High Yield Energy: Energy Weekly

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High Yield Energy: Energy Weekly

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High Yield Energy

Energy Weekly

Rating Change - Credit

Earnings recap 19 May 2026

We provide earnings summaries for companies that have reported over the past two High Yield Credit

weeks ASCRES, CLMT, CRK, GLP, RIG, SM, SUN and VENLNG as well as key takeaways. United States

Energy

RD margins and cracks have strong momentum- +CLMT

We upgrade our credit recommendation on CLMT to OW (from MW). The company is set Table of Contents

up to benefit from structurally stronger crack spreads due to the war in Iran and

improved Renewable Diesel margin outlook due to the recent EPA RVO mandate. We Sector Performance 2

expect significant debt paydown to materialize this year. The 9.75% ’28 trading at Commodity Prices 3

attractive yield to call 6.0% YTW, while the 9 ¾ ’31 trade at 8.0% YTW, relative to Relative Value & Comparable Company Information 4

refining comps that trade at 6.9-7.1% YTW and Single B High Yield at 7.3% YTW. We see Company News 9

another 50bps of tightening and limited downside Midstream Overview 21

E&P Hedging Overview 22

Offshore outlook improving due to Energy security Earnings Calendar 23

As part of its earnings call, RIG management remains constructive on further backlog

additions, citing robust tendering and award momentum as energy security concerns

continue to intensify across the globe. Governments and International Oil Companies Gregg Brody

Research Analyst

(IOCs) are increasingly prioritizing long-cycle, secure offshore supply over short cycle BofAS

alternatives. RIG expects deepwater utilization to approach 100% by the end of 2027 as +1 646 855 6410 gregg.brody@bofa.com

offshore capex rises from ~13% of total E&P spend to nearly 30% by 2028. Noted that

Alexander Williams