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S&P lowers Callon Petroleum's rating to B-; outlook negative from SNL Energy Finance Daily S&P lowers Callon Petroleum's rating to B-; outlook negativeByline: Stephen Cedric Jumchai S&P Global Ratings on April 2 lowered Callon Petroleum Co.'s issuer credit rating to B- from B+ and its rating on unsecured notes to B from BB-. The outlook is negative. The rating agency notes that Callon is well hedged through 2020, which provides it with a measure of cash flow stability. However, Ratings expects price assumptions on unhedged production underpinning reserve-based lending facilities across the industry to decline given current strip pricing, potentially constraining liquidity. Ratings recently revised its oil and natural gas price assumptions and forecasts Brent crude to average $30 per barrel, West Texas Intermediate at $25/bbl and Henry Hub natural gas at $2/MMBtu for the remainder of the year. The negative outlook reflects the rating agency's view that oil and gas prices will remain challenged in the next few years, oil and gas companies will have limited access to capital markets and liquidity may be constrained owing to lower bank price decks. This S&P Global Market Intelligence news article contains information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings. |
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