S&P revises Chord outlook to positive

S&P said it revised its outlook for Chord Energy Corp. to positive from stable and affirmed all its ratings, including the BB- issuer rating.

The positive outlook reflects Chord’s deal to combine with unrated Enerplus Corp., S&P said.

“Chord's scale in the Williston basin will significantly improve following its merger with Enerplus and will be more in line with higher-rated peers. The merger with Enerplus will increase Chord's proved reserves by about 297 million barrels of oil equivalent (mmboe) to 933 mmboe and expand its production by approximately 100 thousand barrels of oil equivalent per day (mboe/d) to about 270 mboe/d. We expect the transaction will close midyear 2024, subject to customary closing conditions in the U.S. and Canada,” S&P said in a statement.

The revised outlook on reflects the view that the company will preserve its conservative financial policy and strong credit metrics, including average funds from operations to debt well above 100% and debt to EBITDA well below 1x over the next two years, the agency said.

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