Neptune Energy Group Midco Ltd. (Neptune) has announced acquisitions that should boost its production and reserves. Although we expect these acquisitions to improve the company's business over time, leverage will increase, potentially exceeding its net debt to EBITDA guidance of 1.5x in 2020. We are therefore affirming our 'BB-' issuer credit rating on Neptune and the 'BB-' issue rating on its $550 million notes. We also assigned our 'BB-' rating to the proposed $500 million notes due 2026. The positive outlook reflects that we could raise the rating if the company successfully integrates the newly acquired assets, while reducing leverage, creating headroom under its financial policy guidance. The increased reserve base should support increasing production in the next few years,
