Competitive cost and low-risk, upstream activities Moderate leverage and strong coverage ratios Significant reserve base Changing regulations in Argentina and Bolivia Low geographic diversification Capital-intensive business that requires continuous reinvestment to sustain production levels Standard & Poor's Ratings Services' ratings on Pan American Energy LLC (PAE) reflect the company's heavy concentration in Argentina, which exposes PAE to the operating risks in a highly uncertain and rapidly changing economic and regulatory environment, as well as a significant need for capital expenditures to develop its large reserve base. The ratings also reflect the company's adequate reserve life, competitive operating costs, outstanding credit measures, and sound financial profile. The foreign currency rating on PAE is one notch above that on the Republic of...
Companies mentioned in this report are:
- Pan American Energy LLC
- BP PLC
- Argentina (Republic of)
- Pan American Energy LLC Sucursal Argentina
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Research Type: Full Analysis