S&P: EOG outlook negative

Standard & Poor's said it revised the outlook on EOG Resources Inc. to negative from stable and affirmed its A- corporate credit rating.

The action reflects expectation that key credit metrics may worsen as a result of EOG lowering its production forecasts and revising its net debt to capital limit to 30% to 35% from its previous threshold of 25%, as well as the weak outlook for natural gas prices, according to the agency.

"The negative outlook reflects our assessment that EOG is likely to further leverage its balance sheet over the next several years to support outspending of funds from operation, as the company aggressively pursues liquids production growth," S&P analyst Marc Bromberg said in a statement.

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