Government & Regulatory

Fitch Completes E&P Rating; Nobody Cares

Share Print Bookmark    |    Tuesday,March 22,2016

On Feb. 24, Fitch revised its base case oil and gas price assumptions lower to reflect bearish trends in inventory builds and production that are expected to result in further delays in price recoveries for both commodities.

To demonstrate how slow or rather incompetent the company is at forecasting/guessing oil prices, its new base case price for oil (WTI and Brent) was lowered to $35/bbl in 2016, $45/bbl in 2017, and $55/bbl in 2018, while the long-term price was left unchanged at $65/bbl.

Henry Hub natural gas base case prices were lowered to $2.25/mcf in 2016, $2.50/mcf in 2017, and $2.75/mcf in 2018, while the long-term natural gas price was left unchanged at $3.25/mcf.

Anadarko Petroleum Corporation: IDR affirmed at 'BBB' and Outlook revised to Negative from Stable; Short-term rating downgraded to 'F3' from 'F2'

Apache Corporation: IDR downgraded to 'BBB' from 'BBB+'; Outlook Stable

Chesapeake Energy: IDR downgraded to 'B-' from 'B'; Outlook remains Negative

ConocoPhillips: Issuer Default Rating (IDR) downgraded to 'A-' from 'A'; Outlook remains Negative

Devon Energy Corporation: IDR affirmed at 'BBB+' and Outlook revised to Negative from Stable

Southwestern Energy Company: IDR downgraded to 'B+' from 'BBB-'; Outlook remains Negative

Unit Corporation: IDR downgraded to 'B+' from 'BB'; Outlook revised to Negative from Stable

Listed below are current Issuer Default Ratings (IDRs) and Outlooks for publicly rated North American energy companies:

Exploration & Production:

Occidental Petroleum Corp: IDR 'A'/Stable Outlook

ConocoPhillips: IDR 'A-'/Negative Outlook

Apache Corporation: IDR 'BBB'/Stable Outlook

Devon Energy Corporation: IDR 'BBB+'/Negative Outlook

Marathon Oil Corporation: IDR 'BBB'/Negative Outlook

Anadarko Petroleum Corporation: IDR 'BBB'/Negative Outlook

Hess Corporation: IDR 'BBB'/Negative Outlook

EnCana Corporation: IDR 'BBB-'/Negative Outlook

EQT Corporation: IDR 'BBB-'/Stable Outlook

Pioneer Natural Resources Company: IDR 'BBB-'/Stable Outlook

Murphy Oil Corporation: IDR 'BB+'/Stable Outlook

Newfield Exploration Company: IDR 'BB+'/Stable Outlook

Southwestern Energy Company: IDR 'B+'/Negative Outlook

Unit Corporation: IDR 'B+'/Negative Outlook

Jones Energy Holdings, LLC: IDR 'B'/Stable Outlook

Chesapeake Energy Corporation: IDR 'B-'/Stable Negative

Energy XXI Gulf Coast, Inc.: IDR 'C'

Drilling & Services:

Halliburton Company: IDR 'A-'/Stable Outlook

Nabors Industries, Inc.: IDR 'BBB-'/Negative Outlook

Weatherford International: IDR 'BB'/Negative Outlook

Transocean, Inc.: IDR 'BB'/Negative Outlook