S&P: Devon view now negative

Standard & Poor’s said it revised its outlook on Devon Energy Corp. to negative from stable and affirmed all of its ratings on the company, including the BBB+ corporate credit rating.

The outlook revision reflects expected deterioration in Devon Energy’s credit-protection measures in 2016 due to low oil and gas prices, rolling off of the company’s hedges, and use of debt and hybrid securities to fund a portion of the $3.45 billion acquisitions.

Devon Energy announced plans to acquire privately held Felix, which holds oil-rich properties in the STACK play in Oklahoma, for $1.9 billion, and in a separate transaction, to buy oil and gas properties in the Powder River Basin for $600 million.

Devon Energy's master limited partnership subsidiary EnLink also announced plans to buy Felix’s midstream operations for $1.55 billion.

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