Research Update: U.K.-Based Oil And Gas Producer Neptune Energy Outlook To Stable On Expected Improved Leverage; 'BB-' Rating Affirmed

Neptune Energy Group Midco Ltd. (Neptune) performed well in 2020 and maintained funds from operations (FFO) to debt slightly above the 20% required for the rating, despite difficult industry conditions and some unexpected production outages. Following the upward revision of our oil and gas price assumptions, we expect Neptune to post FFO to debt of 32%-36% in 2021, which would give it sufficient headroom under the current rating. Therefore, we revised the outlook on our 'BB-' long-term issuer credit rating on Neptune to stable from negative and affirmed the rating. The stable outlook indicates that Neptune is likely to grow organically over the next 12 months, maintaining FFO to debt comfortably above 20%. The stable outlook indicates that over the

...- Neptune Energy Group Midco Ltd. (Neptune) performed well in 2020 and maintained funds from operations (FFO) to debt slightly above the 20% required for the rating, despite difficult industry conditions and some unexpected production outages. - Following the upward revision of our oil and gas price assumptions, we expect Neptune to post FFO to debt of 32%-36% in 2021, which would give it sufficient headroom under the current rating. - Therefore, we revised the outlook on our '##-' long-term issuer credit rating on Neptune to stable from negative and affirmed the rating. - The stable outlook indicates that Neptune is likely to grow organically over the next 12 months, maintaining FFO to debt comfortably above 20%....

Research Update