Wall Street Journal report casts doubt on Hilcorp's $5.6 billion deal with BP Alaska
The Wall Street Journal reported Thursday that major banks have balked at financing Hilcorp Energy’s purchase of BP Alaska’s oilfield assets, casting new uncertainty on the major deal the companies had hoped to finalize by June.
The report comes the same week that a major credit rating agency downgraded Hilcorp Energy’s rating. The Regulatory Commission of Alaska is seeking details by May 4 about Hilcorp’s ability to raise capital during the recent market turmoil.
Fueling the concerns is the collapse in oil prices, sparked by historically low demand during the coronavirus crisis and a price war between Russia and Saudi Arabia. The price of Alaska North Slope crude has fallen by about 60% this year.
A group of banks led by JPMorgan Chase and Wells Fargo have hesitated to finance the $5.6 billion sale, the Wall Street Journal reported, citing unnamed sources familiar with the transaction.
Read more: https://www.adn.com/business-economy/energy/2020/04/10/wall-street-journal-report-casts-doubt-on-hilcorps-56-billion-deal-with-bp-alaska/