Anadarko's Rating Outlook is Positive.
KEY RATING DRIVERS
The current ratings reflect Anadarko's large size, high-quality asset position worldwide, modestly levered capital structure and strong liquidity position. The company had nearly 2.8 billion barrels of proved reserves at the end of 2013 making it one of the world's largest independent exploration and production companies. At year-end 2013, more than 70% of the proved reserves were developed and production is currently expected to be over 800,000 barrels of oil equivalent per day for 2014 which would mark six straight years of production increases. As of
The Positive Outlook reflects Anadarko's strong operational performance over the last several years as well as the anticipated satisfactory resolution of the Tronox Proceedings. Operationally, the company's production levels have grown over a third since the end of 2009 with essentially the same balance sheet debt levels. Other operational metrics are very strong as well with three year average reserve replacement well in excess of 100% at competitive finding, development and acquisition costs of approximately
Liquidity is primarily provided by existing cash balances of nearly
Positive: Future developments that may, individually or collectively, lead to positive rating action include:
--Completion of necessary final and non-appealable recommendations, approvals and injunctions related to the Tronox Adversary Proceeding settlement process.
--Strong operating results combined with continued conservative financial management of the balance sheet.
Negative: Future developments that may, individually or collectively, lead to negative rating action include:
--Large debt-financed acquisitions or share repurchases;
--A significant and sustained deterioration in credit metrics.
Fitch rates Anadarko and its affiliate
Anadarko Petroleum Corp.
--LT IDR 'BBB-';
--Sr. Notes & Debentures 'BBB-';
--Secured Credit Facility 'BBB'.
--LT IDR 'BBB-';
--Sr. Unsecured 'BBB-'.
The Rating Outlook is Positive.
Additional information is available at 'www.fitchratings.com'.
--'Corporate Rating Methodology' (
--'Cash Flow Trends in the U.S. Energy Sector-Shareholder Activism Having an Impact' (
--'Scenario Analysis: Lifting the U.S. Crude Export Ban' (
--'2014 Outlook: North American Oil & Gas' (
Corporate Rating Methodology - Including Short-Term Ratings and Parent and Subsidiary Linkage
Cash Flow Trends in the U.S. Energy Sector (Shareholder Activism Having an Impact)
Scenario Analysis: Lifting the Crude Export Ban (
2014 Outlook: North American Oil & Gas (Strong Oil Prices Continue to
Source: Fitch Ratings
Most Popular Stories
- Doctor Who Christmas Episode Begins Production
- HCL America Adding 1,200 IT Jobs
- Medical Mfg. Jobs Coming to Dayton
- Longtime Unemployed to Get Help in Las Vegas
- Michael Jackson, Freddie Mercury on Previously Unreleased Queen Cut
- SpaceX Aims for Predawn Launch on Saturday
- Women Key to Democratic Party: Clinton
- U.S. Chamber Caught Up in Tax Inversion Question
- Feds Won't Say How Many Border Crossers Jailed
- Christie Didn't Order Bridge Shut Down, Feds Say