Andrew Stafford contributed to this article.
Key Takeaways
- The slump in oil and gas prices is different from the last downturn mostly because many borrowers can't rely on equity offerings and asset sales to preserve credit quality, and the ability to cut costs further is limited.
- There are eight companies on the cusp of falling into fallen angel category, which will hinge on the outcome of our price deck review in the third quarter.
- Speculative-grade issuers will continue to wrestle with refinancing risks amid a lack of market access. More distressed exchanges and bankruptcies are inevitable.
With the collapse of oil and gas prices, there has been a significant amount of upstream oil and gas rating activity by S&P Global Ratings, particularly in the U.S., and there's no light at the end of the tunnel yet (see chart 1).
Here, we summarize the rating actions (see table 2) we've taken on U.S. upstream companies and discuss the key findings driving these actions following the most recent revision of our hydrocarbon price assumptions on March 19 (see "S&P Global Ratings Cuts WTI And Brent Crude Oil Price Assumptions Amid Continued Near-Term Pressure"). Given the heavy preponderance of ratings on companies with negative outlooks, we also address some of the issues we will focus on that could trigger additional rating negative actions.
Chart 1
What's Different About This Downcycle?
Two notable differences stand out when we compare this downcycle with the 2015-2016 downturn. First, the ability to raise capital is limited relative to the last downturn during 2015-2016. In the past, the markets were more welcoming and willing to accept deals involving asset sales or the raising of equity by investment-grade issuers. If issuers were planning to sell assets in the current environment, we have been much more skeptical as to the ability and timing of any such asset sale that could preserve credit quality. Also, there has been a sea change in investor sentiment versus the last down cycle--stockholders now demand that producers focus on living within cash flows and require improvement in returns and profitability, so the likelihood of any investment-grade company issuing equity is remote.
For speculative-grade issuers, there is virtually no ability to issue unsecured debt or equity because of the limited investor appetite and given the yield on bonds.
Secondly, issuers during the last cycle were very successful in achieving significant efficiencies and garnering price concessions from oil field service (OFS) companies that reduced cost profiles, enabling them to better withstand lower prices. Producers today don't have quite the same ability to generate anywhere near the cost savings achieved last time around.
Investment-Grade Issuers Grapple With Lower Prices
We began our review with investment-grade issuers, given the keen investor focus. For the most part, we lowered investment-grade ratings because a company's leverage was either too high for the rating, it lacked hedges, or had weak credit metrics before the downturn began. In those instances where we affirmed issuer credit ratings and/or only revised outlooks, companies tended to have healthier balance sheets, lower-cost operations, or good hedge positions. For example, Hess Corp. (ratings affirmed, outlook revised to negative from stable), Concho Resources Inc. (ratings affirmed, outlook revised to stable from positive), and Diamondback Energy Inc. (ratings affirmed, outlook revised to negative from stable) had a hedge book that supported their credit quality and metrics.
Of the more noteworthy actions, four companies were downgraded to speculative grade: Occidental Petroleum Corp., Apache Corp., Patterson-UTI Energy Inc. (UTI-Patterson), and Continental Resources Inc. Moreover, we now have eight exploration and production (E&P) issuers that are on the cusp (BBB-/Negative/--) of slipping into fallen angel category (see table 1).
