BULLETIN: Unocal to Write Down $86 Million on Some Gulf of Mexico Properties Jan 02
- ID: 1887137
- January 2002
- Region: Mexico
- Standard & Poors
Standard & Poor's said today that Unocal Corp.'s (BBB+/Positive/A-2) anticipated $86 million noncash after-tax impairment charge on certain Gulf of Mexico oil and gas properties will not result in changes to the company's ratings or outlook. The writedown is largely related to lower year-over-year commodity prices. Although the impairment charge has no immediate cash impact, it nonetheless unfavorably affects equity levels and points to the economic erosion of certain reserves. Still, Standard & Poor's believes Unocal's very large and geographically diverse reserve base, relatively low production costs, attractive medium-term production profile, and relatively conservative financial policies largely offset the credit impacts of more normalized commodity prices....
Companies mentioned in this report are: Unocal Corp.
Action: S&P Event
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