New York, January 21, 2016 -- Moody's Investors Service (Moody's) placed the ratings of
69 US exploration and production (E&P) and oilfield services companies
on review for downgrade. A list of the companies and rating actions
appears below.
RATINGS RATIONALE
Oil prices have deteriorated substantially in the past few weeks and have
reached nominal price lows not seen in more than a decade. Moody's
has adjusted its view downward for the likely range of prices.
We see a substantial risk that prices may recover much more slowly over
the medium term than many companies expect, as well as a risk that
prices might fall further. Even under a scenario with a modest
recovery from current prices, producing companies and the drillers
and service companies that support them will experience rising financial
stress with much lower cash flows.
Today's review for downgrade considers that much weaker industry
fundamentals have potential to warrant rating changes for all companies
covered in this press release. While this review focuses on companies
rated in the range from A1 to B3, Moody's is also reevaluating
higher and lower rated companies in the context of industry conditions.
The higher rated companies on average are somewhat more resilient to low
oil prices and Moody's has recently downgraded many of the lower
rated companies.
As part of its ongoing assessment of energy markets, Moody's
sharply reduced its oil price assumptions on January 21 in light of continuing
oversupply in the global oil markets and demand growth that remains tepid.
Iran is poised to add more than 500,000 barrels per day to global
supply while OPEC and many non-OPEC oil producers continue to produce
without restraint as they battle for market share. The addition
of Iranian oil to the market this year will offset or exceed expected
declines in US production of about 500,000 barrels per day.
Increased production vastly exceeds growth in oil consumption, given
modest growth in consumption from major consumers such as China,
India and the US. Production now exceeds demand by about 2 million
barrels per day, adding to already high global oil stocks.
Our natural gas and natural gas liquids price assumptions are unchanged.
Natural gas production in the US continues to increase while costs decline
and producers generate cash returns at ever-lower prices,
although in many cases these appear insufficient to service their debt.
Lower oil prices will further weaken cash flows for E&P companies
and the upstream portion of integrated oil and gas companies. This
will cause further deterioration in financial ratios, including
deeper negative free cash flow. Most companies are unable to internally
fund sustaining levels of capital spending at current market prices.
Current industry conditions also reduce the value of assets offered for
sale and have made accessing capital markets more expensive for some companies
and unavailable for others. While integrated oil and gas companies
benefit from the profitability of their downstream operations, the
upstream operations represent a much larger part of the capital employed
and cash flow for most of these companies.
Projected capex reductions by E&P and integrated oil companies will
severely challenge the drilling and oilfield services (OFS) sector beyond
what it had already experienced in 2015. Moody's expects
OFS sector EBITDA to drop by another 25%-30% in 2016,
testing the viability of the capital structures of many of these businesses.
Even if commodity prices recover, OFS companies are unlikely to
gain any pricing power because of the continued excess capacity across
most OFS subsectors. As a result, Moody's expects credit
quality to deteriorate for all OFS players in 2016. Smaller and
more leveraged OFS companies in particular will struggle to comply with
debt agreement covenants, service their debt and access the capital
markets, raising their risk of default. Even large,
diversified investment grade OFS companies will have less financial flexibility
and increasing financial leverage. Drillers with significant contract
expirations will also suffer material credit degradation as contracts
are either not renewed or are renewed at rates that produce far less revenue.
Although all issuers in these sectors have been adversely affected by
declining prices, severity varies substantially by issuer.
Accordingly, the range of possible outcomes upon conclusion of the
review for given issuers varies from possible confirmation of ratings
to multi-notch downgrades. Multi-notch downgrades
are particularly likely among issuers whose activities are centered in
North America, where natural gas prices have declined dramatically
along with oil prices. Moody's expects to conclude a majority
of the reviews by the end of the first quarter.
