Fitch Completes North American Rating Actions Associated with Lower Oil & Gas Assumptions
Fitch Ratings has concluded its review of North American energy credits
associated with its recently revised oil
and gas price deck.
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. The 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.
Fitch has taken the following rating actions on publicly rated entities
linked to the Feb. 24 price revision:
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
Seacor Holdings, Inc.: IDR 'B'/Stable Outlook
Refining/Downstream:
Marathon Petroleum Corporation: IDR 'BBB'/Stable Outlook
Valero Energy Corporation: IDR 'BBB'/Stable Outlook
CITGO Petroleum Corporation: IDR 'B'/Stable Outlook
CITGO Holding, Inc.: IDR 'B-'/Stable Outlook
Additional information is available at 'www.fitchratings.com'.
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND
DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING
THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS.
IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE
AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'.
PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS
SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS
OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES
AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF
THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE
RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR
RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY
CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH
WEBSITE.
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