Fitch expects to rate Talos B-

Fitch Ratings said it expects to assign a B- long-term issuer rating to Talos Energy Inc. and Talos Production Inc. Fitch also gave an expected BB-/RR1 rating to the first-lien revolver and an expected B/RR3 rating to Talos’ proposed senior second-lien notes.

“Talos’ expected ratings reflect its relatively small, higher-margin, liquids focused asset profile with 2020 exit production guidance of 71 thousand barrels of oil equivalent per day (mboepd) to 73mboepd including 71% oil and the premium pricing to West Texas Intermediate (WTI) per barrel (bbl) received for its offshore liquids production,” Fitch said in a press release.

The ratings also reflect the successful execution of the proposed second-lien notes issuance and associated debt refinance, eliminating the refinancing risks for the revolver and the notes due 2022, the agency said.

The outlook is stable.

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