Research Update: 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. The negative outlook reflects our view that credit measures will be weak for the rating through 2025 following Hilcorp's nearly $3.5 billion in executed or

...- 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....

Research Update