Fitch gives Rockcliff Energy B+

Fitch Ratings said it assigned a first-time long-term issuer default rating of B+ to Rockcliff Energy II LLC. Fitch also gave BB+/RR1 ratings to Rockcliff's senior secured reserve-based lending facility and BB-/RR3 ratings to its planned senior unsecured notes.

“Rockcliff's ratings reflect the company's sizeable production of approximately 1 BCFe/d and 4.5 TCFe of proved reserves in the East Texas portion of the Haynesville basin. The ratings also reflect the company's peer-leading Fitch-estimated full-cycle cost of $1.55 per mcfe, $150 million-$200 million of mid-cycle forecasted positive pre-dividend free cash flow, over 15 years of economic drilling inventory at Fitch's mid-cycle price, and projected sub-1x debt/EBITDA profile.

“Offsetting factors include a limited track record, a smaller developed producing reserves (PDP) wedge at 35% of 1P reserves, continued need to further de-risk its East Texas acreage and uncertainty surrounding the longer-term capital allocation strategy,” Fitch said in a press release.

The outlook is stable.

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