funds from operations (FFO) to debt will increase to about 50%-55% while debt to EBITDA remains below 2x over the next two years, driven by supportive commodity prices and continued debt reduction. NEW YORK (S&P Global Ratings) April 14, 2023—S&P Global Ratings today took the rating actions

...April 14, 2023 - We anticipate cash flow and credit metrics for Hilcorp Energy I, L.P., a U.S.-based privately held oil and gas exploration and production company, will strengthen over the next two years under our current price assumptions. - We affirmed our '##+' issuer credit rating on Hilcorp. - At the same time, we affirmed our '##+' issue-level rating on the company's senior unsecured notes. The '3' recovery rating is unchanged. - The stable outlook reflects our view that funds from operations (FFO) to debt will increase to about 50%-55% while debt to EBITDA remains below 2x over the next two years, driven by supportive commodity prices and continued debt reduction. NEW YORK (S&P Global Ratings) April 14, 2023--S&P Global Ratings today took the rating actions listed above. The rating affirmation reflects our view that the company will continue to be focused on debt reduction following the consolidation of Hilcorp San Juan (HSJ). As of Dec. 31, 2022, the company had about $1.3 billion...

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