The principal methodology used in rating Approach Resources Inc.,
Bill Barrett Corp, Bonanza Creek Energy, Inc.,
Breitburn Energy Partners L.P., Carrizo Oil &
Gas, Inc., Chaparral Energy, Inc.,
Chesapeake Energy Corporation, Clayton Williams Energy, Inc.,
CrownRock, L.P., Diamondback Energy, Inc.,
Endeavor Energy Resources, L.P., EV Energy Partners,
L.P., Fieldwood Energy LLC, Gulfport Energy
Corporation, Jonah Energy LLC, Jones Energy Holdings,
LLC, Laredo Petroleum, Inc., Legacy Reserves
LP, Matador Resources Company, Memorial Production Partners
LP, Memorial Resource Development Corp., Northern Oil
and Gas, Inc, Oasis Petroleum Inc, Parsley Energy LLC,
PDC Energy, Resolute Energy Corporation, Rice Energy Inc.,
RSP Permian, Inc., Sanchez Energy Corporation,
Stone Energy Corporation, Talos Production LLC, Templar Energy,
LLC, Vanguard Natural Resources, LLC, Vine Oil &
Gas, LP, and W&T Offshore, Inc. was Global
Independent Exploration and Production Industry published in December
2011. The principal methodology used in rating Atwood Oceanics,
Inc., Bristow Group Inc., Cactus Wellhead LLC,
CJ Holding Co., Compressco Partners, L.P.,
Diamond Offshore Drilling, Inc., ENSCO International
Incorporated, Ensco plc, Era Group Inc., FMC
Technologies, Inc., Forum Energy Technologies,
Inc., GulfMark Offshore, Inc., HGIM CORP.,
Hornbeck Offshore Services, Inc., Light Tower Rentals,
Inc., Nabors Industries Inc., National Oilwell
Varco, Inc., Noble Corporation (Cayman Island),
Noble Drilling Corporation, Noble Holding International Limited,
Oceaneering International, Inc., Parker Drilling Company,
PHI, Inc., Pioneer Energy Services Corp.,
Pride International, Inc., Prowler Acquisition Corp,
Rowan Companies, Inc., Schlumberger Holdings Corporation,
SEACOR Holdings Inc., SESI, L.L.C.,
Transocean Inc., UTEX Industries, Inc.,
Weatherford International Ltd. (Bermuda), and Weatherford
International, LLC (Delaware) was Global Oilfield Services Industry
Rating Methodology published in December 2014. Please see the Credit
Policy page on www.moodys.com for a copy of these methodologies.
On Review for downgrade:
..Issuer: Diamond Offshore Drilling, Inc.
....Senior Unsecured Commercial Paper,
P-2, Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
Baa2, Placed on Review for downgrade
..Issuer: National Oilwell Varco, Inc.
....Senior Unsecured Commercial Paper,
P-1, Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
A2, Placed on Review for downgrade
..Issuer: Noble Corporation (Cayman Island)
....Backed Senior Unsecured Commercial Paper,
P-3, Placed on Review for downgrade
..Issuer: Noble Drilling Corporation (assumed by Noble
Holding (U.S.) Corporation)
....Backed Senior Unsecured Regular Bond/Debenture,
Baa3, Placed on Review for downgrade
..Issuer: Noble Holding International Limited
....Backed Senior Unsecured Shelf, (P)Baa3,
Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
Baa3, Placed on Review for downgrade
....Backed Senior Unsecured Regular Bond/Debenture,
Baa3, Placed on Review for downgrade
..Issuer: Schlumberger Holdings Corporation
.... Issuer Rating, A2, Placed
on Review for downgrade
....Backed Senior Unsecured Commercial Paper,
P-1, Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
A2, Placed on Review for downgrade
..Issuer: SEACOR Holdings Inc.
.... Corporate Family Rating, Ba3,
Placed on Review for downgrade
.... Probability of Default Rating,
Ba3-PD, Placed on Review for downgrade
....Preferred Shelf, (P)B2, Placed
on Review for downgrade
....Preferred Shelf Non-cumulative,
(P)B2, Placed on Review for downgrade
....Subordinate Shelf, (P)B2,
Placed on Review for downgrade
....Senior Unsecured Shelf, (P)Ba3,
Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
Ba3 (LGD4), Placed on Review for downgrade
..Issuer: Transocean Inc.
.... Corporate Family Rating, Ba2,
Placed on Review for downgrade
.... Probability of Default Rating,
Ba2-PD, Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
Ba2 (LGD4), Placed on Review for downgrade
....Backed Senior Unsecured Regular Bond/Debenture,
Ba2 (LGD4), Placed on Review for downgrade
..Issuer: Chesapeake Energy Corporation
.... Corporate Family Rating, B2,
Placed on Review for downgrade
.... Probability of Default Rating,
B2-PD, Placed on Review for downgrade
....Senior Secured Regular Bond/Debenture,
B1 (LGD3), Placed on Review for downgrade
....Senior Unsecured Conv./Exch.
Bond/Debenture, B3 (LGD5), Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
B3 (LGD5), Placed on Review for downgrade
....Senior Unsecured Shelf, (P)B3,
Placed on Review for downgrade
..Issuer: Compressco Partners, L.P.
.... Corporate Family Rating, B1,
Placed on Review for downgrade
.... Probability of Default Rating,
B1-PD, Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
B2 (LGD5), Placed on Review for downgrade
..Issuer: Era Group Inc.
.... Corporate Family Rating, B1,
Placed on Review for downgrade
.... Probability of Default Rating,
B1-PD, Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
B2 (LGD5), Placed on Review for downgrade
..Issuer: FMC Technologies, Inc.
.... Issuer Rating, Baa2, Placed
on Review for downgrade
....Senior Unsecured Commercial Paper,
P-2, Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
Baa2, Placed on Review for downgrade
..Issuer: PHI, Inc.
.... Corporate Family Rating, B1,
Placed on Review for downgrade
.... Probability of Default Rating,
B1-PD, Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
B2 (LGD4), Placed on Review for downgrade
..Issuer: Rowan Companies, Inc.
