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Industry Study

Oil & Gas Study


Criteria For the Non-Investment Grade
World
July 2014
CONTACT INFORMATION
James Jung, CFA, FRM, CMA
Senior Vice President
Corporate Research & Analysis
+1 416 597 7577
jjung@dbrs.com
Eric Eng, MBA
Vice President
Corporate Research & Analysis
+1 416 597 7578
eeng@dbrs.com
Peter Schroeder
Managing Director
Corporate Research & Analysis
+1 416 597 7579
ps@dbrs.com
Andy Thi
Senior Financial Analyst
Corporate Research & Analysis
+1 416 597 7337
athi@dbrs.com
Eric Chun
Financial Analyst
Corporate Research & Analysis
+1 416 597 7341
echun@dbrs.com

Angie Wong
Junior Financial Analyst
Corporate Research & Analysis
Saadat Hussain
Junior Financial Analyst
Corporate Research & Analysis
Salina Miao
Junior Financial Analyst
Corporate Research & Analysis
Lin Dong
Junior Financial Analyst
Corporate Research & Analysis
Linda Zhang
Junior Financial Analyst
Corporate Research & Analysis
Vincent Chui
Junior Financial Analyst
Corporate Research & Analysis
DBRS is a full-service credit rating agency
established in 1976. Privately owned and operated
without affliation to any fnancial institution,
DBRS is respected for its independent, third-party
evaluations of corporate and government issues,
spanning North America, Europe and Asia.
DBRSs extensive coverage of securitizations
and structured fnance transactions solidifes our
standing as a leading provider of comprehensive,
in-depth credit analysis.
All DBRS ratings and research are available in
hard-copy format and electronically on Bloomberg
and at DBRS.com, our lead delivery tool for
organized, Web-based, up-to-the-minute
information. We remain committed to
continuously refning our expertise in the analysis
of credit quality and are dedicated to maintaining
objective and credible opinions within the global
fnancial marketplace.
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
3
Oil and Gas Study
Criteria For the Non-Investment Grade World
TABLE OF CONTENTS
Executive Summary 4
The Five Business Factors 4
Financial Risk Factors 5
Topic Two: The Natural Gas Focus 6
Natural Gas: The Global Perspective 6
Natural Gas: North American Focus 7
The Past: The Great Pricing Divergence 7
The Future: Natural Gas Environment Supports Higher Prices 9
Topic Three: Sensitivity Analysis for Oil Producers 10
Oil Could Pressure Weaker Credits 10
Characteristics of Players 11
2014 Ratings Outlook 12
Top Ten Credit Drivers 12
Overall Rankings 14
Overall Standing 15
Key Players 20
Key Credit Metrics 34
Income Statement Data in Q1 2014 39
Balance Sheet and Capital Structure in Q1 2014 44
Q1 2014 Cash Flows 49
Fiscal Year Ends 55
Aggregate Totals and Averages 59
Key Metrics 59
Key Ratios 59
Company List 60
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
4
Executive Summary
Criteria for the Non-Investment Grade World is a statistical study of 163 companies in the oil and
gas industry between 2008 and Q1 2014. In its review, DBRS has targeted the industry participants with
characteristics indicative of a non-investment grade rating, which are ratings below BBB (low). This is the
fnal study of a four part series that identifes the key characteristics used to defne the individual rating
categories. DBRS recently published three studies, which focused on the AAA/AA (Best of the Best,
September 2013), A (Straight As, December 2013) and BBB (Making the Grade, April 2014)
rating categories. In addition, this study updates discussion on the natural gas market, the oil pricing
sensitivity analysis, and the 2014 ratings outlook.
In determining any rating in the oil and gas sector, DBRS places emphasis on fve key criteria.
THE FIVE BUSINESS FACTORS
DBRS uses fve key business factors in determining credit quality for oil and gas exploration and production
(E&P) companies. These factors include: (1) Size and Business Mix; (2) Reserves of Core Operations; (3)
Cost Competitiveness; (4) Sensitivity to Price/Market Volatility; and (5) Capital Flexibility.
(1) Size and Business Mix Analysis:
Size is one of the most critical factors in determining credit quality in the oil and gas sector, especially
for non-investment grade companies. Larger entities are typically able to take a longer-term approach
to resource development, with lower borrowing costs and greater diversifcation. Smaller entities on the
other hand have considerably less fexibility to withstand market volatility, which increases their credit
risk. Daily production is key measurement to determine size for an exploration & production (E&P)
company.
Common characteristics for a Non-Investment Grade rating
Very small to small size (typically less than 100,000 barrels of oil equivalent per day (boe/d))
Minimal integration
Minimal product mix (liquids versus dry gas)
Limited geographical diversifcation
(2) Reserves of Core Operations Analysis:
The companys reserves quality is another important factor to determine credit quality. Non-investment
grade companies generally have a relatively limited inventory of reserves that can be developed in the
future. These reserves also typically have a lower quality relative to investment grade companies.
Common characteristics for a Non-Investment Grade rating
Weak reserve quality
Short reserve life
Weak ability to grow reserves and production
(3) Cost Competitiveness Analysis:
Non-investment grade companies generally have a relatively high cost base, with below-average operating
effciency. These companies are generally not vertically integrated, with only upstream operations.
Common characteristics for a Non-Investment Grade rating
High cost base
Low operating effciency
Weak infrastructure
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
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(4) Sensitivity to Price/Market Volatility Analysis:
Non-investment grade companies have a limited ability to withstand signifcant pricing volatility and are
highly susceptible to prolonged periods in low pricing environments.
Common characteristics for a Non-Investment Grade rating
Weak ability to withstand market volatility
(5) Capital Flexibility Analysis:
Non-investment grade players generally have a greater diffculty in responding to changing dynamics in
the industry. The players typically have weak capital fexibility, which will negatively affect the effciency
and effectiveness of capital deployment.
Common characteristics for a Non-Investment Grade rating
Weak capital fexibility.
FINANCIAL RISK FACTORS
DBRS ratings are also determined by the level of fnancial risk based on the following criteria. Key metrics
for the non-investment grade rating categories are shown below.
Key Credit Metrics:
Key Metric BB B
Debt-to-cash fow 2.0x to 3.0x > 3.0x
Debt-to-capital 45% to 55% > 55%
EBIT interest coverage 3.0x to 5.0x < 3.0x
Analysis:
Key metrics for a non-investment grade rated entity are typically much weaker versus investment grade
entities. Specifcally, non-investment grade entities generally have poor balance sheets, weaker cash fow
streams to service debt obligations, and much more limited access to capital to fund future capex needs.
Ranking:
DBRS notes that the vast majority of the companies reviewed were non-investment grade. Of the 163
companies reviewed, 110 companies had characteristics indicative of a non-investment grade rating.
In determining the ranking of the companies within this study, DBRS focused primarily on fnancial
statistics, sovereign infuence and to a lesser extent, business risk characteristics. The ranking within the
study is presented for illustrative purposes only and in most cases, do not represent DBRSs actual ratings.

Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
6
Topic Two: The Natural Gas Focus
NATURAL GAS: THE GLOBAL PERSPECTIVE
What should the price of natural gas be?
The price of natural gas is traditionally based on a six to one energy equivalent to oil. The ratio is based
on the substitution between oil for natural gas. For example, a barrel of oil will generate approximately
six million British thermal units (Btus) of energy, while one thousand cubic feet (Mcf) of gas would
produce approximately one million Btus of energy. On a direct substitution basis, this would indicate
that the price of natural gas should theoretically be over $16 based on an oil price of $100. However, in
reality, oil and gas are not direct substitutions and are subject to supply and demand imbalances that may
make this ratio invalid.
Todays pricing environment in Asia, Europe and North America
Natural gas pricing varies quite dramatically between Asia, Europe and North America.
Asia: Natural gas prices are linked to the price of Brent oil on an energy-equivalent basis with various
pricing adjustments to limit volatility. The Q1 2014 price in Japan averaged over $16/million British
thermal units (MMBtu). Key suppliers to the region are Australia, Qatar, Malaysia and Indonesia.
Europe: Similar to Asia, natural gas prices are closely linked to Brent oil. For example, the price for
natural gas from Russia is often linked to Brent oil and sold under long-term contracts. Currently, the
Russian Natural Gas border price in Germany trades just under $11/MMBtu. Key suppliers to the
region are the U.K. (North Sea), Norway, the Netherlands and Russia.
North America: Pricing is based on market supply and demand characteristics, which may vary quite
dramatically from an energy-equivalent basis. In Q1 2014, the Henry Hub (the largest natural gas hub
in North America) price averaged approximately $4.60/MMBtu. This low price, relative to Europe
and Asia, is attributable to oversupply conditions that have existed since 2008. This region is self-
suffcient and does not require foreign imports.
Price Comparison - Henry Hub vs. Japan vs. Russia
NYMEX Japan Import LNG Price
U
S
D
/
M
M
B
t
u
Natural Gas - Russian Natural Gas Border Price in Germany
Source: Bloomberg
$0
$2
$4
$6
$8
$10
$12
$14
$16
$18
$20
2006 2007 2008 2009 2010 2011 2012 2013 2014
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
7
NATURAL GAS: NORTH AMERICAN FOCUS
The North American natural gas pricing imbalance - good or bad?
The defnition of an imbalance is an ineffciency within the capital markets, thus, the net impact is negative.
The current pricing imbalance between North America and other regions has created many winners and
losers. The main benefciaries of low natural gas prices in North America are consumers and energy-
intensive industries such as oil sands players. Consumers beneft from lower utility rates and heating
costs, while the industrial sector is better positioned today to handle foreign competition. The key losers
during a weak natural gas pricing environment are the natural gas producers, which face tremendous
margin pressures and weak proftability. To correct the overall negative impact of the imbalance, North
America needs to have the ability to export an excess supply of natural gas to global markets.
Shifting natural gas trends has lead to greater volatility
Prior to 2008, the price of natural gas was closely linked to oil prices and natural gas production consisted
primarily of conventional drilling methods used to extract a depleting resource base. Using conventional
technology, natural gas supply was not keeping pace with rising consumption. The growth of consumption
was primarily attributable to changes in the electricity generation mix from dirty coal to cleaner
natural gas. Ultimately, this consumption shift led to concerns that North America would eventually
run out of natural gas, causing a spike in pricing. Furthermore, these concerns led to the development of
fracking technology, contributing to a massive oversupply of natural gas into the North America market.
As a result, considerable pricing volatility followed.
NYMEX AECO Differential
$
Source: Bloomberg
(1.5)
(1.0)
(0.5)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2008 2009 2010 2011 2012 2013 2014
THE PAST: THE GREAT PRICING DIVERGENCE
Prior to 2008, North American natural gas prices were closely linked to the price of crude oil (6:1
to 10:1), as both commodities benefted from tight supply-demand conditions. Post-2008, the great
divergence occurred, as natural gas supply dramatically increased with the unexpected development of
fracking technologies. This resulted in a signifcant drop in prices in North America that continues today.
However, despite the cold winter that recently passed (which helped eliminate some of the excess supply
conditions that existed) pricing has yet to fully recover. The section that follows outlines some of the
reasons contributing to this odd pricing dynamic.
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
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WTI-NYMEX Price Comparison
NYMEX WTI
U
S
D
/
b
b
l
U
S
D
/
m
m
c
f
Source: Bloomberg
0
20
40
60
80
100
120
140
160
0
2
4
6
8
10
12
14
16
18
1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014
WTI-NYMEX Ratio
Price Ratio Mean - 12.4 Median - 9.6
Source: Bloomberg
0
10
20
30
40
50
60
1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014
U.S. Natural Gas Storage (Bcf) Canadian Natural Gas Storage (Bcf)
Source: Canadian Gas Association Source: Canadian Gas Association
B
c
f
Record High
Oct. 2012
3,908 Bcf
B
c
f
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec.
2014
To Date
Mar. 2008
1,248 Bcf
6 Year High/Low Range
6 Year Average
2011
2012
2013
2014
0
100
200
300
400
500
600
700
800
900
Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec.
Record High
Oct. 2013
821 Bcf
Mar. 2012
256 Bcf
2014
To Date
6 Year High/Low Range
6 Year Average
2011
2012
2013
2014
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
9
THE FUTURE: PRICING UNCERTAINTY
Should 2015 see a winter similar to this past year, natural gas prices could be driven considerably higher
than currently forecasted. This is somewhat positive news for most E&Ps, especially for operators that
have greater exposure to North American natural gas. However, it is unlikely to result in prices greater
than $5/MMcf. Below are some supply-side and demand-side dynamics that will likely continue to affect
the natural gas pricing environment going forward.
Future supply-side dynamics
Rig count heavily infuenced by the pricing environment: DBRS believes that E&P producers will
begin to allocate more capital expenditures (capex) to natural gas production when prices surpass
approximately $5/MMcf. This could limit any upside in pricing beyond $5/MMcf.
Growing associated natural gas production from liquids-focused drilling: Signifcant production
from unconventional plays will continue to have an impact on the level of liquids and gas volumes
produced.
Continued improvement in drilling and completion effciency: Exploration and production (E&P)
producers have continued to increase operating effciencies for producing wells. As a result, production
has continued to rise despite a drop in rig count.
Future development of LNG: In May 2013, the frst natural gas project that will allow for the export
of natural gas from North America to global markets was approved. Additional approvals could
improve future supply-demand balances; however, lead times for these developments can exceed ten
years.
Future demand-side dynamics
The use of natural gas from the power sector: Coal-fred generation typically becomes more cost
effective when natural gas prices are over $4/MMcf. This could limit any signifcant growth in demand
from the power sector.
Weather conditions: As evidenced, warmer- or colder-than-average temperatures greatly infuence
the demand-supply balance, and will continue to have an impact on price volatility. For example
in 2014, the frigid temperatures in North America saw inventories decline substantially resulting
in a signifcant increase in prices. Should North America experience another cold winter, potential
shortages could exist, which would result in signifcant price volatility.
Recovery of the North American economy: The pace of economic improvement could have a positive
impact on demand for natural gas.
Future transportation fuel: Natural gas as a substitute to fuel for the transportation industry remains in
its infancy. However, new technologies and any pricing differentials could increasingly lead consumers
to switch over in the long term.
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
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Topic Three: Sensitivity Analysis for Oil Producers
OIL COULD PRESSURE WEAKER CREDITS
DBRS has found that, should oil prices drop below the $60 per barrel level, smaller E&P issuers and mid-
sized issuers with limited fnancial fexibility will likely face signifcant negative pressure on credit ratings.
DBRS has stress-tested the impact of various crude oil pricing points on issuers within its ratings universe,
analyzing the effects of oil prices on capex, dividends, ability to access capital market funding and asset
sales/purchases. Large E&P issuers could possibly see some minor pressure on metrics; however, they
would generally have suffcient fnancial fexibility and liquidity to withstand extended periods of lower
pricing, with little to no rating action expected.
Small E&P (<100 mboe/d)
Crude Pricing Capex Dividends Capital Market Access Asset Sales
100+ signifcant expansion increasing dividends strong access limited transactions
90 expansion plans modest dividend
increases
good access modest increase in
transactions
80 no additional expansion
plans
no change limited access assets sold at slight
premium
70 capex below budget dividend cuts very limited access assets sold at discount
<60 capex curtailment signifcant dividend cuts no access assets sold at signifcant
discount
Mid-sized E&P (100 to 500 mboe/d)
Crude Pricing Capex Dividends Capital Market Access Asset Sales/Purchases
100+ signifcant expansion modest dividend
increases
strong access limited transactions
90 expansion plans modest dividend
increases
strong access modest increase in
transactions
80 no additional expansion
plans
no change good access assets sold at slight
premium
70 no additional expansion
plans
no change good access assets sold/bought at
discount
<60 capex below budget dividend cuts limited access assets sold/bought at
signifcant discount
Large E&P (> 500 mboe/d)
Crude Pricing Capex Dividends Capital Market Access Asset Purchases
100+ signifcant expansion modest dividend
increases
strong access limited transactions
90 expansion plans no change strong access modest increase in
transactions
80 no additional expansion
plans
no change strong access assets sold at slight
premium
70 no additional expansion
plans
no change good access assets bought at
discount
<60 no additional expansion
plans
no change good access assets bought at
signifcant discount
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
11
For smaller to mid-sized E&P issuers, sub-$60 oil prices would likely cause a signifcant shift in capex and
dividend planning. Issuers slow to react to this lower pricing level could face considerable free cash fow
defcits that would need to be funded with existing liquidity. Typically, liquidity for these issuers consists
of: (1) existing on-balance sheet cash and credit facilities, (2) cuts to dividends and capex and, as a last
resort, (3) asset sales. For those mid-sized E&P issuers, liquidity support should be sustainable for at
least two years, with only a minimal impact on current ratings. However, for the smaller E&Ps, liquidity
support is typically shorter-term in nature and less able to withstand price shocks. As a result, smaller
E&P issuers face downside risks to current ratings, should oil prices drop below $60 for an extended
period of time.
Larger E&P issuers take a multiple-cycle approach to strategic planning. During sub-$60 pricing periods,
they are unlikely to change plans and may see this pricing as an opportunity to acquire assets at a
discount. Given their size and the strength of their fnancial profles, larger E&P issuers are unlikely to
experience pressure on ratings. Larger companies have adequate access to capital markets under most
conditions and maintain considerable balance sheet strength.
$70 to $80 pricing results in few changes to strategic plans
Large- and mid-sized E&P issuers are not likely to be affected at pricing between $70 and $80 per barrel,
given their size and fnancial/liquidity profles and general long-term outlook in relation to dividends
and capital spending. In contrast, at this price point, smaller E&P issuers would likely begin planning
decreases to capex levels and/or dividends.
Prices above $90 lead to expansionary spending
At prices above $90, all E&P issuers are expected to generate considerable growth in operating cash fow.
This cash fow will be used primarily to increase capex and dividends. Activity surrounding asset pur-
chases and sales is likely to decrease as sellers will demand premium pricing for their assets and mid-sized
players are unlikely to participate.
CHARACTERISTICS OF PLAYERS
Small-sized E&P
DBRS defnes small-sized E&P issuers as those with production levels of 100,000 barrels of oil equivalent
per day (boe/d) or less. These issuers are generally concentrated in one or few geographic regions and,
due to their small size, have limited economies of scale. Small E&P issuers generally have shorter-term
focus and limited balance sheet strength and fnancial fexibility, making them highly susceptible to price
volatility and economic fuctuations. These characteristics limit their access to the capital markets, thus
constraining their overall liquidity. As a result, many smaller E&P issuers credit quality is considered to
be below investment grade, with a greater probability of rating action during economic downturn.
Mid-sized E&P
Mid-sized E&P issuers are those with production levels between 100,000 boe/d and 500,000 boe/d,
as defned by DBRS. Issuers of this size generally beneft from greater geographic diversifcation and
economies of scale; however, operations are less diversifed than those of larger E&P issuers. Issuers of
this scale are more likely to withstand a short-term (i.e., one cycle) economic downturn, as they have
modest liquidity and greater fnancial fexibility, as compared to smaller E&P issuers.
Large-sized E&P
Large-sized E&P issuers are generally more resilient to pricing shocks, due to stronger fnancial profles
and access to liquidity. Operational and fnancial planning consider a longer time horizon (i.e., multiple
cycles), resulting in minimal cuts to capex or dividends during cycle downturns. These issuers also beneft
from greater global diversifcation, as well as economies of scale due to their high production levels
(greater than 500,000 boe/d). As a result of their size and fnancial strength, larger E&P issuers are better
positioned to withstand market shocks and are less likely to be subject to rating volatility during market
swings. Larger E&P issuers generally have a higher ceiling for credit ratings.
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
12
2014 Ratings Outlook
DBRS expects generally stable credit profles in 2014, particularly for companies with production profles
heavily weighted toward crude oil and/or liquids-rich natural gas (including natural gas at an oil-linked
index price). Most large E&P companies are expected to live within their means by ensuring capital
expenditures (capex) spending and dividends are fundable by operating cash fow, whereas smaller E&P
companies are expected to generate cash fow defcits due to a high level of capex in order to ramp up
production. Rating volatility is not anticipated in the near term.
2014 global oil pricing
Oil prices are expected to remain well above $80 per barrel as the global economy begins to stabilize. It
is expected that many companies will continue to focus growth spending on oil and oil-based natural gas
in order to generate higher margins.
2014 North American natural gas pricing
Pricing for natural gas in North America is expected to remain relatively fat. Some previous excess supply
conditions have been alleviated; however three key challenges may limit upside potential for natural gas
prices: (1) signifcant shut-in capacity, (2) coal to natural gas switching, which is uneconomic above $4
per MMcf, and (3) potential for increased drilling activity should prices go above $5 per MMcf.
TOP TEN CREDIT DRIVERS
In this study, DBRS collected historical data from 163 oil and gas companies between 2008 and Q1 2014.
Following a review of the data and industry trends, DBRS drew the following ten key conclusions:
(1) Asia drives demand for the industry.
Demand from Asia is the main driving force behind strong commodity prices and production growth.
Over the past decade, oil consumption growth in Asia has signifcantly outpaced production growth in
the region, creating a supply-demand imbalance and placing upward pressure on global prices.
(2) Key credit ratios remain strong.
Following the sector turmoil of 2008, many issuers maintained conservative fnancial profles. All key
credit metrics remained at or near cycle highs in Q1 2014, benefting from high oil prices.
(3) Capital expenditure is focused on oil and liquids development.
Capital expenditure has grown signifcantly since hitting a low point in 2009, when many companies
scaled back spending to provide fexibility during the fnancial crisis. In North America, the majority
of capital spending is allocated to higher-margin oil and liquids developments, shifting away from low
margin natural gas drilling.
(4) Revolutionary technology advances fuel growth.
Recent technology advances specifcally, the development of horizontal drilling and fractionation
technologies have proven incredibly successful, resulting in signifcant growth in shale oil and gas
production. This new technology, coupled with lean, factory-like practices used in feld development, has
shortened drilling and completion times and raised production levels.
(5) Rising oil sands investment in Canada and Bakken Shale/Eagleford development in the United
States
Excluding reserves owned by governments, Canadas oil sands account for approximately 52% of global
accessible oil reserves. In the United States, the Bakken Shale/Eagleford will likely see considerable
investment for the foreseeable future. Investment in emerging markets, such as Venezuela and Iran,
remains minimal, due to limitations on foreign ownership and the risk of political instability. Similar
limitations can also be found in well-established growth countries such as Saudi Arabia and Russia.
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
13
(6) A growing shortage of highly skilled labour is an ongoing challenge.
The skilled labour pool remains limited when compared with the numerous future projects under
development. As a result, the tight labour market could lead to a repeat of the substantial cost overruns
experienced in 20062008.
(7) Pipeline and infrastructure constraints contribute to signifcant pricing differential.
The North American oil price differential has remained volatile, with prices of Canadian light and heavy
oil and North Dakota Bakken crude oil trading at discounts. Currently, there is a glut of oil supply at
one of the key hubs at land-locked Cushing, Oklahoma, which has negatively affected proftability of
non-integrated E&Ps. This glut is directly attributable to unanticipated oil and gas production from the
Bakken Shale and Canadian oil sands, which the existing pipeline infrastructure has not been able to
support.
(8) Integrated operations provide natural hedge.
Companies with integrated operations have been able to achieve superior returns in downstream businesses
by capturing the price differential. In contrast, the price differential did not perform well in the previous
commodity cycle. In general, companies with integrated operations have stronger business risk profles.
(9) Regulatory issues continue to have signifcant implications for future production growth.
The oil and gas sector, particularly oil sands, continues to come under increased scrutiny, as environmental
issues pertaining to air, water and land have gained worldwide attention. In addition, obtaining regulatory
approval for new pipelines has remained challenging, as evidenced by the Keystone XL pipelines regulatory
approval permitting delays. A lack of takeaway capacity in the medium term could signifcantly affect
future production growth.
(10) North America makes a big bet on liquefed natural gas (LNG).
LNG projects require signifcant capital investments over the next decade in North America. Many large
E&P companies will contribute signifcant capital to grow LNG. Lead times are considerable and the
ability to bring projects online remains highly challenging.

Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
14
Overall Rankings
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
15
Overall Standing
Rank Company Name Rating EBIT
EBIT Gross
Interest
Coverage
Adjusted
Gross Debt
in Capital
Structure
Adjusted Total
Debt-to-Cash
Flow
1 Exxon Mobil Corporation -
2 Imperial Oil Limited
AA
(high)
3 Chevron Corporation AA
4 Royal Dutch Shell plc -
5 Total S.A. and Subsidiaries -
6 Statoil ASA -
7 CNOOC Limited
1
-
8 PetroChina Company Ltd. -
9 Sinopec Corp. -
10 BP p.l.c. A
11 Eni S.p.A. -
12 Occidental Petroleum Corporation A
13 ConocoPhillips A
14 Inpex Corporation -
15 Suncor Energy Inc. A (low)
16 Apache Corporation -
17 Husky Energy Inc. A (low)
18 Marathon Oil Corporation -
19 OMV Aktiengesellschaft -
20 Cenovus Energy Inc. A (low)
21 EOG Resources, Inc. -
22 Canadian Natural Resources Limited
BBB
(high)
23 BG Group plc -
24 Devon Energy Corporation
BBB
(high)
25 Hess Corporation -
26 Talisman Energy Inc.
BBB
(high)
27 OAO Gazprom
1
-
28 OAO Lukoil -
29 Rosneft -
30 Petrobras -
31 Murphy Oil Corporation BBB
32 Canadian Oil Sands Limited BBB
33 Anadarko Petroleum Corporation BBB
34 Noble Energy Inc. -
35 Encana Corporation BBB
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
16
Overall Standing
Rank Company Name Rating EBIT
EBIT Gross
Interest
Coverage
Adjusted
Gross Debt
in Capital
Structure
Adjusted Total
Debt-to-Cash
Flow
36 PGNiG S.A. -
37 Energen Corporation -
38 Repsol, S.A. -
39 Ecopetrol S.A. -
40 Southwestern Energy Co. -
41 Continental Resources, Inc. -
42 Pioneer Natural Resources Company -
43 Newfeld Exploration Co. -
44 Crescent Point Energy Corporation -
45 MOL Group -
46 Concho Resources Inc. -
47 Pacifc Rubiales Energy Corp. -
48 Cimarex Energy Co. -
49 Denbury Resources Inc. -
50 The Delek Group Ltd. -
51 Chesapeake Energy Corporation -
52 JSOC Bashneft -
53 Whiting Petroleum Corporation -
54 ARC Resources Ltd. -
55 Vermilion Energy Inc. BB (low)
56 Cabot Oil & Gas Corp. -
57 Unit Corporation -
58 QEP Resources Inc. -
59 Baytex Energy Corp. -
60 Penn West Petroleum Ltd. -
61 SM Energy Company -
62 Range Resources Corporation -
63 Bonavista Energy Corporation -
64 Galp Energia SGPS, SA
1
-
65 MEG Energy Corporation -
66 Tourmaline Oil Corp. -
67 Enerplus Corporation -
68 Energy XXI (Bermuda) Limited -
69 Oasis Petroleum Inc. -
70 Pengrowth Energy Corporation -
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
17
Overall Standing
Rank Company Name Rating EBIT
EBIT Gross
Interest
Coverage
Adjusted
Gross Debt
in Capital
Structure
Adjusted Total
Debt-to-Cash
Flow
71 SandRidge Energy, Inc. -
72 LightStream Resources Ltd. -
73 Stone Energy Corp. -
74 Rosetta Resources Inc. -
75
PEYTO Exploration & Development
Corp.
-
76 Legacy Oil & Gas Inc. -
77 Northern Oil & Gas Inc. -
78 Gran Tierra Energy Inc. -
79 Bankers Petroleum Ltd. -
80 Whitecap Resources Inc. -
81 TransGlobe Energy Corporation -
82 Parex Resources Inc. -
83 Trilogy Energy Corp. B
84 Gulfport Energy Corporation -
85 Advantage Oil & Gas Ltd. -
86 Crew Energy Inc. B
87 Grupa LOTOS S.A. -
88 Birchcliff Energy Ltd. -
89 Bonanza Creek Energy, Inc. -
90 Long Run Exploration Ltd. -
91 EPL Oil & Gas, Inc. -
92 Kosmos Energy Ltd. -
93 PDC Energy, Inc. -
94 Ultra Petroleum Corp. -
95 Kodiak Oil & Gas Corp. -
96 PT Medco Energi Internasional Tbk -
97 Laredo Petroleum Holdings, Inc. -
98 Carrizo Oil & Gas, Inc. -
99 Athabasca Oil Corporation B
100 Resolute Energy Corporation -
- W&T Offshore -
- YPF S.A. -
- Pakistan Petroleum Limited -
- Raging River Exploration Inc. -
- Freehold Royalties Ltd. -
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
18
Overall Standing
Rank Company Name Rating EBIT
EBIT Gross
Interest
Coverage
Adjusted
Gross Debt
in Capital
Structure
Adjusted Total
Debt-to-Cash
Flow
- Mari Petroleum Company Limited -
- BlackPearl Resources Inc. -
- Bonterra Energy Corp. -
-
Oil & Gas Development Company
Limited
-
- Surge Energy Inc. -
- Bellatrix Exploration Ltd. -
- Longview Oil Corp. -
- Twin Butte Energy LTD. -
- Vaalco Energy, Inc. -
- Approach Resources Inc. -
- Painted Pony Petroleum Ltd. -
- Cequence Energy Ltd. -
- Chinook Energy Inc. -
- Renegade Petroleum Ltd. -
- LINN Energy, LLC -
- Exco Resources, Inc. -
- Bill Barrett Corporation -
- Halcn Resources Corporation -
- Penn Virginia Corporation -
- NuVista Energy Ltd. -
- Comstock Resources Inc. -
- WPX Energy, Inc. -
- RMP Energy Inc. -
- Warren Resources, Inc. -
- Eagle Energy Trust -
- Zargon Oil & Gas Ltd. -
- Rock Energy Inc. -
- Gastar Exploration Ltd. -
- Parallel Energy Trust -
- Delphi Energy Corp. -
- Arcan Resources Ltd. -
- Forest Oil Corporation -
- Atlantic Petroleum P/F -
- Connacher Oil and Gas Limited -
- TORC Oil & Gas Ltd. -
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
19
Overall Standing
Rank Company Name Rating EBIT
EBIT Gross
Interest
Coverage
Adjusted
Gross Debt
in Capital
Structure
Adjusted Total
Debt-to-Cash
Flow
- Hellenic Petroleum S.A. -
- Pinecrest Energy Inc. -
- Goodrich Petroleum Corporation -
- Questerre Energy Corporation -
- Pan Orient Energy Corp. -
- Paramount Resources Ltd. -
- ShaMaran Petroleum Corp. -
- Africa Oil Corp. -
- Strategic Oil & Gas Ltd. -
- Perpetual Energy Inc. -
- Noreco SA -
-
Magnum Hunter Resources
Corporation
-
- Canacol Energy Ltd. -
- Isramco, Inc. -
- Argent Energy Trust -
- Quicksilver Resources Inc. -
- Pine Cliff Energy Ltd. -
- Sunshine OilSands Ltd. -
- Antrim Energy Inc. -
- Southern Pacifc Resources Corp. CCC
- HKN, Inc. -
- Anderson Energy Ltd. -
- Niko Resources Ltd. -
1. 2014 fgures refect YE December 31, 2013
Ranking
($ millions where applicable) EBIT
EBIT Gross
Interest
Coverage
Adjusted Gross
Debt in Capital
Structure
Adjusted
Total Debt-to-
Cash Flow
Strong >600 >9 <25% <1.5

Average >100 to <600 >3 to <9 >25% to <40% >1.5 to <3
Below
Average
<100 <3 >40% >3
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
20
KEY PLAYERS
Rank Rating Description
1 -
Exxon Mobil Corporation (the Company) is a multinational company
engaged in crude oil and natural gas production. Headquartered in Irving,
Texas, the company is involved in exploration, manufacture of petroleum
products, transportation, as well as the manufacture and sales of commodity
petrochemicals.
