Moody's rates PetroQuest notes Caa1

Moody's Investors Service said it assigned first-time ratings to PetroQuest Energy with a stable outlook, including a Caa1 rating to the company's proposed $150 million senior unsecured notes. Moody's also assigned a Caa1 senior implied rating and a SGL- 3 speculative grade liquidity rating.

Moody's said the Caa1 ratings reflect the company's very high pro forma debt on the smallest proved developed reserves (13.2 mmboe) among the exploration and production companies currently rated by Moody's; the short proven developed reserve life of 4.8 years; very high full cycle costs of about $30.00/boe; and the need to establish a record of consistent reserve and production growth.

The ratings are supported, the agency said, by the currently favorable commodity price outlook. The ratings also consider the gradual, though still incomplete, progress in moving away from the shorter lived oil and gas basin both onshore Gulf Coast and offshore Gulf of Mexico; and good balance sheet liquidity pro forma for the notes offering.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.