S&P elevates WPX Energy

S&P said it raised the issue-level rating on WPX Energy Inc.'s senior unsecured notes to B+ from B and revised the recovery rating to 4 from 5. The recovery rating indicates an expectation of average (30%-50%; rounded estimate: 40%) recovery in the event of a payment default.

The possibility remains that the borrowing base on reserve-based lending credit facility could increase due to the significant increase in the company's reserve valuation. However, S&P said it does not anticipate an impact to the recovery prospects on the company's senior unsecured debt as a result of a modest increase in the RBL's borrowing base.

The upgrade on the company's senior unsecured debt follows a significant increase in its reserve valuation, primarily driven by an increase in activity in the Permian Basin, S&P said in a news release.

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