2 AA (high)
Imperial Oil Limited, 69.6% owned by ExxonMobil, is a refner and marketer
of petroleum products and a major producer of petrochemical products in
Canada.
3 AA
Chevron Corporation has a portfolio of upstream assets and global
downstream operations, consisting of refning and marketing operations
alongside an international petrochemicals business.
4 -
Royal Dutch Shell plc (The Company) is a diversifed and integrated oil and
gas company, based in The Hague, Netherlands. The Company engages in the
exploration and production of crude oil and natural gas, conversion of crude
oil to a wide range of refned products, as well as the production and sale of
petrochemicals for industrial use.
5 -
Total S.A. and Subsidiaries is an integrated non-government-owned
petroleum company. It has global upstream activities, downstream operations
and a chemicals business.
6 -
Statoil ASA (the Company) engages in the exploration and production of
crude oil and natural gas, as well as transportation, refning, and marketing of
petroleum and petroleum-derived products in Norway and internationally. The
Company is also involved in the retail sale of stationary energy, and building
and operating offshore wind farms in the U.K.
7 -
CNOOC Limited (CNOOC) is a Chinese producer of offshore crude oil and
natural gas and an independent oil and gas exploration and production
company. CNOOC mainly engages in exploration, development, production and
sales of oil and natural gas.
8 -
PetroChina Company Ltd. (the Company) is a Chinese oil and gas company
and is the listed arm of state-owned China National Petroleum Corporation
(CNPC), headquartered in Beijing. The Company is mainly engaged in the
production and sale of oil and gas related products.
9 -
Sinopec Corp. is an integrated energy and chemical company with upstream,
midstream and downstream operations. Its principal business includes:
exploring, developing, producing and trading of crude oil and natural gas;
producing, storing, transporting and distributing and marketing of petroleum
products, petrochemical products, synthetic fber, fertilizer and other chemical
products.
10 A
BP p.l.c. (BP) is a multinational company with headquarters in London,
England. BP is vertically integrated and engages in all areas of the oil and gas
industry, including exploration and production, refning, distribution, power
generation, etc.
11 -
Eni S.p.A., based in Italy, is an integrated energy company involved in the
exploration, production, transportation, refning and sale of oil and natural gas
with operations worldwide. It also produces and sells electricity, petrochemical
and petroleum products, hydrocarbons and engages in offshore and onshore
hydrocarbon felds.
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
21
Rank Rating Description
12 A
Occidental Petroleum Corporation is a U.S.-concentrated oil and gas
producer. It is also involved in manufacturing operations, midstream marketing
and commodities trading.
13 A
ConocoPhillips, headquartered in Houston, Texas, is an independent
exploration and production company. Its principal operating regions include the
U.S., Europe and Canada.
14 -
Inpex Corporation (Inpex) is a Japanese company headquartered in
Akasaka district, Tokyo. Inpexs main business includes: research, exploration,
development, production and sales of oil, natural gas and other mineral
resources, other related businesses and investment and lending to the
companies engaged in these activities.
15 A (low)
Suncor Energy Inc. is an integrated oil and gas company. Its upstream
operations are mainly oil sands based in North America, with the balance in
the North Sea and North Africa. Its downstream operations include refneries, a
lubricants plant and a national network of retail stations.
16 -
Apache Corporation is a Texas-based independent oil and gas company with
exploration and production interests in the Gulf of Mexico, Gulf Coast Onshore
in the United States, Western Canada and the United Kingdom.
17 A (low)
Husky Energy Inc.s upstream and midstream operations, primarily located
in Canada, include infrastructure and commodity marketing. Its downstream
operations include upgrading, refning and marketing.
18 -
Marathon Oil Corporation (the Company) is an energy company with
worldwide operations in exploration and production of liquid hydrocarbons and
natural gas, oil sands mining and the production of integrated gas products.
Headquartered in Houston, Texas, the Company was formerly known as USX
Corp. prior to July 2001.
19 -
OMV Aktiengesellschaft is active in two core countries, Romania and Austria,
in terms of exploration and production and holds a balanced international
portfolio.
20 A (low)
Cenovus Energy Inc. is an integrated oil company with enhanced oil recovery
and oil sands properties in Western Canada, along with interests in two
refneries in the United States through a joint venture.
21 -
EOG Resources, Inc. and its subsidiaries engage in crude oil and natural gas
exploration, development, production and marketing with operations located
primarily in the United States, Canada, U.K., China, Trinidad and Tobago and
Argentina. It is headquartered in Houston, Texas.
22 BBB (high)
Canadian Natural Resources Limited (CNRL) is an oil and gas exploration,
development and production company located in Calgary, Alberta, with
operations focused in Canada and smaller interests internationally.
23 -
BG Group plc (the Company) is an international company engaged in the
exploration and production of natural gas products.
24 BBB (high)
Devon Energy Corporation has a portfolio of reserves in North America. It is
a producer in the Canadian oil sands and the Texas Barnett Shale formation.
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
22
Rank Rating Description
25 -
Hess Corporation is a global energy company engaged in the exploration and
production of crude oil and natural gas, as well as in refning and marketing
refned petroleum products, natural gas and electricity.
26 BBB (high)
Talisman Energy Inc. is an internationally diversifed oil and gas exploration
and production company, with production located in North America, the North
Sea, Southeast Asia and other international areas.
27 -
OAO Gazprom is a global energy company headquartered in Russia
Federation. Its major business lines are geological exploration, production,
transportation, storage, processing and sales of gas, gas condensate and oil,
sales of gas as a vehicle fuel as well as generation and marketing of heat and
electric power.
28 -
OAO Lukoil is an international vertically-integrated oil & gas company,
accounting for 2.1% of global output of crude oil.
29 -
Rosneft (the Company) is a publicly traded oil and gas company based in
Russia. The Company is primarily engaged in exploration and production of
hydrocarbons, production of petroleum products and petrochemicals, and
marketing of outputs.
30 -
Petrobras (the Company) is a semi-public Brazilian multinational energy
corporation headquartered in Rio de Janeiro, Brazil and was founded in 1953.
The Company owns oil refneries and oil tankers and is engaged in development
of advanced technology from deep-water and ultra-deep water oil production.
31 BBB
Murphy Oil Corporation is engaged mainly in worldwide offshore oil and
gas exploration and production. It also owns a U.K. refnery and marketing
operations in both the U.K. and the United States.
32 BBB
Canadian Oil Sands Limited has a working interest in Syncrude Canada
Limited, which operates an oil sands mine, as well as bitumen extraction and
upgrading facilities in Alberta.
33 BBB
Anadarko Petroleum Corporation (Anadarko) is a large, diversifed oil
and gas producer. The majority of Anadarkos assets are located in the U.S.,
representing about 90% of total proved reserves.
34 -
Noble Energy Inc. is an energy company with core operations onshore in
the United States, in the deepwater Gulf of Mexico, offshore in the eastern
Mediterranean, and offshore in West Africa.
35 BBB
Encana Corporation is a North American energy producer focused on its
portfolio of natural gas, oil and natural gas liquids.
36 -
PGNiG S.A. is a Polish oil and gas exploration and production company
engaged in the trade, distribution, oil and gas exploration and production as
well as gas storage and processing in Poland.
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
23
Rank Rating Description
37 -
Energen Corporation (the Company) is an independent producer of domestic
oil, natural gas and natural gas liquids, and is headquartered in Birmingham,
Alabama. More than 90% of the Companys proved reserves are located in
the Permian basin in West Texas and in the San Juan basin in New Mexico and
Colorado.
38 -
Repsol S.A. is a Spanish multinational oil and gas company based in Madrid,
Spain. It operates in all areas of the oil and gas industry, including exploration
and production, refning, distribution and marketing, petrochemicals, power
generation and trading.
39 -
Ecopetrol S.A. is a Colombian energy company that focuses on oil and gas
exploration, production, transportation and marketing.
40 -
Southwestern Energy Company is an independent energy company
primarily engaged in natural gas and crude oil exploration, development and
production within North America. Currently, its operations are principally
focused on the development of unconventional oil and natural gas.
41 -
Continental Resources, Inc. is a petroleum liquids producer based in
Oklahoma City. It is a leaseholder in the Bakken Play of North Dakota and
Montana, and also has a presence in the Anadarko Woodford Play of Oklahoma
and the Red River Units Play of North Dakota, South Dakota and Montana.
42 -
Pioneer Natural Resources Company (the Company) is an independent
company involved in the exploration and production of oil and gas, and
natural gas liquids in the United States and South Africa. The Company is
headquartered in Irving, Texas.
43 -
Newfeld Exploration Company is an independent crude oil and natural gas
exploration and production company headquartered in The Woodlands, Texas.
Its operations include the Mid-Continent, the Rocky Mountains, onshore Texas
and the Gulf of Mexico.
44 -
Crescent Point Energy Corporation engages in acquiring, exploiting,
developing and holding interests in light and medium oil and gas properties
mainly in Saskatchewan and Alberta.
45 -
MOL Group (the Company) is an international, integrated oil and gas company
from Hungary. In addition to the Companys refnery and commercial position
in the CEE region, increasing focus is now being given to its exploration and
production assets.
46 -
Concho Resources Inc. (the Company) is an independent oil and natural gas
company based in Midland, Texas. The Company is engaged in the acquisition,
development and exploration of oil and natural gas properties, and has
operations primarily in the Permian Basin of Southeast New Mexico and West
Texas.
47 -
Pacifc Rubiales Energy Corp. (the Company) is a conventional oil and gas
company that engages in the exploration, development and production of oil
and natural gas in Colombia, Peru and Guatemala. It also operates oil pipelines
in Colombia. The Company is headquartered in Toronto.
48 -
Cimarex Energy Co. is a Denver-based independent oil and gas exploration
and production company with principal operations in the Mid-Continent and
Permian Basin areas of the U.S.
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
24
Rank Rating Description
49 -
Denbury Resources Inc. (the Company) is an independent oil and gas
company headquartered in Dallas, Texas. The Company is a large oil and
natural gas producer in both Mississippi and Montana and holds an operating
acreage in the Rocky Mountain and Gulf Coast regions.
50 -
The Delek Group Ltd., an integrated energy company in Israel, is engaged in
natural gas exploration and production activities.
51 -
Chesapeake Energy Corporation, based in Oklahoma, engages in the
acquisition, exploration, development and production of natural gas and oil
properties in the United States.
52 -
JSOC Bashneft (Bashneft) is a vertically integrated oil company based on the
largest fuel and energy producers of the Republic of Bashkortostan. Bashneft
sells its products in Russia and exports them to Eastern and Western Europe
and Kazakhstan.
53 -
Whiting Petroleum Corporation (the Company) is an independent
exploration and production company that acquires, explores, develops, and
produces crude oil, natural gas liquids, and natural gas in the United States.
The Company is headquartered in Denver, Colorado.
54 -
ARC Resources Limited is a Canadian conventional oil and gas company.
It currently operates in Western Canada, holding interests in petroleum and
natural gas properties and assets.
55 BB (low)
Vermilion Energy Inc. is engaged in oil and gas exploration and production.
Its operations are internationally diversifed, with production located in Canada,
France, Australia and the Netherlands.
56 -
Cabot Oil & Gas Corporation (the Company) is an independent oil and gas
company headquartered in Houston, Texas. The Company is engaged in the
development, exploitation and exploration of oil and gas properties exclusively
in the continental United States.
57 -
Unit Corporation is a diversifed energy company engaged through its
subsidiaries in the exploration for and production of oil and natural gas, the
acquisition of producing oil and natural gas properties, the contract drilling of
onshore oil and natural gas wells, and the gathering and processing of natural
gas.
58 -
QEP Resources, Inc. engages in the domestic oil and natural gas exploration
and production industry, with operations focused in the Rocky Mountain and
Midcontinent regions of the U.S. Its activities include drilling, completing and
equipping oil and natural gas wells for itself and its partners.
59 -
Baytex Energy Corporation (the Company) is a conventional Canadian oil
and gas company operating mainly in the Western Canadian Sedimentary
Basin. The Company has a presence in the United States, offering heavy oil,
light oil and natural gas liquids.
60 -
Penn West Petroleum Ltd. (the Company) is a petroleum and natural gas
exploration and production company with reserves located in Western Canada
and the United States. The Company was formerly known as Penn West Energy
Trust.
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
25
Rank Rating Description
61 -
SM Energy Company is an independent energy company engaged in the
acquisition, exploration, development and production of crude oil, natural gas
and natural gas liquids in onshore North America.
62 -
Range Resources Corporation (Range) is an independent oil and gas
exploration and production company based in Fort Worth, Texas. Range
produces shale gas from the Devonian-aged Marcellus Shale in Pennsylvania.
63 -
Bonavista Energy Corporation is a conventional oil and gas company with
properties located in Alberta, British Columbia and Saskatchewan.
64 -
Galp Energia SGPS, SA (the Company) is Portugals oil and natural gas
integrated operator. The Company focuses on exploration and production of oil
and natural gas to refning and marketing oil products, natural gas marketing
and sales and power generation.
65 -
MEG Energy Corporation (the Company) is a Canadian oil sands company
focused on sustainable development and production in Albertas Athabasca
region. The Company owns a 50% interest in a dual pipeline system with
Devon Energy Corporation.
66 -
Tourmaline Oil Corporation (the Company) is engaged in the acquisition,
exploration, development, and production of crude oil and natural gas
properties in the Western Canadian Sedimentary Basin. The Company is based
in Calgary, Canada.
67 -
Enerplus Corporation (the Company) is engaged in the development and
exploration of crude oil and natural gas in Canada and the United States. The
Company is headquartered in Calgary, Alberta.
68 -
Energy XXI (Bermuda) Limited is an oil-focused company with assets in
South Louisiana and on the Gulf of Mexico Shelf. It operates fve oilfelds on the
Gulf of Mexico Shelf.
69 -
Oasis Petroleum Inc. (the Company) is an independent exploration
and production company focused on the acquisition and development of
unconventional oil and natural gas resources. The Company has its operations
in the Bakken Shale, located in Montana and North Dakota.
70 -
Pengrowth Energy Corporation (the Company) is an oil and gas producer
headquartered in Calgary, Alberta. The Company explores for crude oil, natural
gas and liquids in Alberta, British Columbia, Saskatchewan and Nova Scotia.
71 -
SandRidge Energy Inc. (SandRidge) focuses on drilling conventional oil
wells in shallow carbonate reservoirs. Based in Oklahoma City, SandRidge is a
developer of the Mississippian Oil Play, with assets in the Permian Basin and the
Gulf of Mexico.
72 -
LightStream Resources Ltd. is a light oil-focused exploration and production
company. Principal operating areas include southeastern Saskatchewan,
targeting the Bakken formation and conventional Mississippian reservoirs,
central Alberta, focusing on the Cardium formation, and north-central Alberta,
engaging in exploring for light oil resource plays.
73 -
Stone Energy Corporation is an independent oil and natural gas exploration
and production company headquartered in Lafayette, Louisiana, with additional
offces in New Orleans, Louisiana, Houston, Texas and Morgantown, West
Virginia.