Table 1
U.S. Upstream Oil And Gas Issuers On The Fallen Angel Cusp | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Segment | Current Rating | Current outlook | Previous rating | Previous outlook | ||||||||
Marathon Oil Corp. |
E&P | BBB- | Negative | BBB | Stable | |||||||
National Fuel Gas Co. |
E&P | BBB- | Negative | BBB | Stable | |||||||
Noble Energy Inc. |
E&P | BBB- | Negative | BBB | Stable | |||||||
Ovintiv Inc. |
E&P | BBB- | Negative | BBB | Stable | |||||||
Cimarex Energy Co. |
E&P | BBB- | Negative | BBB- | Stable | |||||||
Devon Energy Corp. |
E&P | BBB- | Negative | BBB- | Stable | |||||||
Diamondback Energy Inc. |
E&P | BBB- | Negative | BBB- | Stable | |||||||
Hess Corp. |
E&P | BBB- | Negative | BBB- | Stable | |||||||
Note: Ratings are as of May 8, 2020. E&P--Exploration and production. Source: S&P Global Ratings. |
Inevitably, the question many investors will ask is: What will it take for those issuers to become fallen angels? The main driver will be our reassessment of our hydrocarbon price deck. While we typically review our assumptions once per quarter, we've been steadfast in not reacting to short-term volatility like that which we've recently seen. Any revision of our price decks, if it were to occur, would likely take place in the third quarter, allowing us time to assess supply and demand fundamentals, OPEC's and other producers' production cuts, and how prices and futures curves look for the next couple of years. If, at that time, we materially lower next year's and/or the following years' price assumptions, some or all of these issuers could fall from investment-grade status.
A few of the more notable downgrades in the OFS segment were Halliburton Co. (downgraded to 'BBB+') and Schlumberger Ltd. (downgraded to 'A'), with the notable fallen angel being UTI-Patterson (downgraded to 'BB+'). Going into this downturn, OFS issuers were already experiencing very difficult market conditions, and with North American E&P companies cutting capital spending budgets by an estimated 35% this year, the services segment has been decimated.
Speculative-Grade Issuers Struggle With Market Access
Most of our high yield, or speculative-grade, rating actions weren't related to high leverage or weak credit metrics but rather due to expected difficulties accessing the capital markets for maturing debt as well as a likely decline in revolving credit facility borrowing bases in the spring and upcoming fall redeterminations. Given what the yields are for many speculative-grade issuers, the likelihood and ability of many of them to access capital markets is minimal. We believe bank revolving credit facility borrowing bases will be down an average of 20%-25% during the spring redeterminations and that banks will be less willing and accommodating as they were during the last cycle, which will further limit liquidity and funding.
More Distressed Exchanges And Bankruptcies Are On The Way
Of note, is the high preponderance of issuers rated single 'B-' or below (see charts 1 and 2). There are 50 companies in this category, which represents 49% of the all rated oil and gas issuers. However, if you drill down deeper, we find that 37% of all oil and gas companies have ratings of 'CCC+' or below, which indicates a high degree of probable defaults and/or bankruptcies.
Chart 2
