Research Update: Northern Oil And Gas Inc. Issuer Credit Rating Raised To 'CCC+' Following Debt Repurchases; Outlook Negative

U.S.-based exploration and production (E&P) company Northern Oil and Gas Inc. repurchased at least $130 million of the principal amount on its 2023 notes cumulatively since early 2020 for 95% of the original par value with a combination of preferred stock, cash, and common equity. Despite the debt reduction, we view the company's thin liquidity and potential for distressed exchanges as a meaningful risk. We are raising our issuer credit rating on Northern Oil and Gas Inc. to 'CCC+' from 'SD' (selective default). We are also raising the 2023 issue-level rating to 'B' from 'D'. The negative outlook on Northern Oil and Gas reflects our view that the company could execute additional below par debt repurchases or a restructuring that

...- U.S.-based exploration and production (E&P) company Northern Oil and Gas Inc. repurchased at least $130 million of the principal amount on its 2023 notes cumulatively since early 2020 for 95% of the original par value with a combination of preferred stock, cash, and common equity. - Despite the debt reduction, we view the company's thin liquidity and potential for distressed exchanges as a meaningful risk. - We are raising our issuer credit rating on Northern Oil and Gas Inc. to '###+' from '##' (selective default). We are also raising the 2023 issue-level rating to 'B' from 'D'. - The negative outlook on Northern Oil and Gas reflects our view that the company could execute additional below par debt repurchases or a restructuring that we would view as distressed, given its tight liquidity profile....

Research Update