Fitch Ratings has removed Ranger Oil Corporation (Ranger) and Penn Virginia Holdings, LLC from Rating Watch Positive and upgraded the Long-Term Issuer Default Rating (IDR) to 'B+' from 'B-'.

Fitch also upgraded the issue-level ratings of Penn Virginia Holdings, LLC's reserve-based lending credit facility (RBL) to 'BB+'/'RR1' from 'BB-'/'RR1'. The Rating Outlook is Positive.

Fitch has also withdrawn the IDR and issue-level rating of Ranger and Penn Virginia Holdings, LLC. This follows the close of the acquisition between Baytex Energy Corporation (IDR: B+/Positive) and Ranger which occurred on June 20, 2023, with repayment of Ranger's debt upon closing. The rating is equalized under the PSL criteria given the stronger parent due to strong strategic and operational ties.

Fitch has withdrawn the IDR and issue-level rating for Ranger and Penn Virginia Holdings, LLC following the close of acquisition by Baytex and repayment of Ranger's debt upon closing.

Key Rating Drivers

N/A as of the withdrawing of Ranger's IDR and issue-level ratings following the completion of the acquisition by Baytex.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to positive rating action/upgrade:

N/A - ratings are being withdrawn.

Factors that could, individually or collectively, lead to negative rating action/downgrade:

---N/A - ratings are being withdrawn.

Best/Worst Case Rating Scenario

International scale credit ratings of Non-Financial Corporate issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit https://www.fitchratings.com/site/re/10111579.

Issuer Profile

Ranger Oil Corporation is an independent oil and gas company engaged in the exploration, development and production of oil, NGLs and natural gas in the Eagle Ford Shale in South Texas.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

ESG Considerations

Ranger Oil Corporation has an ESG Relevance Score of '4' for Energy Management that reflects the company's cost competitiveness and financial and operational flexibility due to scale, business mix and diversification. This factor has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors.

The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. For more information on Fitch's ESG Relevance Scores, visit https://www.fitchratings.com/topics/esg/products#esg-relevance-scores.

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