S&P revises Woodford view to positive

S&P said it revised Woodford Express LLC’s outlook to positive from negative and affirmed the CCC+ ratings on the company and its senior unsecured notes. The 3 recovery rating on its senior secured notes is unchanged, indicating an expectation for meaningful (50%-70%; rounded estimate: 65%) recovery in default.

The revision mirrors the position that Gulfport Energy Corp. will retain Woodford as a key partner in the South Central Oklahoma Oil Province acreage, S&P said.

“The positive outlook on Woodford reflects our expectation that the company will increase volume throughput on its system and continue to pay down debt. However, we still believe that the company is dependent upon favorable business, financial, and economic conditions to meet its financial commitments,” S&P said in a press release.

Gulfport filed for Chapter 11 in November and is currently going through approval of its reorganization plan with the bankruptcy court in Houston.

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