Fitch Assigns EnVen Energy B-

Fitch Ratings said it assigned a B- long-term issuer default rating to EnVen Energy Corp., EnVen Finance Corp. and Energy Ventures GoM LLC. The agency also gave a BB-/RR1 rating to EnVen's first-lien reserve-based lending credit facility and a B-/RR4 rating to the planned senior secured second-lien notes.

“EnVen's ratings reflect the company's low-decline, oil-weighted assets in the Gulf of Mexico (GoM), advantaged offshore pricing which supports unhedged realized prices, credit-conscious financial policy resulting in sub-1.5x leverage metrics, disciplined rolling hedge strategy that protects and funds the development program, adequate liquidity and Fitch forecasted positive annual mid-cycle FCF,” Fitch said in a press release.

The positives are offset by the lack of diversification and small operational scale, a relatively short proved reserve life and just over five years on a strip reserves basis, limited subsea tieback track record, offshore environmental remediation obligations and heightened offshore regulatory risks, the agency said.

The outlook is stable.

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