March 22, 2016 - 1:57 PM EDT
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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.

Fitch Ratings
Mark Sadeghian, CFA
Senior Director
+1-312-368-2090
Fitch Ratings, Inc.
70 West Madison St.
Chicago, IL 60602
or
Media Relations
Alyssa Castelli, New York, +1-212-908-0540
[email protected]


Source: Business Wire (March 22, 2016 - 1:57 PM EDT)

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