Noreco reported Q4 production in line with guidance, though the adj. EBITDA disappointed due to higher than expected opex. The production guarantee and oil price hedge create high visibility on 2020 revenues, and provide downside protection against the recent drop in Brent price. Should the fall in Brent be sustained, Noreco will be impacted, though in the short term we believe this to be an E&P credit that will be more resilient than peers.
