Fitch rates Magnolia Oil, revolver, notes

Fitch Ratings said it assigned B long-term issuer default ratings to Magnolia Oil & Gas Corp. and Magnolia Oil & Gas Operating, LLC.

The agency also assigned a BB/RR1 rating to the company's first-lien senior secured revolver and a BB-/RR2 rating to its senior unsecured notes.

The outlook is stable.

Fitch said the ratings reflect Magnolia's strong asset base, anchored by its position in the core of the Eagle Ford liquids window in Karnes County; high exposure to liquids (78% of production); low break-evens ($28-$32/bbl); favorable pricing differentials (realized oil prices are close to LLS given the Eagle Ford's access to export markets on the Gulf coast); and conservative financial policy.

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