74 -
Rosetta Resources Inc. is an independent oil and gas company based in
Houston, and is engaged in the exploration, development and exploitation of
onshore energy resources in the U.S.
75 -
Peyto Exploration & Development Corp. (the Company) is engaged in the
exploration and development of gas properties. The Company has operations
located halfway between the Northwest Territories and the U.S.
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
26
Rank Rating Description
76 -
Legacy Oil & Gas Inc. (the Company) is an intermediate oil and natural
gas company based in Calgary, Alberta. The Companys assets are focused in
southeast Saskatchewan and southwest Alberta.
77 -
Northern Oil and Gas Inc. is an oil and gas exploration and production
company, and it is a Williston Basin Bakken and Three Forks pure play in
western North Dakota and eastern Montana.
78 -
Gran Tierra Energy Inc. (Gran Tierra or the Company) is an international
oil and gas exploration and production company headquartered in Calgary,
Alberta. The Company currently holds interests in producing and has
prospective properties in Colombia, Argentina, Peru and Brazil.
79 -
Bankers Petroleum Ltd. (the Company) is a Canadian-based oil and gas
exploration and production company focused on developing oil and gas
reserves in Albania. The Company operates and has the rights to develop the
Patos-Marinza heavy oilfeld and has a 100% interest in the Kuova oilfeld.
80 -
Whitecap Resources Inc. (the Company) is engaged in the acquisition,
development, and production of crude oil and natural gas in western Canada.
The Company is based in Calgary, Canada.
81 -
TransGlobe Energy Corporation (TransGlobe or the Company) is an
international exploration and production company based in Calgary, with oil
interests in Egypt and Yemen.
82 -
Parex Resources Inc. (Parex) is an oil and gas exploration company with
a portfolio of high impact prospects in the prolifc Llanos Basin and Middle
Magdalena Basin of Colombia and onshore Trinidad and Tobago. Headquartered
in Calgary, Alberta, Parex holds interests in 17 onshore exploration blocks.
83 B
Trilogy Energy Corporation is a Canadian energy corporation that owns and
operates many properties to exploit gas reservoirs.
84 -
Gulfport Energy Corporation (the Company) is an oil and gas exploration
and production company headquartered in Oklahoma City. The Companys
principal producing properties are located along the Louisiana Gulf Coast and in
the Permian Basin in West Texas.
85 -
Advantage Oil & Gas Ltd. (the Company) is a Canadian oil and gas company
based in Calgary, Alberta. The Company owns and operates properties located
in Alberta, British Columbia and Saskatchewan.
86 B
Crew Energy Inc. (the Company) is an oil and natural gas producer based
in Calgary, Alberta. Its activities are concentrated in Alberta, northeast British
Columbia and Saskatchewan. The Companys focus is on the development and
expansion of its core natural gas and light oil producing areas and exploration
of its large, undeveloped land base.
87 -
Grupa LOTOS S.A. (the Company) is an oil company engaged in the business
of production and processing of crude oil, as well as wholesale and retail sale
of high quality petroleum products. The Company is a producer and supplier
of a number of products, including unleaded gasoline, diesel oil, diesel oil
for heating purposes (light fuel oil), aviation fuel and heavy fuel oil. It also
specialises in the production and sale of lubricating oils and bitumens.
88 -
Birchcliff Energy Ltd. (the Company) is a Calgary-based intermediate oil and
gas company that explores, develops and produces natural gas, light oil and
natural gas liquids. The Companys operations are concentrated in the Peace
River Arch area of Alberta.
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
27
Rank Rating Description
89 -
Bonanza Creek Energy, Inc. (the Company) is an exploration and production
company focused on the extraction of oil and associated liquids-rich natural gas
in the United States. The Companys operations are focused in the Wattenberg
Field in the DJ Basin of Colorado and the Cotton Valley sands of southern
Arkansas.
90 -
Long Run Exploration, Ltd. (the Company) is an intermediate oil company
focused on light-oil development and exploration in western Canada. The
Company is focused in three areas in Alberta, namely Triassic oil, Duvernay,
and Carbonate oil.
91 -
EPL Oil & Gas, Inc. (the Company) is an independent oil and natural gas
exploration and production company. The Companys current operations are
concentrated in the U.S. GOM shelf & Gulf Coast, focusing on the state and
federal waters offshore LA.
92 -
Kosmos Energy Ltd. is a pathfnding oil and gas exploration and production
company headquartered in Bermuda. Its primary areas of operation are
underexplored regions of Africa and South America.
93 -
PDC Energy (the Company) is a 40-year old independent natural gas and oil
company. The company operates in Colorado, Ohio, and West Virginia.
94 -
Ultra Petroleum Corporation (Ultra or the Company) is an independent
energy company engaged in the exploration and production of oil and natural
gas. Its primary asset is the sand river play in the Green River basin of
Wyoming.
95 -
Kodiak Oil & Gas Corp. is an independent exploration and production
company. It is focused on exploring, developing and producing oil and natural
gas in the U.S. Rocky Mountain region, and has core operations in the Williston
Basin in Montana and North Dakota, and the Vermillion Basin of the Great
Green River basin.
96 -
PT Medco Energi Internasional Tbk (Medco Energi) is an Indonesian
company operating in the oil & gas exploration and production business listed
on the Jakarta Stock Exchange since 1994. Currently, Medco Energi is focused
on oil & gas exploration, development and production, and power generation.
97 -
Laredo Petroleum, Inc. (the Company) is an independent energy company
with headquarters in Tulsa, Oklahoma. The Company is focused on the
exploration, development and acquisition of oil and natural gas properties in
the Permian and Mid-Continent regions of the United States.
98 -
Carrizo Oil & Gas, Inc. (the Company) is a Houston-based energy company
actively engaged in the exploration, development, and production of oil and
gas. The Companys current operations are principally focused in producing oil
and gas shales primarily in the Eagle Ford Shale in South Texas, the Niobrara
Formation in Colorado, the Marcellus Shale in Pennsylvania, and the Utica Shale
in Ohio.
99 B
Athabasca Oil Corporation is an Alberta-based company focused on the
development of oil sands in the Athabasca region in northeastern Alberta and
light oil resources in northwestern Alberta.
100 -
Resolute Energy Corporation (Resolute) is a private company engaged in
the acquisition, development and production of domestic oil and gas. Resolutes
primary producing assets are its properties in Aneth Field, located in the
Paradox Basin in southeast Utah and Hilight Field, a conventional gas feld in
the Powder River Basin of northeastern Wyoming.
- -
W&T Offshore, Inc. is an independent oil and natural gas acquisition,
exploitation and exploration company, with a focus primarily in the Gulf of
Mexico.
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
28
Rank Rating Description
- -
YPF S.A. (the Company), acronym for Yacimientos Petrolferos Fiscales
(Treasury Petroleum Fields), is a vertically integrated Argentine energy
company. The Company engages in the exploration and production of oil and
gas, as well as in transportation, refning, and marketing of gas and petroleum
products.
- -
Pakistan Petroleum Limited is a major supplier of natural gas in addition to
producing crude oil, natural gas liquids and liquefed petroleum gas.
- -
Raging River Exploration Inc. engages in the exploration, development, and
production of oil and gas properties in western Canada. It primarily focuses
its operations on the Dodsland light oil play in southwestern Saskatchewan.
Raging River Exploration Inc. is headquartered in Calgary, Canada.
- -
Freehold Royalties Ltd. is an oil and gas company based in Calgary, Alberta.
The companys royalty interests are a major contributor to operating and
fnancial performance and are not subject to expenses such as operating and
capital costs. The companys assets generate income from crude oil, natural
gas, natural gas liquids, and potash.
- -
Mari Petroleum Company Limited (the Company) is an exploration and
production company located in Pakistan. It operates the countrys second
largest gas reservoir at Mari Field, District Ghotki, Sindh. The Company is
primarily engaged in exploration, development and production of hydrocarbon
potentials in the country.
- -
BlackPearl Resources Inc. (the Company) is a publicly held Canadian oil and
gas company. The Companys focus is heavy oil and oil sands assets located in
western Canada.
- -
Bonterra Energy Corp. is an oil and gas company headquartered in Calgary,
Alberta, with an asset base of properties across Western Canada.
- -
Oil & Gas Development Company Limited (the Company), headquartered
in Islamabad Pakistan, explores, develops, produces, and sells oil and gas
resources. The Company primarily produces crude oil, gas, liquefed petroleum
gas, and sulphur.
- -
Surge Energy Inc. (Surge Energy or the Company) is an oil-focused oil and
gas company with operations in Alberta, Manitoba and North Dakota.
- -
Bellatrix Exploration Ltd. (Bellatrix) is a Canada-based oil and gas
company. Bellatrix is engaged in the exploration, acquisition, development and
production, of oil and natural gas reserves in the provinces of Alberta, British
Columbia and Saskatchewan.
- -
Longview Oil Corp. (Longview or the Company) is a Canada-based oil and
natural gas production, exploitation and acquisition company in the Western
Canadian sedimentary basin. It aims to acquire and operate primarily producing
crude oil properties. The Company was a wholly owned subsidiary of Advantage
Oil & Gas Ltd (Advantage).
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Rank Rating Description
- -
Twin Butte Energy Limited (the Company) is an oil and gas company based
in Calgary. The Company focuses on heavy oil in the greater Lloydminster area
along the Alberta and Saskatchewan border.
- -
Vaalco Energy, Inc. (the Company) is a Houston, Texas based independent
energy company engaged in the acquisition, exploration, development and
production of crude oil and natural gas. The Companys properties and
exploration activities are located in Gabon and Angola.
- -
Approach Resources Inc. (the Company) is an independent energy company
headquartered in Fort Worth, Texas. The Company focuses on exploring for and
developing oil and gas reserves in the West Texas Permian Basin.
- -
Painted Pony Petroleum Ltd. is a Canadian public resource company based
in Calgary, Alberta, with operations in Saskatchewan, Alberta and British
Columbia.
- -
Cequence Energy Ltd. is a natural gas and oil resource company based in
Calgary, Alberta. Its properties are located in the Deep Basin, with Simonette
as its primary focus area.
- -
Chinook Energy Inc. is a balanced mid-sized producer based in Calgary,
Alberta. Its international oil and gas exploration and production operations are
focused in Tunisia and Western Canada.
- -
Renegade Petroleum Ltd. (Renegade) is an exploitation and exploration
focused light oil producer. Renegades primary focus areas are located in
southeast Saskatchewan in various pools, such as Bakken, Souris Valley,
Frobisher, Midale and Kisby, as well as the Dodsland area of the Viking play in
west-central Saskatchewan.
- -
LINN Energy, LLC (the Company) is an independent oil and natural gas
company headquartered in Houston, Texas. The Companys core focus areas
are the Mid-Continent, Permian basin, Hugoton basin, Rockies, Michigan and
California.
- -
EXCO Resources, Inc. (the Company) is a natural gas and oil company
headquartered in Dallas, Texas. The Company is engaged in the exploration,
exploitation, development and production of onshore natural gas and oil
properties. Its operations are focused in the Permian Basin, the Appalachian
basin and the East Texas/North Louisiana area.
- -
Bill Barrett Corporation (the Company) is an oil and natural gas exploration
and development company headquartered in Denver, Colorado. The Companys
assets are located in the Rocky Mountain region with active exploration and
development properties located throughout the area.
- -
Halcn Resources Corporation is an independent energy company focused
on the acquisition, production, exploration and development of onshore liquids-
rich assets in the United States.
- -
Penn Virginia Corporation (the Company) is an independent oil and gas
company engaged primarily in the exploration, development and production
of oil, natural gas liquids and natural gas in various domestic onshore regions
of the United States, with a primary focus in Texas, and to a lesser extent, the
Mid-Continent, Mississippi and the Marcellus Shale in Appalachia. The company
is headquartered in Radnor, PA.
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Rank Rating Description
- -
NuVista Energy Ltd. is a company engaged in exploration, development and
production activities on properties located in three operating regions of the
Western Canadian Sedimentary Basin.
- -
Comstock Resources, Inc. (the Company) is a growing independent energy
company engaged in the acquisition, development, production and exploration
of oil and natural gas properties. The Companys operations are primarily
focused in Texas and Louisiana.
- -
WPX Energy, Inc. is an independent natural gas and oil exploration and
production company engaged in the development of unconventional properties.
It is based in Tulsa, Oklahoma, with operations and interests in Colorado, New
Mexico, North Dakota, Pennsylvania, Wyoming, Argentina and Colombia.
- -
RMP Energy Inc. is an oil and gas company with assets concentrated in West
Central Alberta and southeastern Saskatchewan.
- -
Warren Resources, Inc. (the Company) is an independent energy company
engaged in the acquisition, exploration, development and production of
domestic onshore crude oil and gas reserves. The Company focuses primarily
on the exploration and development of waterfood oil recovery properties in the
Wilmington Field within the Los Angeles Basin of California.
- -
Eagle Energy Trust (the Trust) is an unincorporated open-ended limited
purpose trust. The Trust is engaged in the acquisition, development, and
production of petroleum reserves in the United States. The Trust is based in
Calgary, Canada.
- -
Zargon Oil & Gas Ltd. (the Company) is engaged in exploring, developing,
and producing oil and natural gas in Canada and the United States. The
Company is based in Calgary, Canada.
- -
Rock Energy Inc. is an exploration and production company. Its current
assets are primarily heavy oil properties in the Plains area and Southwest
Saskatchewan.
- -
Gastar Exploration Ltd. is engaged in the exploration, development and
production of natural gas, natural gas liquids, oil and condensate in the United
States.
- -
Parallel Energy Trust (the Trust) is an unincorporated open-ended limited
purpose trust. The Trusts objective is to create returns for investors through
the acquisition and development of conventional oil and natural gas reserves
and production with unexploited potential, located in certain regions of the
United States.
- -
Delphi Energy Corp. (the Company) is an oil and gas company operating
in Alberta, Canada. It is engaged in the exploration for, development and
production of crude oil and natural gas from properties and assets located in
Western Canada. The Companys operations are primarily concentrated in the
Deep Basin of North West Alberta, with the Deep Basin located at Bigstone,
Hythe and Wapiti as its three core areas.
- -
Arcan Resources Ltd. is a junior oil producer located in the Swan Hills area of
north central Alberta.
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Rank Rating Description
- -
Forest Oil Corporation (the Company) is an independent oil and gas
exploration and production company. The Company is engaged in the
exploration, acquisition, development, production and marketing of natural gas
and crude oil in the United States and has principal reserves and producing
properties in Arkansas, Louisiana, Oklahoma and Texas.
- -
Atlantic Petroleum P/F (the Company) is a full cycle exploration and
production company. The Companys main focus is offshore North West Europe.
It has a total of 40 oil and gas licences in the UK, Faroe Islands, Ireland,
Norway & the Netherlands, and produces oil & gas from three felds in the
United Kingdom North Sea.
- -
Connacher Oil and Gas Limited (Connacher or the Company) is a Calgary-
based exploration, development and production company active in the
production and sale of bitumen. Connachers principal asset is a 100 percent
interest in approximately 500 million barrels of bitumen reserves located on the
Companys Great Divide oil sands leases near Fort McMurray, Alberta.
- -
TORC Oil and Gas Ltd. (the Company) is a Canada-based company engaged
in the acquisition, exploration, development and production of crude oil and
natural gas assets. The Company produces crude oil, natural gas liquids and
natural gas within Canada and the United States.
- -
Hellenic Petroleum S.A. is an energy group in south-east Europe and an
industrial and commercial company in Greece. Its activities consist of refning
& marketing, petrochemicals, hydrocarbon exploration and production, and
natural gas and power.
- -
Pinecrest Energy Inc. is a Calgary, Alberta based petroleum and natural
gas exploration, production and development company, with operations in the
Canadian provinces of Alberta and Saskatchewan.
