Moody’s rates Chaparral Energy, notes

Moody's Investors Service said it assigned Chaparral Energy, Inc. a B3 corporate family rating, a B3-PD probability of default rating and a Caa1 rating on its proposed $300 million senior unsecured notes due 2023.

The outlook is stable.

Note proceeds will be largely used to fully repay borrowings drawn under the company's secured bowing base revolving credit facility.

"Since its emergence from Chapter 11 bankruptcy in March 2017 with a balance sheet unburdened by debt levels that had become unsustainable, Chaparral has transitioned into an operator whose sole development focus is centered on Oklahoma's STACK oil and gas play," Moody's vice president Andrew Brooks said in a news release.

"Emphasizing growth across its 119,000 net STACK acreage, Chaparral will likely outspend cash flow, although it has good liquidity to cushion the outspend and is unlikely to over-leverage its balance sheet."

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