S&P: Denbury view to positive

Standard & Poor's said it revised the outlook on Denbury Resources Inc. to positive from stable and affirmed its BB corporate credit rating.

Denbury's senior subordinated debt rating remains unchanged at BB and the agency said it revised the recovery rating on this debt to 3, indicating 50% to 70% expected recovery in a default, from 4.

The agency said it revised the outlook to positive to reflect Denbury's solid operating performance developing its tertiary asset base.

Denbury's profitability will remain strong relative to similarly rated peers given that more than 90% of its production is weighted to robust oil prices, S&P said.

The ratings also consider the capital-intensive, high-cost nature of its tertiary oil operations, its aggressive capital spending program and negative free cash flow expectations for the next several years, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.