....Senior Unsecured Regular Bond/Debenture,
Baa3, Placed on Review for downgrade
....Backed Senior Unsecured Regular Bond/Debenture,
Baa3, Placed on Review for downgrade
..Issuer: Bill Barrett Corp
.... Corporate Family Rating, B2,
Placed on Review for downgrade
.... Probability of Default Rating,
B2-PD, Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
B3 (LGD4), Placed on Review for downgrade
..Issuer: Breitburn Energy Partners L.P.
.... Corporate Family Rating, B2,
Placed on Review for downgrade
.... Probability of Default Rating,
B2-PD, Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
Caa1 (LGD5), Placed on Review for downgrade
..Issuer: Clayton Williams Energy, Inc.
.... Corporate Family Rating, B3,
Placed on Review for downgrade
.... Probability of Default Rating,
B3-PD, Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
Caa1 (LGD5), Placed on Review for downgrade
..Issuer: Laredo Petroleum, Inc.
.... Corporate Family Rating, B1,
Placed on Review for downgrade
.... Probability of Default Rating,
B1-PD, Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
B2 (LGD5), Placed on Review for downgrade
..Issuer: RSP Permian, Inc.
.... Corporate Family Rating, B2,
Placed on Review for downgrade
.... Probability of Default Rating,
B2-PD, Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
B3 (LGD5), Placed on Review for downgrade
..Issuer: Talos Production LLC
.... Corporate Family Rating, B3,
Placed on Review for downgrade
.... Probability of Default Rating,
B3-PD, Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
Caa1 (LGD5), Placed on Review for downgrade
..Issuer: W&T Offshore, Inc.
.... Corporate Family Rating, B3,
Placed on Review for downgrade
.... Probability of Default Rating,
B3-PD, Placed on Review for downgrade
....Senior Secured Bank Credit Facility,
B2 (LGD3), Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
Caa1 (LGD5), Placed on Review for downgrade
..Issuer: Forum Energy Technologies, Inc.
.... Corporate Family Rating, Ba2,
Placed on Review for downgrade
.... Probability of Default Rating,
Ba2-PD, Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
Ba3 (LGD5), Placed on Review for downgrade
..Issuer: Chaparral Energy, Inc.
.... Corporate Family Rating, B3,
Placed on Review for downgrade
.... Probability of Default Rating,
B3-PD, Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
Caa1 (LGD4), Placed on Review for downgrade
..Issuer: Templar Energy, LLC
.... Corporate Family Rating, B2,
Placed on Review for downgrade
.... Probability of Default Rating,
B2-PD, Placed on Review for downgrade
....Senior Secured Bank Credit Facility,
B3 (LGD4), Placed on Review for downgrade
..Issuer: CrownRock, L.P.
.... Corporate Family Rating, B3,
Placed on Review for downgrade
.... Probability of Default Rating,
B3-PD, Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
Caa1 (LGD4), Placed on Review for downgrade
..Issuer: Parsley Energy LLC
.... Corporate Family Rating, B3,
Placed on Review for downgrade
.... Probability of Default Rating,
B3-PD, Placed on Review for downgrade
....Backed Senior Unsecured Regular Bond/Debenture,
Caa1 (LGD5), Placed on Review for downgrade
..Issuer: PDC Energy
.... Corporate Family Rating, B1,
Placed on Review for downgrade
.... Probability of Default Rating,
B1-PD, Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
B2 (LGD5), Placed on Review for downgrade
..Issuer: Weatherford International Ltd. (Bermuda)
.... Corporate Family Rating, Ba1,
Placed on Review for downgrade
.... Probability of Default Rating,
Ba1-PD, Placed on Review for downgrade
....Backed Preferred Shelf, (P)Ba3,
Placed on Review for downgrade
....Backed Subordinate Shelf, (P)Ba2,
Placed on Review for downgrade
....Backed Senior Unsecured Shelf, (P)Ba1,
Placed on Review for downgrade
....Backed Senior Unsecured Regular Bond/Debenture,
Ba1 (LGD4), Placed on Review for downgrade
..Issuer: Weatherford International, LLC (Delaware)
....Backed Subordinate Shelf, (P)Ba2,
Placed on Review for downgrade
....Backed Senior Unsecured Shelf, (P)Ba1,
Placed on Review for downgrade
....Backed Senior Unsecured Regular Bond/Debenture,
Ba1 (LGD4), Placed on Review for downgrade
..Issuer: Carrizo Oil & Gas, Inc.
.... Corporate Family Rating, B1,
Placed on Review for downgrade
.... Probability of Default Rating,
B1-PD, Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
B2 (LGD5), Placed on Review for downgrade
..Issuer: Rice Energy Inc.
.... Corporate Family Rating, B2,
Placed on Review for downgrade
.... Probability of Default Rating,
B2-PD, Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
B3 (LGD5), Placed on Review for downgrade
..Issuer: Atwood Oceanics, Inc.
