Several E&P analysts recently initiated favorable coverage of a new guy in town, Magnolia Oil and Gas Corp. (NYSE: MGY), the South Texas vehicle run by chairman, president and CEO Steve Chazen. The newly public company recently reported its first quarterly results after acquiring the South Texas assets of EnerVest Ltd.

Fitch Ratings assigned first-time long-term Issuer Default Ratings (IDRs) of 'B' to Magnolia, a 'BB'/'RR1' rating to the company's first-lien senior secured revolver, and a 'BB-'/'RR2' rating to its senior unsecured notes. The outlook is stable, Fitch said, citing the strong asset base and low breakeven price of $28-$32/bbl. It noted the company was unhedged.

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