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saf delivers more
agentm,
Also a more comprehensive note from Mooodys which confirms the very solid naure of Hilcorp ´s debt. Seems to be a very well run company with a Houston billionaire at the helm.
http://www.bondweb.co.kr/menu01/sub...Direction=&gubun1=0&gubun2=Dow Jones&keyword=
The following is a press release from Moody＇s Investors Service:
Approximately $992 million of Rated Debt Affected
New York, February 03, 2010 -- Moody＇s Investors Service assigned a B2
rating to Hilcorp Energy I, L.P.＇s (Hilcorp) proposed $300 million senior
unsecured notes due 2020. Moody＇s also affirmed Hilcorp＇s B1 Corporate
Family Rating (CFR) and the B2 rating on the company＇s existing senior
unsecured notes. The outlook is stable.
"This bond offering refinances outstanding revolver borrowings and
provides additional cash to fund planned acquisitions and development,"
commented Francis Messina, Moody＇s Vice President. "While this will
increase Hilcorp＇s debt level, Hilcorp entered 2010 with low leverage
metrics relative to similarly rated peers."
Pro forma for the notes offering, Moody＇s estimates Hilcorp＇s adjusted
Debt/PD at approximately $10/Boe and debt plus future FAS 69 proven
reserve development capex on total proven reserves at approximately
$13.50/Boe. However, in terms of debt to average daily production
Hilcorp carries less leverage compared to its peers estimated less than
$22,000/Boe. Moody＇s estimates that Hilcorp will reduce further its
adjusted debt/PD level below $10/boe as the company rationalizes its
reserve portfolio.
Hilcorp＇s B1 CFR reflects strong production growth trends from
investments, comparatively stable production and a long generally
productive history in most of its focus regions, and an expected
reduction in financial leverage as earnings continue to grow. Though
Hilcorp has an aggressive acquisition strategy the company has indicated
it will appropriately contain leverage.
Hilcorp has had a successful track record for replacing production through
its acquire and exploit strategy of purchasing mature properties from
the majors then adding reserves through the drillbit, with an estimated
14% compounded annual growth rate from year-end 2002 projected into
2010. The relatively low three-year drillbit costs of estimated at
approximately $15.73/boe underlines Hilcorp＇s solid exploitation reserve
replacement trend and also reflects management＇s strong operational
expertise. Hilcorp operates 93% of its net production.
The stable outlook is based on an expectation that Hilcorp funds its
capital expenditures at levels largely in line with its operating cash
flows while achieving its production growth targets. The outlook could be
changed to negative if spending were to materially exceed operating cash
flow. The outlook could also be pressured or the ratings downgraded if
the company were to significantly increase debt through further property
acquisitions, dividends, and/or outspend its operating cash flows.
Dividends for year-end 2008 were approximately $100 million, with an
estimated dividend of $75 million for 2009.
The ratings for the senior unsecured notes reflect both the overall
probability of default of the company, to which Moody＇s assigns a PDR of
B1, and a loss given default of LGD 4, 62%, previously LGD 4, 66%. The
B2 rating of the senior unsecured notes reflects their position in
Hilcorp＇s capital structure, including the subordination to all first
lien senior secured creditors and full guarantees of existing and future
subsidiaries.
The last rating action was on November 13, 2009 when Moody＇s upgraded
Hilcorp＇s CFR to B1 from B2, and upgrade its senior unsecured notes to
B2 from B3.
The principal methodology used in rating Hilcorp was Moody＇s Global
Independent Exploration and Production Industry rating methodology
published in December 2008. The methodology is available on
www.moodys.com in the Rating Methodologies sub-directory under the
Research & Ratings tab. Other methodologies and factors that may have
been considered in the process of rating this issuer can also be found in
the Rating Methodologies sub-directory on Moody＇s website.
Hilcorp is a private limited partnership engaged in onshore and coastal
oil and gas production, acquisitions, exploitation, and divestitures.