- -
Goodrich Petroleum Corporation is an independent exploration and
production company that drills for, acquires, develops and produces natural gas
and crude oil primarily in the Haynesville Shale and Cotton Valley Trend in East
Texas and North Louisiana, the Eagle Ford Shale oil window of South Texas, and
in the Tuscaloosa Marine Shale of South Mississippi and Louisiana.
- -
Questerre Energy Corporation (the Company) is an independent energy
company focused on unconventional oil and gas projects. The Company has
base production and reserves in the tight oil bakken and Torquay of southeast
Saskatchewan.
- -
Pan Orient Energy Corp. (the Company) is a Canadian junior oil and
natural gas company based in Calgary, Alberta. The Company owns on-shore
properties in Thailand and Indonesia, as well as Canadian oil sand properties.
- -
Paramount Resources Ltd. (the Company) is engaged in the exploration,
development, production, processing, transportation and marketing of natural
gas, crude oil and natural gas liquids in Western Canada, as well as Montana
and North Dakota, United States. The Company is headquartered in Calgary.
- -
ShaMaran Petroleum Corp. (the Company) engages in the acquisition,
exploration, and development of oil and gas properties in the Kurdistan region
of Iraq. The Company is based in Vancouver, Canada.
- -
Africa Oil Corp. is a Canadian oil and gas company with assets in Kenya and
Ethiopia as well as Puntland (Somalia).
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Rank Rating Description
- -
Strategic Oil & Gas Ltd. (the Company) engages in the exploration and
development of petroleum and natural gas reserves in Western Canada. The
Company holds interests in various oil and natural gas properties located in
Amber, Conrad, Steen River, Larne, and Taber areas of Alberta, Canada, and in
Northeast British Columbia. It also has properties located in Wyoming, United
States. Strategic Oil & Gas Ltd. was incorporated in 1987 and is headquartered
in Calgary, Canada.
- -
Perpetual Energy Inc. (the Company) is an independent energy company
that is involved in the acquisition, exploration and development of oil and gas
properties in Alberta. The Company was formerly known as Paramount Energy
Trust prior to June 2010.
- -
Noreco SA (Noreco) is an independent Norwegian oil and gas company with
focus on exploration, development and production in the North Sea region.
Noreco operates in Norway, Denmark and the United Kingdom, and employs
around 70 oil and gas professionals.
- -
Magnum Hunter Resources Corporation is an independent oil and gas
company engaged in the exploration for and the exploitation, acquisition,
development and production of crude oil, natural gas and natural gas liquids
resources in the United States and Canada.
- -
Canacol Energy Ltd. (Canacol) and its subsidiaries are primarily engaged in
petroleum and natural gas exploration and development activities in Colombia,
Brazil, Ecuador and Guyana. Canacols primary producing property is the
Rancho Hermoso feld in Colombia.
- -
Isramco, Inc. (the Company) together with its subsidiaries, engages in the
acquisition, development, production, and exploration of oil and natural gas
properties in the United States and Israel. The Company was founded in 1982
and is based in Houston, Texas.
- -
Argent Energy Trust owns, operates and manages oil and gas properties
located primarily in South Texas and Oklahoma, with drilling prospects focused
in the Eagle Ford, Austin Chalk and Wilcox.
- -
Quicksilver Resources Inc. focuses on development of unconventional
natural gas and oil reservoirs found in fractured shale gas and coal seams in
North America.
- -
Pine Cliff Energy Ltd. (the Company) engages in the exploration,
development, and production of natural gas, crude oil, and natural gas liquids
primarily in Canada. The Company primarily holds interest in the Carrot Creek
assets in the Western Canadian Sedimentary Basin, and the Southern Alberta
assets.
- -
Sunshine Oilsands Ltd. (the Company) is a Canada-based oil sand
accumulations exploration and development company. Its business area
focuses on the oil sands leases in the Athabasca oil sands area of Alberta. The
Company is engaged in the exploration, development and production of oil
sands leases. Its principal operating regions in the Athabasca area are at West
Ells, Thickwood, Legend Lake, Harper, Muskwa, Goffer and Portage.
- -
Antrim Energy Inc. is a Canadian-based international oil and gas exploration
and production company with assets offshore in the United Kingdom North
Sea and Ireland.
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Rank Rating Description
- CCC
Southern Pacifc Resource Corp. is a publicly traded oil and gas company
engaged in the development, exploration and production of in-situ oil sands
and heavy oil assets in Western Canada.
- -
HKN, Inc. (the Company) is a publicly traded company incorporated in 1973
in the State of California and reincorporated in 1979 in the State of Delaware.
Main operations of the Company are oil and gas exploration, development and
production.
- -
Anderson Energy Ltd. is an oil and gas development company. Its principal
property is in central Alberta around the Sylvan Lake and Pembina felds.
- -
Niko Resources Ltd. (the Company) is focused on sustained growth through
successful exploration. The Company is currently a non-government landowner
in both Indonesia and Trinidad and is involved in the feld of international oil
and natural gas exploration and production.
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July 2014
34
KEY CREDIT METRICS
2014 Q1 Summary
Key credit metrics remained relatively fat for the period; however, the industry continues to beneft from
top-of-the-cycle conditions in the liquids segment. Ongoing weakness of North American natural gas
prices continues to negatively impact proftability for operators with signifcant exposure to this market.
2014 Outlook
DBRS expects oil prices to remain well above average, at above $80 for WTI. At these levels, most
issuers are able to fund current capex projects primarily with internally generated cash fow.
North American natural gas fundamentals are expected to remain relatively weak, given current
conditions. Those issuers with >70% of their production mix in North American natural gas will likely
continue to experience weak credit metrics.
Key Credit Metrics
Company Name Rating
Adjusted
Total
Debt-to-Cash
Flow
EBIT
Interest
Coverage
Adjusted
Gross Debt
in Capital
Structure
Adjusted
Total
Debt-to-
EBITDA
CapEx-to-
Depreciation
Exxon Mobil Corporation - 0.71 108.93 16.3% 0.63 1.38
Imperial Oil Limited AA (high) 1.64 39.73 26.5% 1.50 1.38
Chevron Corporation AA 0.80 98.74 15.5% 0.70 1.96
Royal Dutch Shell plc - 1.17 20.21 20.0% 0.97 1.73
Total S.A. and Subsidiaries - 2.20 24.90 34.4% 1.54 1.05
Statoil ASA - 2.39 42.96 45.8% 1.22 2.17
CNOOC Limited
1
- 0.00 0.00 30.9% 1.16 1.54
PetroChina Company Ltd. - 1.85 9.43 31.1% 1.87 2.34
Sinopec Corp. - 2.80 8.06 39.8% 15.78 2.98
BP p.l.c. A 2.34 13.35 29.0% 1.87 1.73
Eni S.p.A. - 1.58 8.45 32.4% 1.07 1.25
Occidental Petroleum Corporation A 0.61 33.76 15.1% 0.54 1.29
ConocoPhillips A 1.43 9.31 31.6% 1.29 1.61
Inpex Corporation - 0.69 N.M. 16.3% 0.77 2.13
Suncor Energy Inc. A (low) 1.31 11.16 23.6% 1.06 2.20
Apache Corporation - 1.14 10.96 24.0% 0.96 N.M.
Husky Energy Inc. A (low) 1.13 9.01 22.6% 1.02 0.81
Marathon Oil Corporation - 1.27 22.52 25.4% 0.79 1.90
OMV Aktiengesellschaft - 1.63 13.66 27.1% 1.74 1.58
Cenovus Energy Inc. A (low) 1.84 7.20 38.4% 1.65 7.52
EOG Resources, Inc. - 0.86 16.09 29.3% 0.82 1.61
Canadian Natural Resources Limited BBB (high) 1.50 8.78 30.3% 1.31 2.50
BG Group plc - 2.68 13.20 38.6% 2.61 1.47
Devon Energy Corporation BBB (high) 2.65 6.59 38.6% 2.56 1.56
Hess Corporation - 1.79 7.90 30.0% 1.78 2.43
Talisman Energy Inc. BBB (high) 3.39 1.44 36.8% 2.17 0.27
OAO Gazprom
1
- 0.92 38.36 15.8% 0.85 3.33
OAO Lukoil - 0.77 24.30 13.8% 0.69 2.58
Rosneft - 2.35 8.18 42.6% 2.06 2.55
Petrobras - 7.69 3.32 58.8% 7.18 1.35
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Key Credit Metrics
Company Name Rating
Adjusted
Total
Debt-to-Cash
Flow
EBIT
Interest
Coverage
Adjusted
Gross Debt
in Capital
Structure
Adjusted
Total
Debt-to-
EBITDA
CapEx-to-
Depreciation
Murphy Oil Corporation BBB 1.66 11.21 37.6% 1.64 0.01
Canadian Oil Sands Limited BBB 1.16 10.44 25.9% 0.95 2.58
Anadarko Petroleum Corporation BBB 2.45 6.76 48.1% 1.84 1.41
Noble Energy Inc. - 1.61 5.28 36.1% 1.64 2.64
Encana Corporation BBB 2.20 2.81 33.7% 2.07 1.99
PGNiG S.A. - 1.04 15.34 17.5% 0.97 1.28
Energen Corporation - 2.23 5.23 40.7% 2.23 1.02
Repsol, S.A. - 2.71 8.82 30.2% 1.52 2.39
Ecopetrol S.A. - 0.61 24.56 16.2% 0.41 1.35
Southwestern Energy Co. - 0.84 13.94 32.5% 0.79 1.28
Continental Resources, Inc. - 1.86 7.94 54.8% 1.69 1.28
Pioneer Natural Resources Company - 1.29 4.38 29.8% 1.73 3.21
Newfeld Exploration Co. - 2.62 2.51 53.3% 3.04 3.96
Crescent Point Energy Corporation - 0.99 10.16 20.2% 0.89 1.96
MOL Group - 2.03 9.68 30.8% 1.19 2.04
Concho Resources Inc. - 2.37 4.09 49.5% 2.18 2.66
Pacifc Rubiales Energy Corp. - 3.88 8.60 63.8% 2.81 0.35
Cimarex Energy Co. - 0.71 15.65 20.6% 0.70 1.13
Denbury Resources Inc. - 2.91 3.89 41.3% 2.62 3.54
The Delek Group Ltd. - 58.86 0.81 68.5% 11.30 0.94
Chesapeake Energy Corporation - 2.56 3.52 42.3% 2.22 2.75
JSOC Bashneft - 1.78 11.12 39.6% 1.33 3.50
Whiting Petroleum Corporation - 1.56 6.91 40.6% 1.45 1.57
ARC Resources Ltd. - 1.18 10.61 24.3% 1.04 0.55
Vermilion Energy Inc. BB (low) 1.52 15.14 36.6% 1.10 7.00
Cabot Oil & Gas Corp. - 1.09 9.57 35.7% 0.99 1.94
Unit Corporation - 1.06 22.20 23.6% 3.57 4.07
QEP Resources Inc. - 2.92 2.95 50.3% 2.64 1.53
Baytex Energy Corp. - 1.09 7.54 37.0% 1.15 3.05
Penn West Petroleum Ltd. - 2.60 1.49 25.7% 2.12 3.01
SM Energy Company - 1.96 7.02 61.5% 1.73 2.05
Range Resources Corporation - 3.97 3.12 57.8% 3.14 1.89
Bonavista Energy Corporation - 1.94 5.62 32.1% 1.72 3.21
Galp Energia SGPS, SA
1
- 4.40 2.79 35.0% 3.41 N/A
MEG Energy Corporation - 11.72 1.42 47.4% 10.75 1.64
Tourmaline Oil Corp. - 0.91 21.17 13.8% 0.89 1.98
Enerplus Corporation - 1.41 4.99 35.8% 1.28 1.65
Energy XXI (Bermuda) Limited - 3.22 2.67 60.6% 2.66 1.64
Oasis Petroleum Inc. - 5.63 3.31 60.0% 4.21 2.74
Pengrowth Energy Corporation - 3.06 2.18 32.6% 2.29 1.55
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Key Credit Metrics
Company Name Rating
Adjusted
Total
Debt-to-Cash
Flow
EBIT
Interest
Coverage
Adjusted
Gross Debt
in Capital
Structure
Adjusted
Total
Debt-to-
EBITDA
CapEx-to-
Depreciation
SandRidge Energy, Inc. - 4.19 1.93 51.7% 2.92 3.45
LightStream Resources Ltd. - 3.14 2.13 51.8% 2.59 3.06
Stone Energy Corp. - 1.98 3.37 51.2% 1.64 2.17
Rosetta Resources Inc. - 2.96 5.40 54.7% 2.80 1.35
PEYTO Exploration & Development Corp. - 1.64 8.58 36.5% 1.46 2.28
Legacy Oil & Gas Inc. - 2.66 3.25 33.9% 2.23 1.74
Northern Oil & Gas Inc. - 2.76 3.56 51.4% 2.28 1.78
Gran Tierra Energy Inc. - 0.05 N/A 1.1% 0.04 1.66
Bankers Petroleum Ltd. - 0.37 28.12 15.4% 0.35 1.67
Whitecap Resources Inc. - 1.45 11.07 22.2% 1.27 1.93
TransGlobe Energy Corporation - 1.11 21.32 21.5% 0.66 5.09
Parex Resources Inc. - 0.30 27.95 13.2% 0.24 1.16
Trilogy Energy Corp. B 2.13 2.93 47.2% 1.74 1.46
Gulfport Energy Corporation - 1.09 2.63 12.3% 1.38 5.95
Advantage Oil & Gas Ltd. - 1.51 6.03 20.5% 1.35 0.57
Crew Energy Inc. B 2.46 0.96 31.9% 2.22 1.33
Grupa LOTOS S.A. - 7.78 1.23 42.2% 7.88 1.53
Birchcliff Energy Ltd. - 2.22 6.40 32.9% 1.93 0.43
Bonanza Creek Energy, Inc. - 1.73 5.29 43.8% 1.67 2.51
Long Run Exploration Ltd. - 1.87 5.41 42.6% 1.68 3.80
EPL Oil & Gas, Inc. - 2.04 3.80 52.9% 1.82 2.85
Kosmos Energy Ltd. - 2.03 3.64 43.1% 2.21 2.23
PDC Energy, Inc. - 2.96 2.03 40.8% 2.63 2.15
Ultra Petroleum Corp. - 4.35 4.16 109.8% 3.63 1.78
Kodiak Oil & Gas Corp. - 3.56 3.22 64.8% 3.08 1.81
PT Medco Energi Internasional Tbk - 4.43 2.83 56.6% 3.48 2.68
Laredo Petroleum Holdings, Inc. - 4.17 2.22 54.3% 3.36 2.29
Carrizo Oil & Gas, Inc. - 2.36 1.98 51.6% 2.29 2.53
Athabasca Oil Corporation B 97.16 (2.61) 14.3% 32.46 2.91
Resolute Energy Corporation - 5.45 1.13 57.8% 4.08 2.34
W&T Offshore - 2.20 1.59 68.7% 2.07 0.92
YPF S.A. - 1.17 3.39 39.2% 1.24 5.11
Pakistan Petroleum Limited - 0.00 146.50 0.2% 0.00 2.44
Raging River Exploration Inc. - 0.46 52.64 14.0% 0.41 1.54
Freehold Royalties Ltd. - 0.39 34.64 14.3% 0.32 1.26
Mari Petroleum Company Limited - 0.57 15.19 12.1% 0.27 1.77
BlackPearl Resources Inc. - 0.09 26.73 1.4% 0.09 2.39
Bonterra Energy Corp. - 1.05 15.86 23.0% 1.00 1.67
Oil & Gas Development Company
Limited
- 0.00 N/A 0.0% 0.00 1.10
Surge Energy Inc. - 2.63 6.24 28.8% 2.20 2.24
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Key Credit Metrics
Company Name Rating
Adjusted
Total
Debt-to-Cash
Flow
EBIT
Interest
Coverage
Adjusted
Gross Debt
in Capital
Structure
Adjusted
Total
Debt-to-
EBITDA
CapEx-to-
Depreciation
Bellatrix Exploration Ltd. - 2.13 10.18 27.2% 1.59 4.27
Longview Oil Corp. - 1.93 7.36 34.0% 1.58 1.45
Twin Butte Energy LTD. - 2.29 9.90 42.5% 1.50 3.44
Vaalco Energy, Inc. - 0.00 N/A 0.0% 0.00 1.10
Approach Resources Inc. - 1.97 3.11 26.2% 1.82 6.97
Painted Pony Petroleum Ltd. - 0.89 (5.58) 6.6% 1.06 1.19
Cequence Energy Ltd. - 1.44 5.39 17.1% 1.23 1.62
Chinook Energy Inc. - 0.98 6.31 20.7% 0.89 3.50
Renegade Petroleum Ltd. - 2.23 1.93 38.1% 1.86 1.92
LINN Energy, LLC - 7.20 1.36 62.9% 6.22 1.50
Exco Resources, Inc. - 4.51 1.14 79.3% 3.76 2.63
Bill Barrett Corporation - 3.95 0.88 51.9% 3.18 2.30
Halcn Resources Corporation - 6.05 0.64 72.2% 5.27 3.26
Penn Virginia Corporation - 5.27 0.62 61.2% 3.94 1.56
NuVista Energy Ltd. - 0.38 2.52 13.4% 1.03 1.15
Comstock Resources Inc. - 3.68 (0.39) 50.4% 3.08 1.44
WPX Energy, Inc. - 3.15 (1.29) 36.1% 3.09 0.57
RMP Energy Inc. - 1.50 12.27 30.7% 1.41 1.89
Warren Resources, Inc. - 0.36 9.91 33.3% 1.60 4.80
Eagle Energy Trust - 2.11 6.07 27.1% 1.88 2.85
Zargon Oil & Gas Ltd. - 0.93 4.03 42.0% 1.78 1.38
Rock Energy Inc. - 0.42 26.21 15.1% 0.42 2.75
Gastar Exploration Ltd. - 6.19 1.61 60.6% 4.33 2.13
Parallel Energy Trust - 5.51 1.70 44.3% 4.41 1.49
Delphi Energy Corp. - 2.77 3.86 36.9% 2.24 1.70
Arcan Resources Ltd. - 7.51 1.50 57.9% 4.80 4.20
Forest Oil Corporation - 2.77 0.79 96.4% 2.64 (0.18)
Atlantic Petroleum P/F - 1.10 53.00 41.8% 1.28 1.49
Connacher Oil and Gas Limited - 12.32 0.21 86.9% 10.48 1.69
TORC Oil & Gas Ltd. - 0.84 5.85 9.8% 1.07 1.61
Hellenic Petroleum S.A. - (26.69) (0.46) 61.8% 24.25 3.12
Pinecrest Energy Inc. - 2.92 (0.48) 41.8% 3.47 2.16
Goodrich Petroleum Corporation - 5.83 (0.51) 60.8% 4.88 1.53
Questerre Energy Corporation - 0.16 N/A 0.8% 0.18 2.07
Pan Orient Energy Corp. - 0.18 N/A 1.8% 0.23 1.43
Paramount Resources Ltd. - 17.66 (0.75) 51.2% 11.64 2.08
ShaMaran Petroleum Corp. - (57.17) (0.39) 31.1% (59.14) 0.87
Africa Oil Corp. - (0.21) N.M. 0.3% (0.29) N.M.