.... Corporate Family Rating, Ba3,
Placed on Review for downgrade
.... Probability of Default Rating,
Ba3-PD, Placed on Review for downgrade
....Senior Unsecured Shelf, (P)B1,
Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
B1 (LGD5), Placed on Review for downgrade
..Issuer: Bristow Group Inc.
.... Corporate Family Rating, Ba2,
Placed on Review for downgrade
.... Probability of Default Rating,
Ba2-PD, Placed on Review for downgrade
....Senior Secured Bank Credit Facility,
Ba1 (LGD2), Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
Ba3 (LGD5), Placed on Review for downgrade
..Issuer: CJ Holding Co.
.... Corporate Family Rating, B3,
Placed on Review for downgrade
.... Probability of Default Rating,
B3-PD, Placed on Review for downgrade
....Senior Secured Bank Credit Facility,
B3 (LGD3), Placed on Review for downgrade
..Issuer: ENSCO International Incorporated
....Senior Unsecured Regular Bond/Debenture,
Baa2, Placed on Review for downgrade
..Issuer: Ensco plc
....Senior Unsecured Commercial Paper,
P-2, Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
Baa2, Placed on Review for downgrade
..Issuer: Nabors Industries Inc.
....Backed Senior Unsecured Commercial Paper,
P-2, Placed on Review for downgrade
....Backed Senior Unsecured Regular Bond/Debenture,
Baa2, Placed on Review for downgrade
..Issuer: Oceaneering International, Inc.
....Senior Unsecured Bank Credit Facility,
Baa2, Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
Baa2, Placed on Review for downgrade
..Issuer: Parker Drilling Company
.... Corporate Family Rating, B1,
Placed on Review for downgrade
.... Probability of Default Rating,
B1-PD, Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
B2 (LGD4), Placed on Review for downgrade
..Issuer: Pride International, Inc.
....Senior Unsecured Regular Bond/Debenture,
Baa2, Placed on Review for downgrade
..Issuer: SESI, L.L.C.
....Senior Unsecured Regular Bond/Debenture,
Baa3, Placed on Review for downgrade
..Issuer: Diamondback Energy, Inc.
.... Corporate Family Rating, B1,
Placed on Review for downgrade
.... Probability of Default Rating,
B1-PD, Placed on Review for downgrade
....Backed Senior Unsecured Regular Bond/Debenture,
B2 (LGD5), Placed on Review for downgrade
..Issuer: Fieldwood Energy LLC
.... Corporate Family Rating, B2,
Placed on Review for downgrade
.... Probability of Default Rating,
B2-PD, Placed on Review for downgrade
....Senior Secured Bank Credit Facility,
B3 (LGD5), Placed on Review for downgrade
....Senior Secured Bank Credit Facility,
Ba2 (LGD2), Placed on Review for downgrade
..Issuer: Gulfport Energy Corporation
.... Corporate Family Rating, B1,
Placed on Review for downgrade
.... Probability of Default Rating,
B1-PD, Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
B2 (LGD4), Placed on Review for downgrade
..Issuer: Stone Energy Corporation
.... Corporate Family Rating, B3,
Placed on Review for downgrade
.... Probability of Default Rating,
B3-PD, Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
Caa1 (LGD4), Placed on Review for downgrade
..Issuer: Approach Resources Inc.
.... Corporate Family Rating, B2,
Placed on Review for downgrade
.... Probability of Default Rating,
B2-PD, Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
Caa1 (LGD5), Placed on Review for downgrade
..Issuer: Endeavor Energy Resources, L.P.
.... Probability of Default Rating,
B1-PD, Placed on Review for downgrade
.... Corporate Family Rating, B1,
Placed on Review for downgrade
....Backed Senior Unsecured Regular Bond/Debenture,
B3 (LGD5), Placed on Review for downgrade
..Issuer: Matador Resources Company
.... Corporate Family Rating, B2,
Placed on Review for downgrade
.... Probability of Default Rating,
B2-PD, Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
B3 (LGD5), Placed on Review for downgrade
..Issuer: Memorial Production Partners LP
.... Corporate Family Rating, B2,
Placed on Review for downgrade
.... Probability of Default Rating,
B2-PD, Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
Caa1 (LGD5), Placed on Review for downgrade
..Issuer: Memorial Resource Development Corp.
.... Corporate Family Rating, B2,
Placed on Review for downgrade
.... Probability of Default Rating,
B2-PD, Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
Caa1 (LGD5), Placed on Review for downgrade
..Issuer: GulfMark Offshore, Inc.
.... Corporate Family Rating, B3,
Placed on Review for downgrade
.... Probability of Default Rating,
B3-PD, Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
Caa1 (LGD4), Placed on Review for downgrade
..Issuer: HGIM CORP.
.... Corporate Family Rating, B3,
Placed on Review for downgrade
.... Probability of Default Rating,
Caa1-PD, Placed on Review for downgrade
....Senior Secured Bank Credit Facility,
B3 (LGD3), Placed on Review for downgrade
..Issuer: Hornbeck Offshore Services, Inc.
.... Corporate Family Rating, B2,
Placed on Review for downgrade
.... Probability of Default Rating,
B2-PD, Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
B2 (LGD4), Placed on Review for downgrade
..Issuer: Pioneer Energy Services Corp.
.... Corporate Family Rating, B2,
Placed on Review for downgrade
.... Probability of Default Rating,
B2-PD, Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
B3 (LGD5), Placed on Review for downgrade
..Issuer: Jonah Energy LLC
.... Corporate Family Rating, B1,
Placed on Review for downgrade
.... Probability of Default Rating,
B1-PD, Placed on Review for downgrade
....Senior Secured Bank Credit Facility,
B3 (LGD5), Placed on Review for downgrade
..Issuer: Northern Oil and Gas, Inc
.... Corporate Family Rating, B3,
Placed on Review for downgrade
.... Probability of Default Rating,
B3-PD, Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
Caa1 (LGD5), Placed on Review for downgrade
..Issuer: Oasis Petroleum Inc
.... Corporate Family Rating, B1,
Placed on Review for downgrade
.... Probability of Default Rating,
B1-PD, Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
B2 (LGD5), Placed on Review for downgrade
..Issuer: Vanguard Natural Resources, LLC
.... Corporate Family Rating, B3,
Placed on Review for downgrade
.... Probability of Default Rating,
B3-PD, Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
Caa2 (LGD5), Placed on Review for downgrade
..Issuer: Bonanza Creek Energy, Inc.
.... Corporate Family Rating, B2,
Placed on Review for downgrade
.... Probability of Default Rating,
B2-PD, Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
B3 (LGD4), Placed on Review for downgrade
..Issuer: EV Energy Partners, L.P.
.... Corporate Family Rating, B2,
Placed on Review for downgrade
.... Probability of Default Rating,
B2-PD, Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
Caa1 (LGD5), Placed on Review for downgrade
..Issuer: Resolute Energy Corporation
.... Corporate Family Rating, B3,
Placed on Review for downgrade
.... Probability of Default Rating,
B3-PD, Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
Caa2 (LGD5), Placed on Review for downgrade
..Issuer: Jones Energy Holdings, LLC
.... Corporate Family Rating, B2,
Placed on Review for downgrade
.... Probability of Default Rating,
B2-PD, Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
B3 (LGD5), Placed on Review for downgrade
....Backed Senior Unsecured Regular Bond/Debenture,
B3 (LGD5), Placed on Review for downgrade
..Issuer: Legacy Reserves LP
.... Corporate Family Rating, B2,
Placed on Review for downgrade
.... Probability of Default Rating,
B2-PD, Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
Caa1 (LGD5), Placed on Review for downgrade
..Issuer: Sanchez Energy Corporation
.... Corporate Family Rating, B2,
Placed on Review for downgrade
.... Probability of Default Rating,
B2-PD, Placed on Review for downgrade
....Senior Unsecured Regular Bond/Debenture,
B3 (LGD4), Placed on Review for downgrade
..Issuer: Vine Oil & Gas, LP
.... Corporate Family Rating, B3,
Placed on Review for downgrade
.... Probability of Default Rating,
B3-PD, Placed on Review for downgrade
....Senior Secured Bank Credit Facility,
B3 (LGD4), Placed on Review for downgrade
....Senior Secured Bank Credit Facility,
Caa2 (LGD5), Placed on Review for downgrade
..Issuer: Cactus Wellhead LLC
.... Corporate Family Rating, B3,
Placed on Review for downgrade
.... Probability of Default Rating,
B3-PD, Placed on Review for downgrade
....Senior Secured Bank Credit Facility,
B3 (LGD3), Placed on Review for downgrade
..Issuer: Light Tower Rentals, Inc.
.... Corporate Family Rating, B3,
Placed on Review for downgrade
.... Probability of Default Rating,
B3-PD, Placed on Review for downgrade
....Senior Secured Regular Bond/Debenture,
B3 (LGD4), Placed on Review for downgrade
..Issuer: Prowler Acquisition Corp
.... Corporate Family Rating, B3,
Placed on Review for downgrade
.... Probability of Default Rating,
B3-PD, Placed on Review for downgrade
....Senior Secured Bank Credit Facility,
B2 (LGD3), Placed on Review for downgrade
....Senior Secured Bank Credit Facility,
Caa2 (LGD6), Placed on Review for downgrade
..Issuer: UTEX Industries, Inc.
.... Corporate Family Rating, B3,
Placed on Review for downgrade
.... Probability of Default Rating,
B3-PD, Placed on Review for downgrade
....Senior Secured Bank Credit Facility,
B2 (LGD3), Placed on Review for downgrade
....Senior Secured Bank Credit Facility,
Caa2 (LGD5), Placed on Review for downgrade
Outlook Actions:
..Issuer: Diamond Offshore Drilling, Inc.
