S&P boosts Hilcorp Energy I

S&P said it boosted Hilcorp Energy I LP and its senior unsecured notes to BB from BB-. The 3 recovery rating is unchanged.

“We recently raised our price assumptions for WTI oil to $70 per barrel (bbl) for the remainder of 2021 and $60/bbl in 2022 while raising Henry Hub natural gas to $4.50 per million Btu (mmBtu) for the remainder of 2021, $3.50/mmBtu in 2022, and $3.00/mmBtu in 2023. With oil accounting for over 58% of Hilcorp's expected production, we expect the company's cash flows to improve materially over the next 12-24 months, the majority which we anticipate will be used towards debt paydown,” S&P said in a press release.

The outlook is stable.

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