U.S.-based oil and gas exploration and production (E&P) company Hilcorp Energy I L.P. announced that it expects its acquisition of British Petroleum's (BP) Alaska operations to close and indicated it was able to obtain seller financing. In our view, the transaction will materially increase the company's leverage due to the additional seller financing amid the ongoing weak commodity price environment. Additionally, we view Hilcorp's liquidity as modestly constrained given its approximately $1.2 billion pro forma draw on its revolving credit facility, which is due in November 2022. Our ratings on Hilcorp remain on CreditWatch, where we placed them with negative implications on Aug. 29, 2019. Hilcorp Energy I L.P. reiterated its intention to acquire all of BP's Alaska upstream operations