....Outlook, Changed To Rating Under
Review From Negative
..Issuer: National Oilwell Varco, Inc.
....Outlook, Changed To Rating Under
Review From Stable
..Issuer: Noble Holding International Limited
....Outlook, Changed To Rating Under
Review From Negative
..Issuer: Schlumberger Holdings Corporation
....Outlook, Changed To Rating Under
Review From Negative
..Issuer: SEACOR Holdings Inc.
....Outlook, Changed To Rating Under
Review From Stable
..Issuer: Transocean Inc.
....Outlook, Changed To Rating Under
Review From Negative
..Issuer: Chesapeake Energy Corporation
....Outlook, Changed To Rating Under
Review From Negative
..Issuer: Compressco Partners, L.P.
....Outlook, Changed To Rating Under
Review From Stable
..Issuer: Era Group Inc.
....Outlook, Changed To Rating Under
Review From Stable
..Issuer: FMC Technologies, Inc.
....Outlook, Changed To Rating Under
Review From Stable
..Issuer: PHI, Inc.
....Outlook, Changed To Rating Under
Review From Stable
..Issuer: Rowan Companies, Inc.
....Outlook, Changed To Rating Under
Review From Negative
..Issuer: Bill Barrett Corp
....Outlook, Changed To Rating Under
Review From Stable
..Issuer: Breitburn Energy Partners L.P.
....Outlook, Changed To Rating Under
Review From Negative
..Issuer: Clayton Williams Energy, Inc.
....Outlook, Changed To Rating Under
Review From Stable
..Issuer: Laredo Petroleum, Inc.
....Outlook, Changed To Rating Under
Review From Stable
..Issuer: RSP Permian, Inc.
....Outlook, Changed To Rating Under
Review From Stable
..Issuer: Talos Production LLC
....Outlook, Changed To Rating Under
Review From Negative
..Issuer: W&T Offshore, Inc.
....Outlook, Changed To Rating Under
Review From Stable
..Issuer: Forum Energy Technologies, Inc.
....Outlook, Changed To Rating Under
Review From Stable
..Issuer: Chaparral Energy, Inc.
....Outlook, Changed To Rating Under
Review From Stable
..Issuer: Templar Energy, LLC
....Outlook, Changed To Rating Under
Review From Stable
..Issuer: CrownRock, L.P.
....Outlook, Changed To Rating Under
Review From Stable
..Issuer: Parsley Energy LLC
....Outlook, Changed To Rating Under
Review From Positive
..Issuer: PDC Energy
....Outlook, Changed To Rating Under
Review From Stable
..Issuer: Weatherford International Ltd. (Bermuda)
....Outlook, Changed To Rating Under
Review From Stable
..Issuer: Weatherford International, LLC (Delaware)
....Outlook, Changed To Rating Under
Review From Stable
..Issuer: Carrizo Oil & Gas, Inc.
....Outlook, Changed To Rating Under
Review From Stable
..Issuer: Rice Energy Inc.
....Outlook, Changed To Rating Under
Review From Positive
..Issuer: Atwood Oceanics, Inc.
....Outlook, Changed To Rating Under
Review From Negative
..Issuer: Bristow Group Inc.
....Outlook, Changed To Rating Under
Review From Stable
..Issuer: CJ Holding Co.
....Outlook, Changed To Rating Under
Review From Negative
..Issuer: ENSCO International Incorporated
....Outlook, Changed To Rating Under
Review From Negative
..Issuer: Ensco plc
....Outlook, Changed To Rating Under
Review From Negative
..Issuer: Nabors Industries Inc.
....Outlook, Changed To Rating Under
Review From Negative
..Issuer: Oceaneering International, Inc.
....Outlook, Changed To Rating Under
Review From Stable
..Issuer: Parker Drilling Company
....Outlook, Changed To Rating Under
Review From Negative
..Issuer: Pride International, Inc.
....Outlook, Changed To Rating Under
Review From Negative
..Issuer: SESI, L.L.C.
....Outlook, Changed To Rating Under
Review From Stable
..Issuer: Diamondback Energy, Inc.
....Outlook, Changed To Rating Under
Review From Stable
..Issuer: Fieldwood Energy LLC
....Outlook, Changed To Rating Under
Review From Negative
..Issuer: Gulfport Energy Corporation
....Outlook, Changed To Rating Under
Review From Stable
..Issuer: Stone Energy Corporation
....Outlook, Changed To Rating Under
Review From Negative
..Issuer: Approach Resources Inc.
....Outlook, Changed To Rating Under
Review From Stable
..Issuer: Endeavor Energy Resources, L.P.
....Outlook, Changed To Rating Under
Review From Negative
..Issuer: Matador Resources Company
....Outlook, Changed To Rating Under
Review From Stable
..Issuer: Memorial Production Partners LP
....Outlook, Changed To Rating Under
Review From Stable
..Issuer: Memorial Resource Development Corp.
