Northern Oil And Gas Inc. Unsecured Note Rating Raised To 'CCC' From 'CCC-'; Recovery Rating Revised To '4' From '5'

NEW YORK (S&P Global Ratings) May 19, 2017--S&P Global Ratings today raised its issue-level rating on U.S.–based oil and gas exploration and production company Northern Oil and Gas Inc.'s senior unsecured notes to 'CCC' from 'CCC-', and revised the recovery rating to '4' from '5'. The '4' recovery rating indicates our expectation of average (30%-50%; rounded estimate: 30%) recovery for creditors in the event of a payment default. The company's lenders have reduced the borrowing base and commitments on Northern's reserve-based loan (RBL) facility to $325 million from $350 million, lowering expected priority debt. In addition, the company's PV-10 value of its proved reserves has increased meaningfully due to increased reserves over the past year using our recovery price deck

...NEW YORK (S&P Global Ratings) May 19, 2017--S&P Global Ratings today raised its issue-level rating on U.S.¡based oil and gas exploration and production company Northern Oil and Gas Inc.'s senior unsecured notes to '###' from '###-', and revised the recovery rating to '4' from '5'. The '4' recovery rating indicates our expectation of average (30%-50%; rounded estimate: 30%) recovery for creditors in the event of a payment default. The company's lenders have reduced the borrowing base and commitments on Northern's reserve-based loan (RBL) facility to $325 million from $350 million, lowering expected priority debt. In addition, the company's PV-10 value of its proved reserves has increased meaningfully due to increased reserves over the past year using our recovery price deck assumptions. RECOVERY ANALYSIS + Our analysis incorporates Northern's reduced $325 million borrowing base and commitment on the RBL facility. + Our simulated default scenario for Northern contemplates a sustained period...

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