...April 5, 2022 - U.S.-based privately-held oil and gas exploration and production company Hilcorp Energy I L.P. announced the consolidation of its restricted and unrestricted subsidiaries as well as an offering of $800 million in senior unsecured notes to refinance the BP term loan. - We expect these factors and the company's priority of using free cash flow for debt paydown to greatly improve cash flow and leverage metrics. - As a result, we raised our issuer credit rating to '##+' from '##'. At the same time, we raised our '##' issue-level rating on the company's senior unsecured notes to '##+'. The '3' recovery rating is unchanged. - We assigned our '##+' issue-level rating and '3' recovery rating to Hilcorp Energy I LP and Hilcorp Finance Company's new senior unsecured notes due 2030 and 2032. - The stable outlook reflects our view that funds from operations (FFO) to debt will rise above 45% while debt to EBITDA declines below 2x on a consolidated basis for the next two years. NEW YORK...
