Fitch revises Magnolia view to stable

Fitch Ratings said it revised the outlook for Magnolia Oil & Gas Corp. and Magnolia Oil & Gas Operating LLC to stable from positive.

The revision reflects pressure on the company’s production profile created by the recent collapse in global oil prices. “As a result of weaker oil prices, lack of hedges, and a commitment to keep capex within 60% of EBITDAX, we expect MGY won’t achieve our upgrade sensitivity of production exceeding 70,000 (barrels of oil equivalent per day) boepd on a sustained basis in the near term,” said Fitch in a press release.

Fitch also affirmed its ratings on the company, its secured revolver and senior unsecured notes.

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