S&P takes actions on oil, gas companies

S&P said it downgraded the ratings on six oil and gas exploration and production companies, revised the outlook on two and affirmed the ratings on another. The outlook for the six companies S&P downgraded is negative.

“For many of the issuers, the rating actions reflect our concerns about their liquidity, revolving credit facility borrowing-base redeterminations, refinancing risk and capital market access or our expectation for weaker credit measures due to lower prices. We are particularly concerned about some of the issuers’ ability to access the capital markets given investor aversion to the space and their current bond trading yields,” the agency said in a press release.

S&P downgraded Antero Resources Corp. to B+ From BB and lowered the senior unsecured issue-level rating lowered to BB- from BB and revised the recovery rating to 2 from 3. S&P cited upcoming debt maturities.

The agency lowered Ascent Resources Utica Holdings LLC to B from B+ and cut the senior unsecured issue-level rating to B+ from BB- and affirmed recovery rating at 2. The agency attributed the downgrade to upcoming debt maturities and large borrowings on its lending facility.

CNX Resources Corp.’s issuer credit rating was lowered to B+ from BB- and affirmed the BB- senior unsecured issue-level rating but revised the recovery rating to 2 from 3. S&P cited upcoming debt maturities.

S&P cut EQT Corp.’s issuer credit rating to BB+ from BBB-, trimmed the senior unsecured issue-level rating to BB+ from BBB- and 3 recovery rating assigned. The downgrade reflects weaker estimated credit measures for the company as its hedges roll off, S&P said.

Gulfport Energy Corp.’s issuer credit rating was lowered to B from B+ and senior unsecured issue-level rating to B from BB- and recovery rating revised to 3 from 2. The agency said it expects weaker financial measures from lower natural gas prices.

S&P cut Range Resources Corp.’s issuer credit rating to BB- from BB and lowered the senior unsecured issue-level rating to BB- from BB and affirmed the recovery rating at 3. S&P also cited its expectation of weaker credit measures due to weak natural gas prices.

The agency changed the outlooks to negative from stable for Comstock Resources Inc. and Southwestern Energy Co. For Comstock, the revision reflects the company’s narrow liquidity position and increased borrowing base redetermination risk during the upcoming redetermination cycles. S&P cited lower natural gas prices leading to Southwestern’s credit measures being at the lower end of its forecasted range for the company’s current rating for the outlook revision.

S&P affirmed its ratings and stable outlook for Montage Resources Corp.

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