....Outlook, Changed To Rating Under
Review From Stable
..Issuer: GulfMark Offshore, Inc.
....Outlook, Changed To Rating Under
Review From Negative
..Issuer: HGIM CORP.
....Outlook, Changed To Rating Under
Review From Negative
..Issuer: Hornbeck Offshore Services, Inc.
....Outlook, Changed To Rating Under
Review From Negative
..Issuer: Pioneer Energy Services Corp.
....Outlook, Changed To Rating Under
Review From Negative
..Issuer: Jonah Energy LLC
....Outlook, Changed To Rating Under
Review From Stable
..Issuer: Northern Oil and Gas, Inc
....Outlook, Changed To Rating Under
Review From Stable
..Issuer: Oasis Petroleum Inc
....Outlook, Changed To Rating Under
Review From Stable
..Issuer: Vanguard Natural Resources, LLC
....Outlook, Changed To Rating Under
Review From Negative
..Issuer: Bonanza Creek Energy, Inc.
....Outlook, Changed To Rating Under
Review From Stable
..Issuer: EV Energy Partners, L.P.
....Outlook, Changed To Rating Under
Review From Negative
..Issuer: Resolute Energy Corporation
....Outlook, Changed To Rating Under
Review From Negative
..Issuer: Jones Energy Holdings, LLC
....Outlook, Changed To Rating Under
Review From Stable
..Issuer: Legacy Reserves LP
....Outlook, Changed To Rating Under
Review From Stable
..Issuer: Sanchez Energy Corporation
....Outlook, Changed To Rating Under
Review From Stable
..Issuer: Vine Oil & Gas, LP
....Outlook, Changed To Rating Under
Review From Stable
..Issuer: Cactus Wellhead LLC
....Outlook, Changed To Rating Under
Review From Negative
..Issuer: Light Tower Rentals, Inc.
....Outlook, Changed To Rating Under
Review From Negative
..Issuer: Prowler Acquisition Corp
....Outlook, Changed To Rating Under
Review From Negative
..Issuer: UTEX Industries, Inc.
....Outlook, Changed To Rating Under
Review From Negative
Unchanged:
..Issuer: Transocean Inc.
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-1
..Issuer: Chesapeake Energy Corporation
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-3
..Issuer: Compressco Partners, L.P.
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-3
..Issuer: Era Group Inc.
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-2
..Issuer: Bill Barrett Corp
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-2
..Issuer: Breitburn Energy Partners L.P.
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-3
..Issuer: Clayton Williams Energy, Inc.
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-3
..Issuer: Laredo Petroleum, Inc.
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-2
..Issuer: RSP Permian, Inc.
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-2
..Issuer: Talos Production LLC
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-4
..Issuer: W&T Offshore, Inc.
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-3
..Issuer: Forum Energy Technologies, Inc.
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-1
..Issuer: Chaparral Energy, Inc.
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-3
..Issuer: Parsley Energy LLC
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-3
..Issuer: PDC Energy
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-2
..Issuer: Weatherford International Ltd. (Bermuda)
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-2
.... Backed Commercial Paper, Unchanged
at NP
..Issuer: Carrizo Oil & Gas, Inc.
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-2
..Issuer: Rice Energy Inc.
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-2
..Issuer: Atwood Oceanics, Inc.
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-3
..Issuer: Bristow Group Inc.
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-2
..Issuer: CJ Holding Co.
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-3
..Issuer: Parker Drilling Company
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-2
..Issuer: Diamondback Energy, Inc.
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-2
..Issuer: Fieldwood Energy LLC
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-3
..Issuer: Gulfport Energy Corporation
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-2
..Issuer: Stone Energy Corporation
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-4
..Issuer: Approach Resources Inc.
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-3
..Issuer: Endeavor Energy Resources, L.P.
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-3
..Issuer: Matador Resources Company
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-3
..Issuer: Memorial Production Partners LP
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-2
..Issuer: Memorial Resource Development Corp.
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-2
..Issuer: GulfMark Offshore, Inc.
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-3
..Issuer: HGIM CORP.
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-4
..Issuer: Hornbeck Offshore Services, Inc.
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-2
..Issuer: Pioneer Energy Services Corp.
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-4
..Issuer: Jonah Energy LLC
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-3
..Issuer: Northern Oil and Gas, Inc
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-3
..Issuer: Oasis Petroleum Inc
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-2
..Issuer: Vanguard Natural Resources, LLC
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-4
..Issuer: Bonanza Creek Energy, Inc.
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-3
..Issuer: EV Energy Partners, L.P.
