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Bulletin: Whiting Petroleum Corp. Ratings Unaffected By Moving Some Reserves To Trust Unit Nov 07
Standard & Poors, Nov 2007
Abstract
NEW YORK (Standard & Poor's) Nov. 21, 2007--Standard & Poor's Ratings Services said today that the decision by Whiting Petroleum Corp. (BB-/Stable/--) to move 3.5% of its total proved reserves (8.1 million barrels of oil equivalent {boe}) into the Whiting USA Trust I (unrated) does not affect its ratings or outlook on the company. Although Standard & Poor's will treat the expected proceeds of $195 million as debt-like, we view the structure as being similar to a volumetric production payment (VPP); the transaction is credit neutral because the proceeds will be used to reduce outstanding debt under Whiting Petroleum's revolving credit facility. We expect the company to use the additional borrowing capacity under its revolver to fund some of its...
Companies mentioned in this report are: Whiting Petroleum Corp.
Action: Bulletin
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
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