S&P rates Oasis Petroleum notes B-

Standard & Poor's said it assigned a B corporate credit rating to Oasis Petroleum Inc. and a B- rating to Oasis's planned $300 million senior note offering due 2019. The 5 recovery rating indicates expectations of 10% to 30% recovery prospects.

The outlook is stable.

Proceeds will be used to fund future capital spending requirements.

"The ratings on Oasis reflect the company's relatively small asset base and production levels, geographic concentration, aggressive growth strategy, limited operating track record, previously weak accounting control processes and negative cash flow generation," S&P analyst Lawrence Wilkinson said in a statement.

Ratings also reflect the company's significant exposure to robust crude oil prices, a favorable cost structure and sizable resource play acreage position, the agency said.

© 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.