S&P: Pogo Producing remains on watch

Standard & Poor's said its BB corporate credit rating on Pogo Producing Co. remains on CreditWatch with negative implications following the company's announcement that it has entered into a definitive agreement to sell 50% of its Gulf of Mexico properties to Mitsui & Co. Ltd. (A/stable/A-1) for $500 million in cash.

The agency noted that the rating on Pogo was placed on CreditWatch with negative implications on April 17, following the company's announcement that it had agreed to acquire privately held Latigo Petroleum Inc. for about $750 million.

The CreditWatch update incorporates Pogo's intentions to use the $500 million cash proceeds from the sale of its more risky Gulf of Mexico operations toward the financing its $750 million acquisition of less risky onshore properties of Latigo, which is viewed as favorable to credit quality, S&P said.

© 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.