Clayton Williams Energy Inc. Jul 09
Standard & Poors, July 2009
Abstract
Permian Basin reserves that provide more stable production and development opportunities; and Near-term hedges on about 40% of expected production. A small reserve base; An aggressive growth and exploration program strategy; High drilling costs that could limit profitability at midcycle price levels; and Elevated debt leverage. The ratings on Clayton Williams Energy Inc. reflect its aggressive growth and exploration strategy, high debt leverage, elevated cost structure, and small reserve base. Standard & Poor's Ratings Services' ratings also incorporate the company's high property operatorship, growing crude oil production, and significant ownership by management and the Clayton Williams family. We consider the company's business risk profile to be vulnerable, highlighted by Clayton Williams' position as a small, independent exploration and production (E&P)...
Companies mentioned in this report are: Clayton Williams Energy Inc.
Action: Review
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
Clayton Williams Energy Inc.
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