High Yield Energy: Energy Weekly

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High Yield Energy: Energy Weekly

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High Yield Energy

Energy Weekly

Earnings Review

BORRNO results weak, outlook remains strong 25 May 2026

BORR reported disappointing results due to a contract delay start-up and a one-time High Yield Credit

credit loss provision. 2Q26 results will also be impacted by the contract delay, but United States

BORRNO continues to see recent events in the Middle East strengthening the long term Energy

outlook for the sector. Expect improved activity and day rates will lag the oil price

development by 6-12 months but are increasingly confident in 2027 and 2028 Table of Contents

prospects. Remain OW. With bonds trading in the 8.0-9.0% YTW range, we believe

relative value is compelling when compared to Single B risk at 7.4% YTW and Higher Sector Performance 2

Beta Energy comps trading between 6.9-8.4% YTW. Commodity Prices 2

Relative Value & Comparable Company Information 2

MSSCRK results ahead of expectations Company News 2

Affirmed 2026 guidance given just 1 month ago despite exceeding expectations. Midstream Overview 2

Management described the guidance range as conservative and expressed confidence in E&P Hedging Overview 2

hitting their targets. No incremental updates to SB-17, which impacts the company’s Earnings Calendar 2

ability to complete M&A transactions and leases greater than 1 year in Texas. We

reiterate our OW credit recommendation. At 7.8% YTW, MSSCRK trades cheap to Single

B High Yield index which trades at 7.4% YTW. Gregg Brody

Research Analyst

WTI and TTF declines on Hormuz opening progress BofAS+1 646 855 6410

Last week front month WTI decreased by 8.4% to $96.60/bbl and front-month TTF gregg.brody@bofa.com

decreased by 3.2% to $16.57/MMBtu as progress on a deal with Iran to reopen the Alexander Williams