S&P ups Endeavor Energy Resources

S&P said it upgraded Endeavor Energy Resources LP and its debt to BB from BB-. The recovery rating remains 3, reflecting an expectation of meaningful (50%-70%; rounded estimate: 65%) recovery in default.

“Endeavor has substantially increased its scale to levels comparable with BB rated peers while maintaining low leverage. The company produced 185 thousand barrels of oil equivalent per day (mboe/d) in the second quarter and reported 837 million (mm)boe of proved reserves (53% developed) at year-end 2020, making it one of the largest private oil and gas producers in the U.S.,” S&P said in a press release.

“We expect the rapid growth trajectory to continue in 2022 and beyond, with capital spending likely to increase next year as well. Nevertheless, we believe Endeavor will continue to maintain conservative financial metrics including average FFO/debt of around 100% and debt/EBITDA around 1x over the next two years; with the projections supported by its relatively low cash operating costs ($8.97/boe in the second quarter of 2021) and solid operational track record with an emphasis on organic growth,” the agency said.

The outlook is stable.

© 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.