I like the Finch comment on red2000 post The Positive Watch reflects the acquisition by higher-rated Baytex Energy Corp., which will result in a pro forma company with increased production size and scale. Fitch expects to resolve the Rating Watch upon completion of the transaction, which will likely result in a ratings upgrade.
Ranger's standalone rating reflects the company's liquids-weighted assets in the Eagle Ford, which support margins; advantaged Gulf Coast market access, which leads to generally higher unhedged realized prices versus peers; strong hedge book and liquidity profile; expectations for mostly positive FCF and forecast sub-1.0x leverage metrics.