Evaluating Credit Risk of E&P

Time: Monday, March 23, 2020 - 9:15am to 10:15am
Level: Beginner/Intermediate

About

The combination of hydraulic fracturing and horizontal drilling that enabled the United States to significantly increase its production of oil and natural gas since 2010 known as the “Shale Revolution” now account for 36% of total U.S. crude oil production. Almost a decade on, this session will explore whether the Shale Revolution is still supporting US exploration & production (“E&P”) company financial health and the key indicators that credit analysts should look to for evaluating the credit trends. Further, the session will discuss the potential impacts of fracking bans proposed by major Democratic presidential candidates and fracking studies launched by states like Pennsylvania and what they might mean for production and credit strength of US E&P companies going forward. 1 hr CPE – Finance; 1 hr CE

Objectives

  • Gain an understating of the key indicators and financial ratios to evaluate exploration and production companies.