Strategic Oil & Gas Ltd. - 4.65 (7.13) 29.9% 3.80 0.99
Perpetual Energy Inc. - 6.34 (0.41) 82.6% 4.54 3.32
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Key Credit Metrics
Company Name Rating
Adjusted
Total
Debt-to-Cash
Flow
EBIT
Interest
Coverage
Adjusted
Gross Debt
in Capital
Structure
Adjusted
Total
Debt-to-
EBITDA
CapEx-to-
Depreciation
Noreco SA - 3.92 (0.89) 66.5% N.M. 1.89
Magnum Hunter Resources Corporation - 25.04 (0.29) 58.2% 9.98 3.09
Canacol Energy Ltd. - 2.90 (2.76) 37.5% 2.84 1.29
Isramco, Inc. - 3.35 4.23 86.8% 2.81 1.16
Argent Energy Trust - 4.33 (2.80) 35.0% 4.77 2.37
Quicksilver Resources Inc. - (48.30) 0.38 215.1% 12.90 3.88
Pine Cliff Energy Ltd. - 0.00 7.52 0.0% 0.00 3.43
Sunshine OilSands Ltd. - (0.87) (4.38) 1.9% (1.39) 4.82
Antrim Energy Inc. - (0.18) (23.60) 6.6% (0.23) 11.83
Southern Pacifc Resources Corp. CCC (49.60) (0.20) 63.6% 39.90 1.61
HKN, Inc. - (0.92) (102.42) 1.9% (0.38) 5.11
Anderson Energy Ltd. - 9.93 (0.16) 76.2% 3.96 0.99
Niko Resources Ltd. - (9.25) (3.87) 58.7% (13.03) 2.11
1. 2014 fgures refect YE December 31, 2013
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
39
INCOME STATEMENT DATA IN Q1 2014
Q1 2014 Summary
Earnings on a trailing twelve months basis ending March 31, 2014, increased modestly primarily due to
the favourable pricing environment and companies ongoing cost cutting initiatives.
2014 Outlook
DBRS anticipates earnings will likely be fat in 2014, as a modest increase in revenues is expected to be
more than offset by increasing depreciation levels and ongoing cost pressures despite the cost cutting
initiatives.
Income Statement Data ($ Millions where Applicable)
Company Name Rating
Net
Revenue EBITDA EBIT
EBIT
Margin Ratio
Net Income
Before Non-
Recurring
Items
Exxon Mobil Corporation - 419,218 56,480 39,216 9.4% 30,710
Imperial Oil Limited AA (high) 33,920 4,900 3,695 10.9% 2,816
Chevron Corporation AA 208,433 39,928 25,093 12.0% 19,184
Royal Dutch Shell plc - 448,083 47,207 27,909 6.2% 18,215
Total S.A. and Subsidiaries - 224,901 36,175 25,332 11.3% 14,334
Statoil ASA - 120,296 43,486 33,326 27.7% 11,985
CNOOC Limited
1
- 42,050 21,829 12,646 30.1% 9,750
PetroChina Company Ltd. - 345,792 51,590 27,380 7.9% 20,900
Sinopec Corp. - 435,686 26,757 15,088 3.5% 9,971
BP p.l.c. A 370,701 28,410 14,507 3.9% 15,562
Eni S.p.A. - 162,869 36,467 24,058 14.8% 10,296
Occidental Petroleum Corporation A 24,671 14,232 8,878 36.0% 5,630
ConocoPhillips A 55,662 19,259 11,740 21.1% 8,013
Inpex Corporation - 13,320 7,321 7,321 55.0% 1,766
Suncor Energy Inc. A (low) 40,092 12,327 7,915 19.7% 5,372
Apache Corporation - 16,028 11,509 6,015 37.5% 2,877
Husky Energy Inc. A (low) 23,360 5,857 2,828 12.1% 1,928
Marathon Oil Corporation - 14,089 8,486 5,719 40.6% 2,169
OMV Aktiengesellschaft - 41,463 4,425 2,765 6.7% 1,529
Cenovus Energy Inc. A (low) 19,350 3,820 1,988 10.3% 788
EOG Resources, Inc. - 15,330 8,090 4,389 28.6% 3,029
Canadian Natural Resources Limited BBB (high) 16,786 8,717 4,004 23.9% 2,782
BG Group plc - 14,972 8,106 5,837 39.0% 3,555
Devon Energy Corporation BBB (high) 12,156 6,157 3,342 27.5% 1,113
Hess Corporation - 21,732 5,844 3,011 13.9% 2,461
Talisman Energy Inc. BBB (high) 4,841 2,408 438 9.0% (218)
OAO Gazprom
1
- 164,796 64,650 51,498 31.2% 37,639
OAO Lukoil - 143,363 18,800 12,901 9.0% 9,767
Rosneft - 160,033 33,262 19,783 12.4% 16,218
Petrobras - 139,611 31,249 18,246 13.1% 14,574
Murphy Oil Corporation BBB 5,295 3,047 1,461 27.6% 896
Canadian Oil Sands Limited BBB 4,152 1,759 1,274 30.7% 970
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
40
Income Statement Data ($ Millions where Applicable)
Company Name Rating
Net
Revenue EBITDA EBIT
EBIT
Margin Ratio
Net Income
Before Non-
Recurring
Items
Anadarko Petroleum Corporation BBB 16,891 10,498 6,469 38.3% 3,592
Noble Energy Inc. - 5,053 3,215 1,588 31.4% 1,171
Encana Corporation BBB 6,936 3,191 1,603 23.1% 1,166
PGNiG S.A. - 10,014 2,127 1,319 13.2% 916
Energen Corporation - 1,805 894 367 20.3% 231
Repsol, S.A. - 56,319 11,034 8,490 15.1% 1,292
Ecopetrol S.A. - 38,575 16,068 13,059 33.9% 7,980
Southwestern Energy Co. - 3,750 2,303 1,470 39.2% 770
Continental Resources, Inc. - 3,872 3,016 1,991 51.4% 1,179
Pioneer Natural Resources Company - 3,337 1,652 736 22.0% 1,383
Newfeld Exploration Co. - 1,972 1,223 514 26.1% 326
Crescent Point Energy Corporation - 3,088 2,396 819 26.5% 534
MOL Group - 24,372 3,720 2,495 10.2% 698
Concho Resources Inc. - 2,509 1,736 911 36.3% 397
Pacifc Rubiales Energy Corp. - 4,652 2,599 1,177 25.3% 458
Cimarex Energy Co. - 2,171 1,527 874 40.2% 634
Denbury Resources Inc. - 2,549 1,382 844 33.1% 391
The Delek Group Ltd. - 9,944 594 318 3.2% (174)
Chesapeake Energy Corporation - 18,900 6,094 3,211 17.0% 1,832
JSOC Bashneft - 17,271 3,268 2,814 16.3% 1,854
Whiting Petroleum Corporation - 2,783 1,862 936 33.6% 600
ARC Resources Ltd. - 1,542 1,037 469 30.4% 295
Vermilion Energy Inc. BB (low) 1,269 960 620 48.9% 245
Cabot Oil & Gas Corp. - 1,870 1,274 573 30.6% 331
Unit Corporation - 388 193 106 27.2% 69
QEP Resources Inc. - 3,123 1,498 496 15.9% 367
Baytex Energy Corp. - 1,199 661 322 26.8% 202
Penn West Petroleum Ltd. - 2,311 1,234 268 11.6% 199
SM Energy Company - 2,411 1,544 742 30.8% 444
Range Resources Corporation - 1,889 1,067 561 29.7% 275
Bonavista Energy Corporation - 915 607 253 27.7% 82
Galp Energia SGPS, SA
1
- 19,620 996 503 2.6% 331
MEG Energy Corporation - 1,411 394 212 15.1% (5)
Tourmaline Oil Corp. - 888 670 279 31.5% 195
Enerplus Corporation - 1,447 866 287 19.8% 70
Energy XXI (Bermuda) Limited - 1,221 770 369 30.2% 122
Oasis Petroleum Inc. - 788 540 309 39.2% 129
Pengrowth Energy Corporation - 1,347 745 195 14.4% 10
SandRidge Energy, Inc. - 1,915 1,100 512 26.8% 58
LightStream Resources Ltd. - 1,080 804 296 27.4% 100
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
41
Income Statement Data ($ Millions where Applicable)
Company Name Rating
Net
Revenue EBITDA EBIT
EBIT
Margin Ratio
Net Income
Before Non-
Recurring
Items
Stone Energy Corp. - 956 632 274 28.7% 78
Rosetta Resources Inc. - 869 597 349 40.1% 199
PEYTO Exploration & Development
Corp.
- 604 529 287 47.5% 168
Legacy Oil & Gas Inc. - 507 353 124 24.5% 43
Northern Oil & Gas Inc. - 383 284 151 39.4% 44
Gran Tierra Energy Inc. - 547 372 215 39.4% 115
Bankers Petroleum Ltd. - 486 314 211 43.5% 67
Whitecap Resources Inc. - 476 359 186 39.0% 99
TransGlobe Energy Corporation - 314 216 164 52.2% 82
Parex Resources Inc. - 496 318 131 26.5% 62
Trilogy Energy Corp. B 504 327 115 22.9% 36
Gulfport Energy Corporation - 325 219 66 20.3% 213
Advantage Oil & Gas Ltd. - 273 190 75 27.4% 2
Crew Energy Inc. B 352 208 17 4.8% 51
Grupa LOTOS S.A. - 9,124 280 56 0.6% 17
Birchcliff Energy Ltd. - 341 243 130 38.1% 74
Bonanza Creek Energy, Inc. - 471 313 155 33.0% 66
Long Run Exploration Ltd. - 462 272 89 19.3% 56
EPL Oil & Gas, Inc. - 670 399 200 29.8% 20
Kosmos Energy Ltd. - 836 372 162 19.4% (50)
PDC Energy, Inc. - 498 254 108 21.7% 58
Ultra Petroleum Corp. - 1,034 703 458 44.3% 350
Kodiak Oil & Gas Corp. - 997 734 385 38.6% 169
PT Medco Energi Internasional Tbk - 886 342 262 29.5% 39
Laredo Petroleum Holdings, Inc. - 675 450 231 34.3% 132
Carrizo Oil & Gas, Inc. - 565 397 164 29.0% 59
Athabasca Oil Corporation B 112 17 (124) (110.1%) (118)
Resolute Energy Corporation - 362 179 55 15.3% 75
W&T Offshore - 979 581 136 13.9% 40
YPF S.A. - 15,681 4,056 1,988 12.7% 1,112
Pakistan Petroleum Limited - 1,081 684 601 55.6% 413
Raging River Exploration Inc. - 203 162 99 48.6% 63
Freehold Royalties Ltd. - 184 152 92 50.2% 65
Mari Petroleum Company Limited - 960 84 69 7.2% 66
BlackPearl Resources Inc. - 192 102 28 14.4% 16
Bonterra Energy Corp. - 271 203 107 39.4% 71
Oil & Gas Development Company
Limited
- 2,362 1,649 1,500 63.5% 1,022
Surge Energy Inc. - 258 170 69 26.6% 52
Bellatrix Exploration Ltd. - 328 219 114 34.7% 78
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
42
Income Statement Data ($ Millions where Applicable)
Company Name Rating
Net
Revenue EBITDA EBIT
EBIT
Margin Ratio
Net Income
Before Non-
Recurring
Items
Longview Oil Corp. - 129 79 40 31.1% 20
Twin Butte Energy LTD. - 423 232 82 19.4% 29
Vaalco Energy, Inc. - 153 73 55 35.9% 23
Approach Resources Inc. - 207 140 56 27.1% (9)
Painted Pony Petroleum Ltd. - 80 37 (2) (2.5%) 1
Cequence Energy Ltd. - 118 73 27 22.5% 13
Chinook Energy Inc. - 196 99 25 12.7% 10
Renegade Petroleum Ltd. - 276 149 39 14.0% 4
LINN Energy, LLC - 2,624 1,522 623 23.7% 229
Exco Resources, Inc. - 695 412 138 19.9% (41)
Bill Barrett Corporation - 558 338 71 12.8% 106
Halcn Resources Corporation - 1,084 680 179 16.5% 248
Penn Virginia Corporation - 481 324 58 12.0% (140)
NuVista Energy Ltd. - 217 106 20 9.0% (211)
Comstock Resources Inc. - 562 312 (29) (5.1%) (63)
WPX Energy, Inc. - 2,995 773 (143) (4.8%) 198
RMP Energy Inc. - 134 100 41 30.6% 24
Warren Resources, Inc. - 162 73 30 18.3% 33
Eagle Energy Trust - 74 48 15 20.7% (0)
Zargon Oil & Gas Ltd. - 132 69 24 17.8% 10
Rock Energy Inc. - 76 42 9 12.2% 2
Gastar Exploration Ltd. - 114 73 34 29.8% 45
Parallel Energy Trust - 101 53 19 18.4% 8
Delphi Energy Corp. - 110 61 23 20.7% 11
Arcan Resources Ltd. - 102 63 27 26.1% (4)
Forest Oil Corporation - 553 355 101 18.3% (136)
Atlantic Petroleum P/F - 102 62 38 37.2% 21
Connacher Oil and Gas Limited - 431 101 18 4.1% (94)
TORC Oil & Gas Ltd. - 184 94 18 9.9% (2)
Hellenic Petroleum S.A. - 12,764 144 (140) (1.1%) (270)
Pinecrest Energy Inc. - 83 34 (3) (3.0%) (1)
Goodrich Petroleum Corporation - 255 104 (25) (10.0%) (84)
Questerre Energy Corporation - 26 11 1 5.7% 8
Pan Orient Energy Corp. - 30 20 5 17.3% (203)
Paramount Resources Ltd. - 245 96 (51) (20.8%) (83)
ShaMaran Petroleum Corp. - 0 (2) (3) N/A (6)
Africa Oil Corp. - 0 (9) (9) N/A (43)
Strategic Oil & Gas Ltd. - 50 20 (4) (7.4%) (5)
Perpetual Energy Inc. - 211 86 (13) (6.4%) (60)
Noreco SA - 177 (0) (67) (38.1%) 5
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
43
Income Statement Data ($ Millions where Applicable)
Company Name Rating
Net
Revenue EBITDA EBIT
EBIT
Margin Ratio
Net Income
Before Non-
Recurring
Items
Magnum Hunter Resources
Corporation
- 334 90 (21) (6.3%) (42)
Canacol Energy Ltd. - 191 58 21 10.9% 7
Isramco, Inc. - 79 40 28 35.6% 13
Argent Energy Trust - 128 48 (23) (17.6%) (113)
Quicksilver Resources Inc. - 512 156 97 19.0% 135
Pine Cliff Energy Ltd. - 45 22 3 5.8% 3
Sunshine OilSands Ltd. - 0 (12) (13) N/A (33)
Antrim Energy Inc. - 0 (6) (6) N/A (3)
Southern Pacifc Resources Corp. CCC 115 17 (13) (11.5%) (39)
HKN, Inc. - 1 (3) (4) (375.1%) (2)
Anderson Energy Ltd. - 47 23 (2) (3.4%) (35)
Niko Resources Ltd. - 129 (29) (138) (106.6%) (7)
1. 2014 fgures refect YE December 31, 2013
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
44
BALANCE SHEET AND CAPITAL STRUCTURE IN Q1 2014
Q1 2014 Summary
Total debt remained at elevated levels in Q1 2014, as issuers continue to spend aggressively on capex.
