S&P views Oryx Midstream negatively

S&P said it changed its outlook for Oryx Midstream Services Permian Basin LLC to negative from stable and affirmed the BB- ratings on the company and its $1.84 billion term loan. The loan’s 3 recovery rating (50%-70%; rounded estimate: 50%) is unchanged

Oryx holds a 35% membership interest in Plains Oryx Permian Basin, a crude oil gathering company in the Permian Basin. The company lowered its expected distributions from Plains Oryx and it relies on those funds to service its loan.

“We now expect that Omspb's EBITDA interest coverage ratio will be below 3x in 2023 before increasing next year,” S&P said in a press release.

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