We expect the rate of distressed exchanges and bankruptcies to increase substantially over the next year. Since the beginning of 2015, there have been a total of 215 E&P companies and 196 OFS companies that have filed bankruptcy in North America, equating to almost $200 billion in debt.
Table 2
Oil And Gas Upstream Rating And Outlook Revisions Since March 2020 | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|
Issuer | Rating action date | To | From | Report | ||||||
Antero Resources Corp. | 3/27/2020 | B-/Negative | B+/Negative | Antero Resources Corp. Downgraded To 'B-' On Difficult Market Conditions; Outlook Negative | ||||||
Apache Corp. | 3/26/2020 | BB+/Negative | BBB/Stable | Apache Corp. Downgraded To 'BB+', Outlook Negative | ||||||
Ascent Resources Utica Holdings LLC | 3/30/2020 | CCC+/Negative | B/Negative | Ascent Resources Utica Holdings LLC Downgraded To 'CCC+'; Outlook Negativeearch Updates | ||||||
Baker Hughes Co. | 3/25/2020 | A-/Negative | A-/Stable | Baker Hughes Co. Outlook Revised To Negative From Stable On Difficult Market Conditions; 'A-' Ratings Affirmed | ||||||
BEP Ulterra Holdings. Inc. | 4/8/2020 | B-/Negative | B-/Stable | BEP Ulterra Holdings Inc. Outlook Revised To Negative On Diminishing Exploration And Production Activity | ||||||
Berry Petroleum Corp. | 4/3/2020 | B-/Negative | B /Stable | Berry Petroleum Corp. Rating Lowered To 'B-' On Lower Commodity Prices; Outlook Negative | ||||||
Bruin E&P Partners LLC | 4/13/2020 | CCC-/Negative | CCC+/Negative | Bruin E&P Partners LLC Downgraded To 'CCC-' Following Advisor Hires, Curtailed Drilling; Outlook Negative | ||||||
Callon Petroleum Co. | 4/2/2020 | B-/Negative | B+/Stable | Callon Petroleum Co. Downgraded To 'B-' On Weakening Financials; Outlook Negative | ||||||
Centennial Resource Development, Inc. | 3/27/2020 | CCC+/Negative | B+/Stable | Centennial Resource Development Inc. Downgraded To 'CCC+' From 'B+' On Sharp Drop In Commodity Prices; Outlook Negative | ||||||
Centennial Resource Development, Inc. | 4/23/2020 | CC/Negative | CCC+/Negative | Centennial Resource Development Inc. Downgraded To 'CC' From 'CCC+' On Distressed Exchange; Outlook Negative | ||||||
Chaparral Energy Inc. | 4/14/2020 | CCC-/Negative | CCC+/Negative | Chaparral Energy Inc. Downgraded To 'CCC-' From 'CCC+' Following Revolver Drawdown; Outlook Negative | ||||||
Chesapeake Energy Corp. | 4/21/2020 | CCC/Negative | CCC/Negative | Chesapeake Energy Corp. Cumulative Convertible Preferred Securities Rating Lowered To 'D' On Dividend Payment Suspension | ||||||
Chesapeake Energy Corp. | 5/1/2020 | CC/Negative | CCC/Negative | Chesapeake Energy Corp. Issuer Credit Rating Lowered To 'CC' On Likely Default; Outlook Negative | ||||||
Chevron Corp. | 3/23/2020 | AA/Negative | AA/Stable | Chevron Corp. Outlook Revised To Negative On Weaker-Than-Expected Financial Performance In 2020, Ratings Affirmed | ||||||
Cimarex Energy Co. | 3/26/2020 | BBB-/Negative | BBB-/Stable | Cimarex Energy Co. Outlook Revised To Negative On Weaker Financial Measures; 'BBB-' Rating Affirmed | ||||||
CNX Resources Corp. | 4/8/2020 | B+/Negative | B+/Negative | CNX Resources Corp. Ratings Affirmed On Favorable Hedges; Outlook Negative | ||||||
Comstock Resources Inc. | 3/23/2020 |
CCC+/Stable |
B/Negative | Comstock Resources Inc. Downgraded To 'CCC+'; Outlook Stable | ||||||
