S&P eyes Centennial, Colgate positively

S&P said it placed all its ratings for Centennial Resource Development Inc. and Colgate Energy Partners LLC on CreditWatch with positive implications.

The positive watch on both companies reflects the likelihood of a one notch upgrade on the issuers’ ratings after their planned merger closes. “Although the combined entity will be a public company, we expect it to be significantly owned by financial sponsors Pearl Energy Investments, NGP and Riverstone Holdings,” S&P said in a press release.

The combined company will be about twice the size of Colgate based on proved reserves and production, and will remain solely focused in the Delaware Basin in Texas and New Mexico.

S&P said it aims to resolve the placements after the deal closes, expected in the second half of 2022.

© 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.