S&P: WPX Energy, notes BB+

Standard & Poor's said it assigned a BB+ corporate credit rating to WPX Energy Inc., along with a BB+ rating and a 3 recovery rating on WPX's planned $1.5 billion senior unsecured note offering.

The 3 recovery rating indicates 50% to 70% expected recovery in a default.

The company will retain $500 million of the net proceeds of the offering for general corporate purposes and the remainder will be paid to its parent company, Williams Cos. Inc.

The outlook is stable.

The ratings reflect the company's mid-size asset base and production levels, exposure to currently weak natural gas prices and significant capital spending, which will likely lead to cash flow deficits over the intermediate term, S&P said.

The ratings also consider the company's modest leverage, sizable resource play acreage positions from which to grow future production and strong liquidity, the agency said.

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