Moody’s upgrades Energen

Moody's Investors Service said it upgraded Energen Corp.'s corporate family rating to Ba2 from Ba3, probability of default rating to Ba2-PD from Ba3-PD and senior unsecured notes to B1 from B2.

The speculative grade liquidity rating was lowered to SGL-2 from SGL-1.

The outlook is stable.

"Energen's ratings upgrade reflects our expectation that the company will continue to execute its three-year growth plan to substantially increase its production and reserves, while maintaining strong credit metrics and good liquidity,” Sreedhar Kona, Moody's senior analyst, said in a news release.

“The company also benefits somewhat from its contracted takeaway capacity and Midland-Cushing price differential risk through basis hedges.

“The company's projected growth in scale, while reducing its cash flow outspend contributes to the stable outlook."

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