Despite high debt levels, many issuers maintained strong balance sheets and have built signifcant cash
balances to buffer any unexpected market shocks.
2014 Outlook
The balance sheets for the sector are well positioned to sustain near-term pricing volatility shocks.
However, should pricing collapse, the companies will likely curtail capex or reduce dividends to preserve
liquidity.
Balance Sheet and Capital Structure ($ Millions where Applicable)
Company Name Rating
Cash & Cash
Equivalents
DBRS
Adjusted
Total Debt
DBRS
Adjusted
Total Equity
Adjusted
Gross Debt
in Capital
Structure
DBRS
Adjusted
Total Capital
Exxon Mobil Corporation - 5,601 35,713 182,891 16.3% 218,604
Imperial Oil Limited AA (high) 102 7,347 20,361 26.5% 27,708
Chevron Corporation AA 16,183 27,842 151,810 15.5% 179,652
Royal Dutch Shell plc - 11,924 45,729 183,130 20.0% 228,859
Total S.A. and Subsidiaries - 23,659 55,864 106,384 34.4% 162,248
Statoil ASA - 21,978 52,934 62,663 45.8% 115,597
CNOOC Limited
1
- 2,365 25,213 56,436 30.9% 81,649
PetroChina Company Ltd. - 8,544 96,491 213,440 31.1% 309,931
Sinopec Corp. - 18,986 422,157 639,451 39.8% 1,061,608
BP p.l.c. A 27,358 53,249 130,200 29.0% 183,449
Eni S.p.A. - 8,795 39,169 81,618 32.4% 120,787
Occidental Petroleum Corporation A 2,332 7,723 43,369 15.1% 51,092
ConocoPhillips A 7,730 24,818 53,621 28.3% 78,439
Inpex Corporation - 6,311 5,665 29,080 16.3% 34,745
Suncor Energy Inc. A (low) 4,846 13,074 42,258 23.6% 55,332
Apache Corporation - 1,643 11,089 35,177 24.0% 46,266
Husky Energy Inc. A (low) 1,518 5,998 20,535 22.6% 26,533
Marathon Oil Corporation - 1,964 6,730 19,805 25.4% 26,535
OMV Aktiengesellschaft - 11,761 7,687 20,725 27.1% 28,412
Cenovus Energy Inc. A (low) 815 6,289 10,099 38.4% 16,388
EOG Resources, Inc. - 1,667 6,629 16,033 29.3% 22,663
Canadian Natural Resources Limited BBB (high) 19 11,446 26,337 30.3% 37,783
BG Group plc - 6,344 21,166 33,654 38.6% 54,820
Devon Energy Corporation BBB (high) 2,027 15,758 25,046 38.6% 40,804
Hess Corporation - 1,288 10,406 24,242 30.0% 34,648
Talisman Energy Inc. BBB (high) 532 5,228 8,989 36.8% 14,217
OAO Gazprom
1
- 20,957 54,798 292,991 15.8% 347,789
OAO Lukoil - 2,326 12,904 80,567 13.8% 93,471
Rosneft - 6,254 68,511 92,134 42.6% 160,645
Petrobras - 34,685 224,265 157,214 58.8% 381,479
Murphy Oil Corporation BBB 1,021 5,006 8,304 37.6% 13,310
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
45
Balance Sheet and Capital Structure ($ Millions where Applicable)
Company Name Rating
Cash & Cash
Equivalents
DBRS
Adjusted
Total Debt
DBRS
Adjusted
Total Equity
Adjusted
Gross Debt
in Capital
Structure
DBRS
Adjusted
Total Capital
Canadian Oil Sands Limited BBB 292 1,665 4,759 25.9% 6,424
Anadarko Petroleum Corporation BBB 5,924 19,353 20,917 48.1% 40,270
Noble Energy Inc. - 1,354 5,281 9,361 36.1% 14,642
Encana Corporation BBB 2,162 6,610 5,234 33.7% 11,844
PGNiG S.A. - 1,216 2,064 9,746 17.5% 11,810
Energen Corporation - 35 1,995 2,911 40.7% 4,906
Repsol, S.A. - 6,113 16,821 38,815 30.2% 55,636
Ecopetrol S.A. - 2,475 6,523 33,782 16.2% 40,304
Southwestern Energy Co. - 19 1,827 3,800 32.5% 5,628
Continental Resources, Inc. - 52 5,082 4,188 54.8% 9,269
Pioneer Natural Resources Company - 257 2,858 6,724 29.8% 9,582
Newfeld Exploration Co. - 107 3,712 3,250 53.3% 6,962
Crescent Point Energy Corporation - 15 2,132 8,422 20.2% 10,554
MOL Group - 1,058 4,439 9,965 30.8% 14,403
Concho Resources Inc. - 0 3,791 3,861 49.5% 7,653
Pacifc Rubiales Energy Corp. - 306 7,295 4,141 63.8% 11,436
Cimarex Energy Co. - 5 1,075 4,148 20.6% 5,223
Denbury Resources Inc. - 8 3,619 5,148 41.3% 8,767
The Delek Group Ltd. - 1,610 6,717 3,091 68.5% 9,808
Chesapeake Energy Corporation - 1,004 13,527 18,477 42.3% 32,004
JSOC Bashneft - 3,687 4,350 6,643 39.6% 10,993
Whiting Petroleum Corporation - 406 2,691 3,941 40.6% 6,633
ARC Resources Ltd. - 10 1,081 3,369 24.3% 4,450
Vermilion Energy Inc. BB (low) 151 1,058 1,832 36.6% 2,890
Cabot Oil & Gas Corp. - 25 1,257 2,269 35.7% 3,526
Unit Corporation - 1 690 2,235 23.6% 2,925
QEP Resources Inc. - 4 3,962 3,916 50.3% 7,878
Baytex Energy Corp. - 2 759 1,290 37.0% 2,049
Penn West Petroleum Ltd. - 0 2,611 7,562 25.7% 10,173
SM Energy Company - 236 2,675 1,675 61.5% 4,350
Range Resources Corporation - 0 3,355 2,450 57.8% 5,804
Bonavista Energy Corporation - 2 1,044 2,209 32.1% 3,254
Galp Energia SGPS, SA
1
- 1,503 3,677 6,416 36.4% 10,093
MEG Energy Corporation - 890 4,237 4,706 47.4% 8,943
Tourmaline Oil Corp. - 0 595 3,703 13.8% 4,298
Enerplus Corporation - 6 1,108 1,987 35.8% 3,095
Energy XXI (Bermuda) Limited - 304 2,048 1,333 60.6% 3,380
Oasis Petroleum Inc. - 56 2,277 1,520 60.0% 3,797
Pengrowth Energy Corporation - 315 1,706 3,528 32.6% 5,234
SandRidge Energy, Inc. - 1,180 3,214 2,998 51.7% 6,212
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
46
Balance Sheet and Capital Structure ($ Millions where Applicable)
Company Name Rating
Cash & Cash
Equivalents
DBRS
Adjusted
Total Debt
DBRS
Adjusted
Total Equity
Adjusted
Gross Debt
in Capital
Structure
DBRS
Adjusted
Total Capital
LightStream Resources Ltd. - 0 2,080 1,934 51.8% 4,014
Stone Energy Corp. - 203 1,035 986 51.2% 2,021
Rosetta Resources Inc. - 55 1,675 1,385 54.7% 3,060
PEYTO Exploration & Development Corp. - 0 773 1,345 36.5% 2,117
Legacy Oil & Gas Inc. - 13 788 1,536 33.9% 2,325
Northern Oil & Gas Inc. - 8 649 613 51.4% 1,262
Gran Tierra Energy Inc. - 391 16 1,478 1.1% 1,494
Bankers Petroleum Ltd. - 51 109 596 15.4% 704
Whitecap Resources Inc. - 0 457 1,601 22.2% 2,058
TransGlobe Energy Corporation - 108 142 518 21.5% 660
Parex Resources Inc. - 40 76 500 13.2% 576
Trilogy Energy Corp. B 0 567 666 46.0% 1,233
Gulfport Energy Corporation - 170 302 2,165 12.3% 2,467
Advantage Oil & Gas Ltd. - 0 256 991 20.5% 1,247
Crew Energy Inc. B 0 461 986 31.9% 1,447
Grupa LOTOS S.A. - 111 2,209 3,019 42.2% 5,228
Birchcliff Energy Ltd. - 0 471 961 32.9% 1,432
Bonanza Creek Energy, Inc. - 131 523 672 43.8% 1,195
Long Run Exploration Ltd. - 0 457 616 42.6% 1,073
EPL Oil & Gas, Inc. - 4 724 644 52.9% 1,368
Kosmos Energy Ltd. - 528 821 1,085 43.1% 1,906
PDC Energy, Inc. - 147 667 968 40.8% 1,635
Ultra Petroleum Corp. - 8 2,552 (228) 109.8% 2,324
Kodiak Oil & Gas Corp. - 16 2,261 1,228 64.8% 3,489
PT Medco Energi Internasional Tbk - 374 1,191 914 56.6% 2,105
Laredo Petroleum Holdings, Inc. - 548 1,513 1,302 54.3% 2,815
Carrizo Oil & Gas, Inc. - 62 908 853 51.6% 1,761
Athabasca Oil Corporation B 150 559 3,353 14.3% 3,912
Resolute Energy Corporation - 1 728 531 57.8% 1,260
W&T Offshore - 20 1,202 547 68.7% 1,749
YPF S.A. - 388 5,015 7,775 39.2% 12,789
Pakistan Petroleum Limited - 33 3 1,707 0.2% 1,711
Raging River Exploration Inc. - 0 66 405 14.0% 471
Freehold Royalties Ltd. - 0 49 293 14.3% 342
Mari Petroleum Company Limited - 70 22 164 12.1% 186
BlackPearl Resources Inc. - 69 9 628 1.4% 636
Bonterra Energy Corp. - 0 203 678 23.0% 881
Oil & Gas Development Company Limited - 0 0 3,796 0.0% 3,796
Surge Energy Inc. - 0 373 922 28.8% 1,295
Bellatrix Exploration Ltd. - 0 348 934 27.2% 1,282
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
47
Balance Sheet and Capital Structure ($ Millions where Applicable)
Company Name Rating
Cash & Cash
Equivalents
DBRS
Adjusted
Total Debt
DBRS
Adjusted
Total Equity
Adjusted
Gross Debt
in Capital
Structure
DBRS
Adjusted
Total Capital
Longview Oil Corp. - 0 124 241 34.0% 365
Twin Butte Energy LTD. - 0 349 473 42.5% 823
Vaalco Energy, Inc. - 81 0 245 0.0% 245
Approach Resources Inc. - 4 254 716 26.2% 970
Painted Pony Petroleum Ltd. - 0 39 559 6.6% 598
Cequence Energy Ltd. - 0 90 437 17.1% 528
Chinook Energy Inc. - 16 88 338 20.7% 426
Renegade Petroleum Ltd. - 0 277 450 38.1% 727
LINN Energy, LLC - 68 9,466 5,591 62.9% 15,057
Exco Resources, Inc. - 95 1,548 405 79.3% 1,953
Bill Barrett Corporation - 58 1,075 995 51.9% 2,070
Halcn Resources Corporation - 0 3,586 1,381 72.2% 4,967
Penn Virginia Corporation - 10 1,276 808 61.2% 2,085
NuVista Energy Ltd. - 0 109 705 13.4% 814
Comstock Resources Inc. - 2 961 946 50.4% 1,907
WPX Energy, Inc. - 58 2,387 4,233 36.1% 6,620
RMP Energy Inc. - 0 141 318 30.7% 459
Warren Resources, Inc. - 2 117 235 33.3% 352
Eagle Energy Trust - 0 90 243 27.1% 334
Zargon Oil & Gas Ltd. - 0 123 170 42.0% 292
Rock Energy Inc. - 0 18 100 15.1% 118
Gastar Exploration Ltd. - 27 318 207 60.6% 525
Parallel Energy Trust - 0 234 294 44.3% 529
Delphi Energy Corp. - 3 137 235 36.9% 372
Arcan Resources Ltd. - 0 302 219 57.9% 521
Forest Oil Corporation - 48 936 35 96.4% 971
Atlantic Petroleum P/F - 32 79 110 41.8% 189
Connacher Oil and Gas Limited - 20 1,056 160 86.9% 1,216
TORC Oil & Gas Ltd. - 0 101 927 9.8% 1,028
Hellenic Petroleum S.A. - 65 3,484 2,151 61.8% 5,635
Pinecrest Energy Inc. - 0 119 165 41.8% 284
Goodrich Petroleum Corporation - 1 508 328 60.8% 837
Questerre Energy Corporation - 42 2 244 0.8% 246
Pan Orient Energy Corp. - 36 4 248 1.8% 252
Paramount Resources Ltd. - 16 1,119 1,065 51.2% 2,184
ShaMaran Petroleum Corp. - 122 148 327 31.1% 475
Africa Oil Corp. - 434 2 930 0.3% 932
Strategic Oil & Gas Ltd. - 38 75 176 29.9% 251
Perpetual Energy Inc. - 0 389 82 82.6% 471
Noreco SA - 83 579 292 66.5% 871
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Balance Sheet and Capital Structure ($ Millions where Applicable)
Company Name Rating
Cash & Cash
Equivalents
DBRS
Adjusted
Total Debt
DBRS
Adjusted
Total Equity
Adjusted
Gross Debt
in Capital
Structure
DBRS
Adjusted
Total Capital
Magnum Hunter Resources Corporation - 64 901 648 58.2% 1,549
Canacol Energy Ltd. - 36 166 277 37.5% 443
Isramco, Inc. - 3 113 17 86.8% 130
Argent Energy Trust - 1 230 428 35.0% 658
Quicksilver Resources Inc. - 167 2,010 (1,075) 215.1% 934
Pine Cliff Energy Ltd. - 9 0 134 0.0% 134
Sunshine OilSands Ltd. - 13 17 915 1.9% 932
Antrim Energy Inc. - 1 1 20 6.6% 22
Southern Pacifc Resources Corp. CCC 59 661 378 63.6% 1,039
HKN, Inc. - 12 1 58 1.9% 59
Anderson Energy Ltd. - 12 92 29 76.2% 121
Niko Resources Ltd. - 82 375 264 58.7% 639
1. 2014 fgures refect YE December 31, 2013
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Q1 2014 CASH FLOWS
Q1 2014 Summary
The majority of issuers included in the study generated negative free cash fow in Q1 2014. This was
primarily due to high capex levels intended to ramp up production and high dividend payouts. However,
the size of the free cash fow defcits declined modestly as cash fows from operations increased and
capex and dividends decreased slightly. A number of companies are focusing on a free-cash fow neutral
target for their capital expenditure programs.
