S&P ups HighPoint Resources

S&P said it raised its corporate credit rating on HighPoint Energy Corp. to B from B- and removed it from CreditWatch, where S&P placed it with positive implications on Dec. 6. The outlook is stable.

S&P said it also raised its issue-level rating on the company's senior unsecured debt to B from CCC+ and removed the ratings from CreditWatch with positive implications. S&P revised the recovery rating on the senior unsecured debt to 3 from 5, indicating an expectation of meaningful (50% to 70%; rounded estimate: 50%) recovery in the event of a default.

“Our ratings on HighPoint, formerly known as Bill Barrett Corp., reflect our expectation of improved operational performance as a result of the successful equity-funded merger with Fifth Creek Energy Co. LLC as well as the completion of: an above-par $50 million debt for equity exchange and a $110.7 million public equity offering to fund its 2018 drilling program,” S&P said in a news release.

“Based on our expectation for significant production growth this year and in 2019, we anticipate credit metrics to strengthen over the next 12 to 24 months.”

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