S&P: Outlook stable for four oil, gas companies

Standard & Poor's said that, following an industry review of oil and gas exploration and production companies, it revised the outlook to stable from positive on four speculative-grade companies: Clayton Williams Energy Inc. (B/B+ senior unsecured), Forest Oil Corp. (BB-/B+ senior unsecured), Venoco Inc. (B/B subordinated) and Whiting Petroleum Corp. (BB-/BB- subordinated). All ratings were affirmed.

The agency said the review was prompted by its recent revision of our oil and gas pricing assumptions in light of the rapid decline in hydrocarbon prices and S&P's expectation that lower prices will prevail for the near to medium term.

The outlook revisions reflect an expectation of worsening credit metrics at Forest Oil, the stalled momentum at Whiting Petroleum due to the lower price environment, weaker credit measures at Clayton Williams in light of revised oil and gas price assumptions and reduced confidence that Venoco's credit metrics will improve due to the falling commodity prices, S&P said.

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