Moody's reviews Apache

Moody's Investors Service said it placed Apache Corp.'s A3 senior unsecured ratings under review for downgrade following its announced $7 billion all cash asset acquisition from BP plc.

The agency said that, while substantial existing cash and equity will be used to fund the BP transaction, leverage is amplified by the fairly low proportion of production and producing reserves relative to the price paid for the BP assets.

Moody's also noted the corresponding substantial proportion of undrilled yet-to-be-funded proven undeveloped reserves and probable and possible acreage, the pending $3.9 billion acquisition of Mariner Energy and the June closing of its $1.050 billion acquisition of Devon Energy properties.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.