Fitch rates Murphy Oil notes BB+

Fitch Ratings said it assigned a BB+/RR4 rating to Murphy Oil Corp.’s seven-year senior unsecured notes.

The ratings reflect the extension of maturities to 2024, the expectation that free cash flow should be neutral at the current price deck and expected growth in Gulf of Mexico production in late 2022 following the completion of three offshore projects. This is offset by elevated credit metrics resulting from lower commodity prices in 2020 due to the pandemic, lower production expectations due to lower capital expenditures, and risk of potential changes in federal regulations from the Biden administration regarding offshore drilling, Fitch said.

Proceeds, along with cash on hand, are intended to fund the redemption of two series of 2022 senior unsecured notes.

The outlook is negative.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.