Concho Resources Inc. | 3/26/2020 | BBB-/Stable | BBB-/Positive | Concho Resources Inc. Outlook Revised To Stable From Positive On Weaker Commodity Prices; Ratings Affirmed | ||||||
ConocoPhillips | 3/26/2020 | A/Negative | A/Stable | ConocoPhillips 'A' Ratings Affirmed; Outlook Revised To Negative On Lower Oil Price Assumptions | ||||||
Continental Resources Inc. | 3/27/2020 | BB+/Negative | BBB-/Stable | Continental Resources Inc. Lowered To 'BB+' From 'BBB-' On Weaker Credit Measures, Refinancing Risk; Outlook Negative | ||||||
CrownRock L.P. | 4/2/2020 | B+/Stable | B+/Stable | CrownRock L.P. Ratings Affirmed On Solid Commodity Price Hedges And Expectation Of Free Cash Flow; Outlook Stable | ||||||
Devon Energy Corp. | 3/27/2020 | BBB-/Negative | BBB-/Stable | Devon Energy Corp. Outlook Revised To Negative On Weaker Credit Measures; 'BBB-' Ratings Affirmed | ||||||
Diamond Offshore Drilling Inc. | 4/16/2020 | CC/Negative | CCC+/Stable | Diamond Offshore Drilling Inc. Downgraded To 'CC' From 'CCC+' On Missed Interest Payment; Outlook Negative | ||||||
Diamond Offshore Drilling Inc. | 4/24/2020 | D/-- | CC/Negative | Diamond Offshore Drilling Inc. Downgraded To 'D' On Weakening Market Conditions And Missed Interest Payment | ||||||
Diamondback Energy Inc. | 3/25/2020 | BBB-/Negative | BBB-/Stable | Diamondback Energy Inc. Outlook Revised To Negative On Weaker Credit Metrics; 'BBB-' Rating Affirmed | ||||||
Encino Acquisition Partners LLC | 3/26/2020 | B-/Negative | B+/Negative | Encino Acquisition Partners LLC Downgraded To 'B-'; Outlook Remains Negative | ||||||
Endeavor Energy Resources L.P. | 4/2/2020 | BB-/Negative | BB-/Stable | Endeavor Energy Resources L.P. Outlook Revised To Negative On Weaker Leverage Metrics And Expected Cash OutflowsS&P Global Ratings > Research Updates | ||||||
EnVen Energy Corp. | 4/8/2020 | B-/Negative | B/Negative | EnVen Energy Corp. Downgraded To 'B-' On Weaker Credit Metrics; Outlook Negative | ||||||
EOG Resources Inc. | 3/18/2020 | A-/Negative | A-/Stable | EOG Resources Inc. Outlook Revised To Negative On Weaker Credit Metrics; 'A-' Rating Affirmed | ||||||
EQT Corp. | 4/1/2020 | BB-/negative | BB+/Negative | EQT Corp. Downgraded To 'BB-' On Difficult Market Conditions; Outlook Negative | ||||||
Extraction Oil & Gas Inc. | 4/3/2020 | CCC+/Negative | B-/Negative | Extraction Oil & Gas Inc. Rating Lowered To 'CCC+' From 'B-' On Lower Price Assumptions; Outlook Negative | ||||||
Exxon Mobil Corp. | 3/16/2020 | AA/Negative | AA+/Negative | Exxon Mobil Corp. Downgraded To 'AA' As Lower Oil Price Assumption Weakens Cash Flow/Leverage Metrics; Outlook Negative | ||||||
Fieldwood Energy LLC | 4/8/2020 | CCC/Negative | B-/Stable | Fieldwood Energy LLC Downgraded To 'CCC' On Weakening Financial Measures, Liquidity Concerns; Outlook Negative | ||||||
Forum Energy Technologies Inc. | 4/3/2020 | CCC/Negative | B-/Negative | Forum Energy Technologies Inc. Downgraded To 'CCC' On Unsustainable Leverage, Refinancing Risk; Outlook Negative | ||||||
Forum Energy Technologies Inc. | 4/15/2020 | CC/Negative | CCC/Negative | Forum Energy Technologies Inc. Downgraded To 'CC' On Distressed Tender Offer; Outlook Negative | ||||||
FTS International Inc. | 4/20/2020 | CCC-/Negative | CCC+/Negative | FTS International Inc. Downgraded To 'CCC-' On Weak Drilling Activity, Heightened Restructuring Risk; Outlook Negative | ||||||
Gavilan Resources LLC | 4/1/2020 | CCC-/Negative | CCC+/Negative | Gavilan Resources LLC Downgraded To 'CCC-' On Likely Borrowing Base Deficiency; Outlook Negative | ||||||
Gavilan Resources LLC | 4/7/2020 | D/-- | CCC-/Negative | Gavilan Resources LLC Ratings Lowered To 'D' On Missed Interest Payment | ||||||
Great Western Petroleum LLC | 3/31/2020 | CCC+/Negative | B-/Stable | Great Western Petroleum LLC Rating Lowered To 'CCC+' On Refinancing Risk; Outlook Negative | ||||||
Gulfport Energy Corp. | 3/20/2020 | CCC+/Negative | B/Negative | Gulfport Energy Corp. Downgraded To 'CCC+' On Weakening Financials; Outlook Negative | ||||||
Halliburton Co. | 3/26/2020 | BBB+/Negative | A-/Negative | Halliburton Co. Rating Lowered To 'BBB+' On Expected Weaker Credit Measures Due To Lower Prices; Outlook Negative | ||||||
Helmerich & Payne Inc. | 3/26/2020 | BBB+/Negative | BBB+/Stable | Outlook On Helmerich & Payne Inc. Revised To Negative On Weaker Credit Metrics; 'BBB+' Rating Affirmed | ||||||
Hess Corp. | 3/27/2020 | BBB-/Negative | BBB-/Stable | Hess Corp. 'BBB-' Rating Affirmed, Outlook Negative | ||||||
HGIM Corp. | 4/13/2020 | CCC+/Negative | B-/Stable | HGIM Corp. Downgraded To 'CCC+' On Unsustainable Leverage, Weak Market Conditions; Outlook Negative | ||||||
HighPoint Resources Corp. | 3/27/2020 | CCC+/Negative | B/Stable | HighPoint Resources Corp. Downgraded To 'CCC+' On Liquidity Risks; Outlook Negative | ||||||
Hilcorp Energy I L.P. | 4/7/2020 | BB-/Watch Neg | BB+/Watch Neg | Hilcorp Downgraded To 'BB-' On Weak Credit Metrics, Ratings Remain On CreditWatch Negative On Proposed BP Acquisition | ||||||
Hornbeck Offshore Services Inc. | 4/2/2020 | D/-- | SD/-- | Hornbeck Offshore Services Inc. Downgraded To 'D' From 'SD' On Expected Chapter 11 Filing | ||||||
KLX Energy Services Holding Inc. | 3/27/2020 | CCC+/Stable | B-/Stable | KLX Energy Services Holdings Inc. Downgraded To 'CCC+' As Sector Demand Deteriorates; Outlook Stable | ||||||
Kosmos Energy Ltd. | 4/7/2020 | B/Negative | B+/Stable | Kosmos Energy Ltd. Downgraded To 'B' On Weaker Measures From Steep Decline In Commodity Prices; Outlook Negative | ||||||
Laredo Petroleum Inc. | 4/2/2020 | B-/Negative | B+/Negative | Laredo Petroleum Inc. Downgraded To 'B-' From 'B+' On Expected Weaker Credit Metrics; Outlook Negative | ||||||
Lonestar Resources U.S. Inc. | 3/18/2020 | CCC+/Negative | B-/Stable | Lonestar Resources U.S. Inc. Downgraded To 'CCC+' On Tightening Liquidity; Outlook Negative | ||||||
Lonestar Resources U.S. Inc. | 4/20/2020 | CCC-/Negative | CCC+/Negative | Lonestar Resources U.S. Inc. Downgraded To 'CCC-' On Liquidity Risks; Outlook Negative | ||||||
Magnolia Oil & Gas Corp. | 4/7/2020 | B+/Negative | B+/Negative | Magnolia Oil & Gas Corp. Outlook Revised To Negative On Weaker Credit Measures In 2020; Ratings Affirmed | ||||||
Marathon Oil Corp. | 3/26/2020 | BBB-/Negative | BBB/Stable | Marathon Oil Corp. Downgraded To 'BBB-' On Weak Market Conditions; Outlook Negative | ||||||
Matador Resources Co. | 3/27/2020 | B-/Negative | B+/Stable | Moss Creek Resources Holdings Inc. Downgraded To 'CCC+' After Steep Drop In Commodity Prices; Outlook Negative | ||||||
MD America Energy LLC | 4/14/2020 | CCC/Negative | B-/Stable | MD America Energy LLC Downgraded To 'CCC' On Default Risk, Then Withdrawn At Issuer Request | ||||||
Moss Creek Resources Holdings Inc. | 4/3/2020 | CCC+/Negative | B/Stable | Moss Creek Resources Holdings Inc. Downgraded To 'CCC+' After Steep Drop In Commodity Prices; Outlook Negative | ||||||
Murphy Oil Corp. | 3/31/2020 | BB/Negative | BB+/Stable | Murphy Oil Corp. Downgraded To 'BB' On Weaker Credit Metrics And Difficult Market Conditions; Outlook Negative | ||||||
Nabors Industries Ltd. | 4/1/2020 | B-/Negative | BB-/Negative | Nabors Industries Ltd. Downgraded To 'B-' From 'BB-' On Weak Market Conditions; Outlook Negative | ||||||
National Fuel Gas Co. | 3/27/2020 | BBB-/Negative | BBB/Stable | National Fuel Gas Co. Downgraded To 'BBB-' As Lower Price Assumptions Weaken Credit Metrics; Outlook Negative | ||||||
National Oilwell Varco Inc. | 3/26/2020 | BBB+/Negative | BBB+/Stable | National Oilwell Varco Inc. Outlook Revised To Negative On Weaker Market Conditions; Ratings Affirmed | ||||||
NexTier Oilfield Solutions Inc. | 4/3/2020 | B/Negative | B+/Stable | NexTier Oilfield Solutions Inc. Downgraded To 'B' As Oilfield Services Demand Collapses; Outlook Negative | ||||||
Nine Energy Service Inc. | 3/20/2020 | CCC+/Stable | B-/Stable | Nine Energy Service Inc. Downgraded To 'CCC+'; Outlook Stable | ||||||
Noble Corp.n PLC | 4/17/2020 | CCC-/Negative | CCC+/Stable | Noble Corp. PLC Downgraded To 'CCC-' On Likelihood Of Distressed Exchange Or Restructuring; Outlook Negative | ||||||
Noble Energy Inc. | 3/27/2020 | BBB-/Negative | BBB/Stable | Noble Energy Inc. Lowered to 'BBB-'; Outlook Negative | ||||||
Northern Oil & Gas Inc. | 4/3/2020 | CCC+/Negative | B-/Stable | Northern Oil and Gas Inc. Downgraded To ‘CCC+’ From ‘B-’ On Lower Commodity Prices; Outlook Negative | ||||||
Oasis Petroleum Inc. | 3/26/2020 | CCC+/Negative | B+/Stable | Oasis Petroleum Inc. Downgraded To 'CCC+' On Weaker Credit Metrics, Refinancing Risk; Outlook Negative | ||||||
Occidental Petroleum Corp. | 3/25/2020 | BB+/Watch Neg | BBB/Stable | Occidental Petroleum Corp. Ratings Lowered To 'BB+' From 'BBB' On Expected Weaker Credit Measures; On Watch Negative | ||||||
Oceaneering International Inc. | 4/6/2020 | B+/Negative | BB/Negative | Oceaneering International Inc. Ratings Lowered To 'B+' On Weaker Credit Metrics; Outlook Negative | ||||||
Ovintiv Inc. | 3/26/2020 | BBB-/Negative | BBB/Stable | Ovintiv Inc. Downgraded To 'BBB-' On Lower Oil And Natural Gas Price Assumptions; Outlook Negative | ||||||
Pacific Drilling S.A. | 4/17/2020 | CCC-/Negative | CCC+/Negative | Pacific Drilling S.A. Downgraded To 'CCC-' On Weak Sector Conditions, Risk Of Distressed Exchange; Outlook Negative | ||||||
Parsley Energy LLC. | 4/1/2020 | BB/Stable | BB /Stable | Parsley Energy LLC 'BB' Ratings Affirmed; Outlook Stable | ||||||
Patterson-UTI Energy Inc. | 3/26/2020 | BB+/Negative | BBB/Negative | Patterson-UTI Energy Inc. Downgraded To 'BB+' As Capital Expenditure Cuts Weaken Credit Metrics; Outlook Negative | ||||||
PDC Energy, Inc. | 4/3/2020 | BB/Negative | BB/Stable | PDC Energy Inc. 'BB' Rating Affirmed; Outlook Negative Due To Weaker Commodity Prices | ||||||
Pioneer Natural Resources Co. | 4/1/2020 | BBB/Stable | BBB/Stable | Pioneer Natural Resources Co. Ratings Affirmed, Outlook Stable, On Strong Balance Sheet, Hedging, And Spending Cuts | ||||||
Profrac Services LLC | 4/3/2020 | CCC/Negative | B-/Negative | ProFrac Services LLC Downgraded To 'CCC' On Tightening Liquidity, Outlook Negative | ||||||
QEP Resources Inc. | 4/1/2020 | B/Negative | B+/Negative | QEP Resources Inc. Downgraded To 'B' On Weaker Credit Measures After Sharp Decline In Commodity Prices; Outlook Negative | ||||||
Range Resources Corp. | 3/31/2020 | B/Negative | BB-/Negative | Range Resources Corp. Downgraded To 'B' On Lower Commodity Prices; Outlook Negative | ||||||
Sable Permian Resources Finance LLC | 4/8/2020 | D/-- | CCC+/Negative | Sable Permian Resources Finance LLC Downgraded To 'D' On Missed Interest Payment | ||||||
Schlumberger Ltd. | 3/26/2020 | A/Negative | A+/Negative | Schlumberger Ltd. Downgraded To 'A' On Expected Drop In OFS Demand; Outlook Negative | ||||||
SM Energy Co. | 4/1/2020 | B-/Negative | BB-/Stable | SM Energy Co. Downgraded To 'B-' On Increased Refinancing Risk After Steep Drop In Commodity Prices; Outlook Negative | ||||||
SM Energy Co. | 4/30/2020 | CC/Negative | B-/Negative | SM Energy Co. Downgraded To 'CC' On Distressed Exchange; Outlook Negative | ||||||
Southwestern Energy Co. | 4/7/2020 | BB-/Negative | BB/Negative | Southwestern Energy Co. Downgraded To 'BB-' From 'BB' On Weaker Cash Flow And Leverage Metrics; Outlook Negative | ||||||
TechnipFMC plc | 4/3/2020 | BBB+/Negative | BBB+/Watch Neg | TechnipFMC PLC 'BBB+' Ratings Affirmed And Removed From CreditWatch; Outlook Negative | ||||||
Transocean Ltd. | 4/20/2020 | CCC/Negative | CCC+/Negative | Transocean Ltd. Downgraded To 'CCC' On Deteriorating Industry Conditions, Potential Debt Exchange; Outlook Negative | ||||||
Ultra Petroleum Corp. | 4/17/2020 | D/-- | CCC-/Negative | Ultra Petroleum Corp. Downgraded To 'D' From 'CCC-' Following Missed Interest Payment On Unsecured Notes | ||||||
Valaris PLC | 4/20/2020 | CCC-/Negative | CCC+/Negative | Valaris PLC Downgraded To 'CCC-'; Outlook Negative | ||||||
Vantage Drilling International | 4/20/2020 | CCC/Negative | CCC+/Stable | Vantage Drilling International Downgraded To 'CCC' On Risk Of Distressed Debt Exchange; Outlook Negative | ||||||
W&T Offshore Inc. | 4/8/2020 | CCC+/Negative | B-/Stable | W&T Offshore Inc. Downgraded To 'CCC+' From 'B-' On Weak Financial Measures, Market Conditions; Outlook Negative | ||||||
Weatherford International plc | 4/2/2020 | CCC+/Negative | B-/Negative | Weatherford International plc Downgraded To 'CCC+' On Weak Market Conditions; Outlook Negative | ||||||
Weatherford International plc | 4/15/2020 | CCC/Negative | CCC+/Negative | Weatherford International PLC Downgraded To 'CCC' As It Seeks Debt Reduction; Outlook Negative | ||||||
Whiting Petroleum Corp. | 4/1/2020 | D/-- | CCC+/Negative | Whiting Petroleum Corp. Downgraded To 'D' From 'CCC+' On Announced Commencement Of Chapter 11 Bankruptcy Proceedings | ||||||
WPX Energy Inc. | 3/23/2020 | BB-/Stable | BB-/Watch Pos | WPX Energy Inc. 'BB-' Ratings Affirmed And Removed From CreditWatch On Close Of Felix Energy Acquisition; Outlook Stable | ||||||
Note: Ratings are of May 8, 2020. Source: S&P Global Ratings. |
This report does not constitute a rating action.
Primary Credit Analyst: | Thomas A Watters, New York (1) 212-438-7818; thomas.watters@spglobal.com |
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