Moody's rates Oasis notes B3

Moody's Investors Service said it assigned a B3 (LGD5, 73%) rating to Oasis Petroleum Inc.'s proposed $600 million of senior notes due 2022. The outlook is stable.

The note proceeds, revolver borrowings and cash on the balance sheet will be used to fund acquisitions of assets in the Williston Basin in North Dakota.

The agency said the company's B2 corporate family rating reflects its growing scale, single basin concentration and its successful execution and track record of growing its production and reserves.

With the recent asset acquisitions, Oasis' pro forma debt on production will increase to more than $60,000 (including Moody's standard adjustments), but Moody's expects leverage to trend down in 2014 once Oasis realizes the incremental production.

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