Summary: Chaparral Energy Inc. Jun 10
- ID: 1804861
- June 2010
- Standard & Poors
The ratings on Chaparral Energy Inc. reflect its significant debt burden, elevated cost structure, and small reserve base. The ratings also incorporate Chaparral's mix of crude oil and natural gas reserves, solid reserve life, high operatorship of its properties, and extensive hedging program. Pro forma for CCMP Capital Investors II's $325 million investment in April, Chaparral's liquidity should be around $290 million. Standard & Poor's Ratings Services believes the company will maintain adequate liquidity, although we anticipate Chaparral will outspend operating cash flows. We also note that Chaparral's hedging program, which covers around 85% of current production, should provide a stable base of cash flow during a period of uncertain hydrocarbon pricing, particularly natural gas. Chaparral's financial risk profile is...
Companies mentioned in this report are:
- Chaparral Energy Inc.
- KCS Energy Inc.
- GE Capital Corp.
- EPL Oil & Gas Inc.
- Whiting Petroleum Corp.
- Delta Petroleum Corp. (Unsolicited Ratings)
- Clayton Williams Energy Inc.
- Petrohawk Energy Corp.
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