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-3
..Issuer: Resolute Energy Corporation
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-3
..Issuer: Jones Energy Holdings, LLC
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-2
..Issuer: Legacy Reserves LP
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-3
..Issuer: Sanchez Energy Corporation
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-2
..Issuer: Vine Oil & Gas, LP
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-3
..Issuer: Cactus Wellhead LLC
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-3
..Issuer: Prowler Acquisition Corp
.... Speculative Grade Liquidity Rating,
Unchanged at SGL-3
REGULATORY DISCLOSURES
For ratings issued on a program, series or category/class of debt,
this announcement provides certain regulatory disclosures in relation
to each rating of a subsequently issued bond or note of the same series
or category/class of debt or pursuant to a program for which the ratings
are derived exclusively from existing ratings in accordance with Moody's
rating practices. For ratings issued on a support provider,
this announcement provides certain regulatory disclosures in relation
to the credit rating action on the support provider and in relation to
each particular credit rating action for securities that derive their
credit ratings from the support provider's credit rating.
For provisional ratings, this announcement provides certain regulatory
disclosures in relation to the provisional rating assigned, and
in relation to a definitive rating that may be assigned subsequent to
the final issuance of the debt, in each case where the transaction
structure and terms have not changed prior to the assignment of the definitive
rating in a manner that would have affected the rating. For further
information please see the ratings tab on the issuer/entity page for the
respective issuer on www.moodys.com.
For any affected securities or rated entities receiving direct credit
support from the primary entity(ies) of this credit rating action,
and whose ratings may change as a result of this credit rating action,
the associated regulatory disclosures will be those of the guarantor entity.
Exceptions to this approach exist for the following disclosures,
if applicable to jurisdiction: Ancillary Services, Disclosure
to rated entity, Disclosure from rated entity.
The person who approved Approach Resources Inc., Bill Barrett
Corp, Bonanza Creek Energy, Inc., Breitburn Energy
Partners L.P., Carrizo Oil & Gas, Inc.,
Chaparral Energy, Inc., Chesapeake Energy Corporation,
Clayton Williams Energy, Inc., CrownRock, L.P.,
Diamondback Energy, Inc., Endeavor Energy Resources,
L.P., EV Energy Partners, L.P.,
Fieldwood Energy LLC, Gulfport Energy Corporation, Jonah Energy
LLC, Laredo Petroleum, Inc., Matador Resources
Company, Memorial Production Partners LP, Memorial Resource
Development Corp., Northern Oil and Gas, Inc,
Oasis Petroleum Inc, Parsley Energy LLC, PDC Energy,
Resolute Energy Corporation, Rice Energy Inc., RSP
Permian, Inc., Stone Energy Corporation, Talos
Production LLC, Templar Energy, LLC, Vanguard Natural
Resources, LLC, W&T Offshore, Inc.,
Atwood Oceanics, Inc., Bristow Group Inc.,
CJ Holding Co., Compressco Partners, L.P.,
Diamond Offshore Drilling, Inc., ENSCO International
Incorporated, Ensco plc, Era Group Inc., FMC
Technologies, Inc., Forum Energy Technologies,
Inc., GulfMark Offshore, Inc., HGIM CORP.,
Hornbeck Offshore Services, Inc., Nabors Industries
Inc., National Oilwell Varco, Inc., Noble
Corporation (Cayman Island), Noble Drilling Corporation, Noble
Holding International Limited, Oceaneering International,
Inc., Parker Drilling Company, PHI, Inc.,
Pioneer Energy Services Corp., Pride International,
Inc., Rowan Companies, Inc., Schlumberger
Holdings Corporation, SEACOR Holdings Inc., SESI,
L.L.C., Transocean Inc., Weatherford
International Ltd. (Bermuda), and Weatherford International,
LLC (Delaware) credit ratings is Steven Wood, MD - Corporate
Finance, Corporate Finance Group, Journalists Tel 212-553-0376,
Subscribers Tel 212-553-1653. The person who approved
Jones Energy Holdings, LLC, Legacy Reserves LP, Sanchez
Energy Corporation, Cactus Wellhead LLC, Light Tower Rentals
Inc., Prowler Acquisition Corp, UTEX Industries,
Inc. and Vine Oil & Gas, LP credit ratings is Alexandra
S. Parker, MD - Corporate Finance, Corporate
Finance Group, Journalists Tel 212-553-0376,
Subscribers Tel 212-553-1653.
The below contact information is provided for information purposes only.
Please see the ratings tab of the issuer page at www.moodys.com,
for each of the ratings covered, Moody's disclosures on the
lead analyst and the Moody's legal entity that has issued the ratings.
Regulatory disclosures contained in this press release apply to the credit
rating and, if applicable, the related rating outlook or rating
review.
Please see www.moodys.com for any updates on changes to
the lead rating analyst and to the Moody's legal entity that has issued
the rating.
Please see the ratings tab on the issuer/entity page on www.moodys.com
for additional regulatory disclosures for each credit rating.
Peter Speer
Senior Vice President
Corporate Finance Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Steven Wood
MD - Corporate Finance
Corporate Finance Group
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Moody's reviews energy companies in the US for downgrade
