Printer Friendly

DUFF & PHELPS ADDS WESTERN GAS RESOURCES, INC. TO RATING WATCH

 CHICAGO, July 23 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has placed the securities of Western Gas Resources, Inc. on Rating Watch -- Unfavorable. The company's publicly traded cumulative preferred stock, approximately $35 million of which is outstanding, is rated `BBB-' (Triple-B-Minus).
 Western Gas Resources recently signed a definitive agreement to acquire NERCO Inc.'s Black Lake field and the stock of Black Lake Pipeline for approximately $156 million. It is not yet certain how Western Gas Resources will finance the transaction. The company's pending acquisition of the outstanding stock of Mountain Gas Resources for $130 million and the assumption of its existing debt is expected to close shortly. This acquisition is expected to be initially funded from the company's credit facilities.
 Duff & Phelps' review will focus on the impact of these acquisitions on Western Gas Resources' capital structure. Management's willingness to sell equity to maintain a balanced capital structure has been an important factor in the rating assignment. Sales of preferred stock and common equity in 1991-92 have helped to reduce relatively high balance sheet leverage.
 Western Gas Resources has identified a niche in the natural gas industry as a gatherer, processor, and marketer of natural gas and natural gas liquids. Acquisitions and internal growth have been important elements of the company's strategy.
 -0- 7/23/93
 /CONTACT: James J. Stork, CFA of Duff & Phelps Credit Rating Co., 312-368-3125/
 (WGR)


CO: Western Gas Resources, Inc. ST: IN: OIL SU: RTG

WB -- NY084 -- 5307 07/23/93 16:42 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 23, 1993
Words:248
Previous Article:READING & BATES CORPORATION MAKES ANNOUNCEMENT
Next Article:CONTINENTAL'S RESPONSE TO ULTRAIR'S STATEMENT
Topics:


Related Articles
DUFF & PHELPS LOWERS RATINGS OF ARKLA DEBT AND PREFERRED STOCK
DUFF & PHELPS ADDS SOUTHERN UNION COMPANY TO RATING WATCH
DUFF & PHELPS ADDS ONEOK TO RATING WATCH
DUFF & PHELPS REMOVES ONEOK FROM RATING WATCH
THE WILLIAMS COMPANIES, INC. ADDED TO RATING WATCH -- UP BY DUFF & PHELPS CREDIT RATING CO.
DUFF & PHELPS DOWNGRADES WESTERN GAS RESOURCES RATING
DUFF & PHELPS CREDIT RATING CO. ANNOUNCES RATING DOWNGRADE OF THE WILLIAMS COMPANIES, INC., UPGRADE OF TRANSCO ENERGY COMPANY AND SUBSIDIARIES
DCR Assigns Expected Post-Merger Ratings and Revises Rating Watch Status of Houston Industries Inc. and NorAm Energy Corp.
DCR Places Consolidated Natural Gas Company on Rating Watch--Uncertain; Formerly on Rating Watch -- Down.
DCR Assigns Initial Rating to Western Gas Resources' Proposed Subordinated Debt Offering.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters