PetroChina Company Limited Oil & Gas Exploration and Production Operations and Cost Analysis - Q2, 2011
- Published: October 2011
Exposure to cyclicality in the oil upstream industry Weak competitive position in terms of size, and less-than-adequate liquidity Expansion- and acquisition-related execution risk Proven record of operation in Chinese oilfields Favorable production sharing contracts with PetroChina Co. Ltd. The rating on MIE Holdings Corp. (MIEH) reflects the company's exposure to cyclicality in the oil upstream industry, its weak competitive position, expansion- and acquisition-related execution risk, and less-than-adequate liquidity. The company's proven record of operation in Chinese oilfields and favorable production sharing contracts (PSCs) with PetroChina Co. Ltd. (not rated) temper these weaknesses. We expect that MIEH's operating cash flow will be volatile depending on fluctuations in oil prices. In 2009, the company's cash from operations was slightly negative when oil...
Companies mentioned in this report are: MIE Holdings Corp.
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis