S&P upgrades Endeavor Energy

S&P said it upgraded Endeavor Energy Resources LP to BB-.

The agency also said it affirmed the BB- rating on the company's unsecured debt and revised the recovery rating to 3, indicating 50% to 70% expected default recovery.

Endeavor Energy has significantly increased scale while improving its cost structure and financial risk profile, S&P said.

Although spending is projected to exceed internally generated cash flow in 2019 and 2020, S&P said it expects the company to maintain relatively benign leverage metrics.

The stable outlook also reflects a view that Endeavor will continue to build on production and reserves while reducing costs and leverage, the agency said.

The upgrade broadly reflects Endeavor's rapidly growing production and reserve base in the Permian basin, continuous cost reductions and gradual improvement in leverage measures, S&P said.

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