Forest Oil Corp. Outlook Revised To Negative From Stable On Potential Excessive Leverage; Ratings Affirmed Mar 12
- Language: English
- Published: March 2012
The rating on Denver-based Forest Oil Corp., an oil and gas exploration and production (E&P) company, reflects the capital-intensive and cyclical nature of the E&P industry and a production mix that is heavily weighted toward weak natural gas prices. Ratings also reflect the company's good liquidity, onshore geographic diversity, and the relatively low-risk nature of its drilling program. Standard & Poor's Ratings Services characterizes Forest's business profile as fair. The company had 2.2 trillion cubic feet equivalent of estimated proved reserves (60% proved developed and 78% natural gas) as of year-end 2010, leaving Forest as one of the largest E&P companies at the 'BB-' rating category. Revenues derived from high-priced liquids improved to 50% in the fourth quarter of 2010...
Companies mentioned in this report are: Forest Oil 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.
This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.
SHOW LESS READ MORE >
Forest Oil Corp.