DBRS puts Tourmaline on positive review

DBRS said it placed Tourmaline Oil Corp.’s BBB issuer and senior unsecured notes ratings under review with positive implications following the company’s announcement it entered into an agreement to acquire Black Swan Energy Ltd. for about C$1.1 billion.

“The under review with positive implications status reflects the expected improvement in the company’s (1) business risk profile due to a meaningful increase in size primarily as the result of acquisitions announced and concluded since Q3 2020 and (2) financial risk profile as a result of deleveraging and stronger cash flow outlook with the recovery in crude oil and natural gas prices as well as increased volumes,” DBRS said in a press release.

The agency aims to resolve the under review with positive implications status at the acquisition’s close. If the deal closes as planned, Tourmaline’s ratings are likely to be a notch higher than the current ratings, DBRS said.

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