Hilcorp acquires properties late in their productive lives with a goal of
boosting production through recompletions, workover and repair of
downhole hardware, restimulation of the wellbore/reservoir interface, and
refracturing of reservoir rock.
agentm,
Also a more comprehensive note from Mooodys which confirms the very solid naure of Hilcorp ´s debt. Seems to be a very well run company with a Houston billionaire at the helm.
http://www.bondweb.co.kr/menu01/sub...Direction=&gubun1=0&gubun2=Dow Jones&keyword=
The following is a press release from Moody＇s Investors Service:
Approximately $992 million of Rated Debt Affected
New York, February 03, 2010 -- Moody＇s Investors Service assigned a B2
rating to Hilcorp Energy I, L.P.＇s (Hilcorp) proposed $300 million senior
unsecured notes due 2020. Moody＇s also affirmed Hilcorp＇s B1 Corporate
Family Rating (CFR) and the B2 rating on the company＇s existing senior
unsecured notes. The outlook is stable.
"This bond offering refinances outstanding revolver borrowings and
provides additional cash to fund planned acquisitions and development,"
commented Francis Messina, Moody＇s Vice President. "While this will
increase Hilcorp＇s debt level, Hilcorp entered 2010 with low leverage
metrics relative to similarly rated peers."
Pro forma for the notes offering, Moody＇s estimates Hilcorp＇s adjusted
Debt/PD at approximately $10/Boe and debt plus future FAS 69 proven
reserve development capex on total proven reserves at approximately
$13.50/Boe. However, in terms of debt to average daily production
Hilcorp carries less leverage compared to its peers estimated less than
$22,000/Boe. Moody＇s estimates that Hilcorp will reduce further its
adjusted debt/PD level below $10/boe as the company rationalizes its
reserve portfolio.
Hilcorp＇s B1 CFR reflects strong production growth trends from
investments, comparatively stable production and a long generally
productive history in most of its focus regions, and an expected
reduction in financial leverage as earnings continue to grow. Though
Hilcorp has an aggressive acquisition strategy the company has indicated
it will appropriately contain leverage.
Hilcorp has had a successful track record for replacing production through
its acquire and exploit strategy of purchasing mature properties from
the majors then adding reserves through the drillbit, with an estimated
14% compounded annual growth rate from year-end 2002 projected into
2010. The relatively low three-year drillbit costs of estimated at
approximately $15.73/boe underlines Hilcorp＇s solid exploitation reserve
replacement trend and also reflects management＇s strong operational
expertise. Hilcorp operates 93% of its net production.
The stable outlook is based on an expectation that Hilcorp funds its
capital expenditures at levels largely in line with its operating cash
flows while achieving its production growth targets. The outlook could be
changed to negative if spending were to materially exceed operating cash
flow. The outlook could also be pressured or the ratings downgraded if
the company were to significantly increase debt through further property
acquisitions, dividends, and/or outspend its operating cash flows.
Dividends for year-end 2008 were approximately $100 million, with an
estimated dividend of $75 million for 2009.
The ratings for the senior unsecured notes reflect both the overall
probability of default of the company, to which Moody＇s assigns a PDR of
B1, and a loss given default of LGD 4, 62%, previously LGD 4, 66%. The
B2 rating of the senior unsecured notes reflects their position in
Hilcorp＇s capital structure, including the subordination to all first
lien senior secured creditors and full guarantees of existing and future
subsidiaries.
The last rating action was on November 13, 2009 when Moody＇s upgraded
Hilcorp＇s CFR to B1 from B2, and upgrade its senior unsecured notes to
B2 from B3.
The principal methodology used in rating Hilcorp was Moody＇s Global
Independent Exploration and Production Industry rating methodology
published in December 2008. The methodology is available on
www.moodys.com in the Rating Methodologies sub-directory under the
Research & Ratings tab. Other methodologies and factors that may have
been considered in the process of rating this issuer can also be found in
the Rating Methodologies sub-directory on Moody＇s website.
Hilcorp is a private limited partnership engaged in onshore and coastal
oil and gas production, acquisitions, exploitation, and divestitures.
Hilcorp acquires properties late in their productive lives with a goal of
boosting production through recompletions, workover and repair of
downhole hardware, restimulation of the wellbore/reservoir interface, and
refracturing of reservoir rock.
