(Editor's Note: This article was originally published on June 25, 1998. It is being republished now for RatingsDirect.) The rating of the $80 million of unsecured debt issued by NOARK Pipeline Finance LLC is based on the unconditional guarantee of Southwestern Energy Co. (BBB+/Stable/) for 60% of the outstanding debt and of Enogex Inc. (A-/Stable/) for 40%. Enogex is a subsidiary of OGE Energy Corp. (AA-/Stable/A-1), parent company of Oklahoma Gas & Electric Co.(AA/Stable/), which accounts for most of OGE Energy's consolidated earnings. Southwestern owns two gas distribution systems in Arkansas, but most of the company's capital is invested in oil and gas production in Arkansas, Louisiana, and New Mexico. Southwestern and Enogex own, via subsidiaries, the NOARK Pipeline System...
Companies mentioned in this report are:
- Noark Pipeline Finance, L.L.C.
- Southwestern Energy Co.
Action: New Rating
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