Moody’s might up Eclipse Resources

Moody's Investors Service said it placed the ratings of Eclipse Resources Corp. (B3) under review for upgrade following the announcement of a definitive agreement to merge with Blue Ridge Mountain Resources, Inc.

Eclipse is merging with Blue Ridge in an all-stock transaction valued at about $1.4 billion.

“This is a positive transaction for Eclipse that will create a larger pro-forma combined Appalachian basin focused E&P company while maintaining good growth,” the agency said in a news release.

“The combined entity will have a bigger production and cash flow base without an increase in debt, potentially better netbacks, a deeper drilling inventory that will extend portfolio durability, and greater opportunity to reduce costs, enhance capital efficiency and boost operational flexibility.”

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