2014 Outlook
DBRS expects the current trends in the sector to continue through 2014, albeit with slightly lower capex
levels. As a result, DBRS expects the negative free cash fow trend to continue in the sector.
Key Cash Flow Items ($ Millions)
Company Name Rating
Cash Flow
from
Operations
Total
Dividends
Paid
Capital
Expenditure
Gross Free
Cash Flow
DBRS
Adjusted
Total Capital
Exxon Mobil Corporation - 50,374 (11,303) 33,503 5,568 218,604
Imperial Oil Limited AA (high) 4,473 (415) 6,158 (2,100) 27,708
Chevron Corporation AA 34,986 (7,634) 38,337 (10,985) 179,652
Royal Dutch Shell plc - 39,036 (7,048) 39,680 (7,692) 228,859
Total S.A. and Subsidiaries - 25,372 (7,203) 28,707 (10,538) 162,248
Statoil ASA - 22,200 (3,556) 16,340 2,304 115,597
CNOOC Limited
1
- 22,769 (3,290) 14,105 5,374 81,649
PetroChina Company Ltd. - 51,516 (10,176) 50,839 (9,499) 309,931
Sinopec Corp. - 23,605 (4,040) 21,137 (1,572) 1,061,608
BP p.l.c. A 22,712 (5,246) 24,682 (7,216) 183,449
Eni S.p.A. - 34,974 (5,636) 16,665 12,673 120,787
Occidental Petroleum Corporation A 12,719 (2,067) 9,236 1,416 51,092
ConocoPhillips A 17,373 (3,374) 16,041 (2,042) 78,439
Inpex Corporation - 8,040 (392) 4,258 3,484 34,745
Suncor Energy Inc. A (low) 10,006 (1,236) 6,782 1,988 55,332
Apache Corporation - 9,699 (353) 11,161 (1,815) 46,266
Husky Energy Inc. A (low) 5,327 (1,185) 5,145 (1,003) 26,533
Marathon Oil Corporation - 5,282 (521) 4,496 265 26,535
OMV Aktiengesellschaft - 4,557 (805) 3,674 78 28,412
Cenovus Energy Inc. A (low) 3,414 (750) 3,180 (516) 16,388
EOG Resources, Inc. - 7,670 (205) 7,267 198 22,663
Canadian Natural Resources Limited BBB (high) 7,648 (625) 7,192 (169) 37,783
BG Group plc - 7,895 (923) 10,164 (3,192) 54,820
Devon Energy Corporation BBB (high) 5,943 (357) 6,415 (829) 40,804
Hess Corporation - 5,814 (279) 5,768 (233) 34,648
Talisman Energy Inc. BBB (high) 1,544 (285) 2,341 (1,082) 14,217
OAO Gazprom
1
- 59,534 (4,308) 43,858 11,368 347,789
OAO Lukoil - 16,778 (2,500) 14,761 (483) 93,471
Rosneft - 29,127 (2,671) 17,448 9,008 160,645
Petrobras - 29,146 (2,656) 44,683 (18,193) 381,479
Murphy Oil Corporation BBB 3,024 (232) 3,629 (836) 13,310
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Key Cash Flow Items ($ Millions)
Company Name Rating
Cash Flow
from
Operations
Total
Dividends
Paid
Capital
Expenditure
Gross Free
Cash Flow
DBRS
Adjusted
Total Capital
Canadian Oil Sands Limited BBB 1,431 (678) 1,291 (538) 6,424
Anadarko Petroleum Corporation BBB 7,889 (320) 8,512 (943) 40,270
Noble Energy Inc. - 3,271 (204) 4,299 (1,232) 14,642
Encana Corporation BBB 3,000 (305) 2,508 187 11,844
PGNiG S.A. - 1,986 (243) 1,030 713 11,810
Energen Corporation - 895 (42) 1,180 (328) 4,906
Repsol, S.A. - 5,978 (1,288) 4,572 118 55,636
Ecopetrol S.A. - 11,677 (3,191) 8,513 (27) 40,304
Southwestern Energy Co. - 2,174 0 2,303 (129) 5,628
Continental Resources, Inc. - 2,729 0 3,921 (1,192) 9,269
Pioneer Natural Resources Company - 2,213 (11) 2,835 (633) 9,582
Newfeld Exploration Co. - 1,417 0 2,181 (764) 6,962
Crescent Point Energy Corporation - 2,031 (422) 1,747 (139) 10,554
MOL Group - 2,185 (169) 1,708 308 14,403
Concho Resources Inc. - 1,598 0 2,016 (418) 7,653
Pacifc Rubiales Energy Corp. - 1,881 (212) 2,194 (526) 11,436
Cimarex Energy Co. - 1,505 (48) 1,654 (197) 5,223
Denbury Resources Inc. - 1,245 (22) 1,163 60 8,767
The Delek Group Ltd. - 114 (89) 336 (311) 9,808
Chesapeake Energy Corporation - 5,292 (615) 6,001 (1,324) 32,004
JSOC Bashneft - 2,469 (590) 1,087 792 10,993
Whiting Petroleum Corporation - 1,724 (0) 2,891 (1,168) 6,633
ARC Resources Ltd. - 915 (240) 890 (215) 4,450
Vermilion Energy Inc. BB (low) 696 (247) 559 (109) 2,890
Cabot Oil & Gas Corp. - 1,072 (25) 1,195 (148) 3,526
Unit Corporation - 654 0 708 (55) 2,925
QEP Resources Inc. - 1,332 (24) 1,562 (253) 7,878
Baytex Energy Corp. - 699 (241) 558 (100) 2,049
Penn West Petroleum Ltd. - 1,005 (313) 594 98 10,173
SM Energy Company - 1,367 (7) 1,524 (164) 4,350
Range Resources Corporation - 844 (26) 1,308 (490) 5,804
Bonavista Energy Corporation - 537 (97) 511 (71) 3,254
Galp Energia SGPS, SA
1
- 1,026 (295) 1,006 (275) 12,885
MEG Energy Corporation - 362 0 1,273 (911) 8,943
Tourmaline Oil Corp. - 656 0 1,366 (710) 4,298
Enerplus Corporation - 785 (169) 732 (116) 3,095
Energy XXI (Bermuda) Limited - 635 (47) 827 (239) 3,380
Oasis Petroleum Inc. - 405 0 1,116 (712) 3,797
Pengrowth Energy Corporation - 557 (249) 770 (463) 5,234
SandRidge Energy, Inc. - 767 (262) 1,406 (901) 6,212
LightStream Resources Ltd. - 661 (125) 651 (115) 4,014
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Key Cash Flow Items ($ Millions)
Company Name Rating
Cash Flow
from
Operations
Total
Dividends
Paid
Capital
Expenditure
Gross Free
Cash Flow
DBRS
Adjusted
Total Capital
Stone Energy Corp. - 522 0 797 (276) 2,021
Rosetta Resources Inc. - 565 0 964 (399) 3,060
PEYTO Exploration & Development Corp. - 472 (137) 588 (253) 2,117
Legacy Oil & Gas Inc. - 296 0 354 (58) 2,325
Northern Oil & Gas Inc. - 235 0 403 (168) 1,262
Gran Tierra Energy Inc. - 306 0 264 42 1,494
Bankers Petroleum Ltd. - 292 0 247 46 704
Whitecap Resources Inc. - 315 (107) 246 (39) 2,058
TransGlobe Energy Corporation - 128 0 66 62 660
Parex Resources Inc. - 251 0 273 (22) 576
Trilogy Energy Corp. B 281 (51) 400 (170) 1,233
Gulfport Energy Corporation - 276 0 911 (635) 2,467
Advantage Oil & Gas Ltd. - 170 (15) 176 (22) 1,247
Crew Energy Inc. B 188 0 221 (33) 1,447
Grupa LOTOS S.A. - 284 0 400 (116) 5,228
Birchcliff Energy Ltd. - 213 (7) 294 (88) 1,432
Bonanza Creek Energy, Inc. - 302 0 484 (182) 1,195
Long Run Exploration Ltd. - 244 (8) 275 (39) 1,073
EPL Oil & Gas, Inc. - 356 0 2 354 1,368
Kosmos Energy Ltd. - 405 0 330 75 1,906
PDC Energy, Inc. - 225 0 469 (244) 1,635
Ultra Petroleum Corp. - 587 0 395 192 2,324
Kodiak Oil & Gas Corp. - 635 0 960 (325) 3,489
PT Medco Energi Internasional Tbk - 269 (31) 240 (1) 2,105
Laredo Petroleum Holdings, Inc. - 360 0 756 (395) 2,815
Carrizo Oil & Gas, Inc. - 385 0 772 (386) 1,761
Athabasca Oil Corporation B 6 0 721 (715) 3,912
Resolute Energy Corporation - 134 0 271 (88) 1,260
W&T Offshore - 545 (60) 511 (26) 1,749
YPF S.A. - 5,007 (67) 4,739 201 12,789
Pakistan Petroleum Limited - 957 (180) 244 533 1,711
Raging River Exploration Inc. - 143 0 203 (59) 471
Freehold Royalties Ltd. - 126 (82) 25 19 342
Mari Petroleum Company Limited - 39 (6) 34 (1) 186
BlackPearl Resources Inc. - 98 0 123 (26) 636
Bonterra Energy Corp. - 193 (106) 127 (40) 881
Oil & Gas Development Company
Limited
- 1,027 (330) 402 295 3,796
Surge Energy Inc. - 142 (42) 144 (44) 1,295
Bellatrix Exploration Ltd. - 164 0 368 (204) 1,282
Longview Oil Corp. - 64 (27) 45 (7) 365
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Key Cash Flow Items ($ Millions)
Company Name Rating
Cash Flow
from
Operations
Total
Dividends
Paid
Capital
Expenditure
Gross Free
Cash Flow
DBRS
Adjusted
Total Capital
Twin Butte Energy LTD. - 152 (49) 121 (18) 823
Vaalco Energy, Inc. - 78 0 73 5 245
Approach Resources Inc. - 129 0 331 (202) 970
Painted Pony Petroleum Ltd. - 44 0 112 (68) 598
Cequence Energy Ltd. - 63 0 133 (70) 528
Chinook Energy Inc. - 90 0 106 (16) 426
Renegade Petroleum Ltd. - 124 (66) 64 (6) 727
LINN Energy, LLC - 1,316 (751) 1,314 (749) 15,057
Exco Resources, Inc. - 343 (46) 349 (52) 1,953
Bill Barrett Corporation - 272 0 461 (189) 2,070
Halcn Resources Corporation - 593 0 2,552 (1,959) 4,967
Penn Virginia Corporation - 242 (7) 578 (343) 2,085
NuVista Energy Ltd. - 285 0 282 3 814
Comstock Resources Inc. - 261 (24) 646 (408) 1,907
WPX Energy, Inc. - 758 0 1,235 (477) 6,620
RMP Energy Inc. - 94 0 191 (98) 459
Warren Resources, Inc. - 82 0 79 3 352
Eagle Energy Trust - 43 (33) 38 (28) 334
Zargon Oil & Gas Ltd. - 61 (21) 74 (35) 292
Rock Energy Inc. - 42 0 54 (12) 118
Gastar Exploration Ltd. - 51 (12) 88 (48) 525
Parallel Energy Trust - 43 (28) 9 5 529
Delphi Energy Corp. - 50 0 84 (34) 372
Arcan Resources Ltd. - 40 0 38 2 521
Forest Oil Corporation - 338 0 679 (341) 971
Atlantic Petroleum P/F - 72 0 (4) 76 189
Connacher Oil and Gas Limited - 86 0 92 (6) 1,216
TORC Oil & Gas Ltd. - 120 (17) 151 (48) 1,028
Hellenic Petroleum S.A. - (131) (62) 160 (352) 5,635
Pinecrest Energy Inc. - 41 0 32 8 284
Goodrich Petroleum Corporation - 87 (25) 257 (194) 837
Questerre Energy Corporation - 12 0 29 (17) 246
Pan Orient Energy Corp. - 24 (43) 55 (73) 252
Paramount Resources Ltd. - 63 0 737 (673) 2,184
ShaMaran Petroleum Corp. - (3) 0 51 (54) 475
Africa Oil Corp. - (12) 0 283 (295) 932
Strategic Oil & Gas Ltd. - 16 0 51 (35) 251
Perpetual Energy Inc. - 61 0 88 (27) 471
Noreco SA - 148 0 38 110 871
Magnum Hunter Resources Corporation - 36 (42) 526 (532) 1,549
Canacol Energy Ltd. - 63 0 95 (32) 443
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Criteria For the Non-Investment Grade World
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Key Cash Flow Items ($ Millions)
Company Name Rating
Cash Flow
from
Operations
Total
Dividends
Paid
Capital
Expenditure
Gross Free
Cash Flow
DBRS
Adjusted
Total Capital
Isramco, Inc. - 34 0 23 11 130
Argent Energy Trust - 53 (16) 114 (76) 658
Quicksilver Resources Inc. - (42) 0 113 (154) 934
Pine Cliff Energy Ltd. - 21 0 11 11 134
Sunshine OilSands Ltd. - (20) 0 230 (249) 932
Antrim Energy Inc. - (8) 0 1 (9) 22
Southern Pacifc Resources Corp. CCC (13) 0 40 (54) 1,039
HKN, Inc. - (1) 0 8 (9) 59
Anderson Energy Ltd. - 9 0 25 (15) 121
Niko Resources Ltd. - (84) (13) 25 (121) 639
1. 2014 fgures refect YE December 31, 2013
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July 2014
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Aggregate Totals and Averages
Ratio/Calculation ($ millions) 2014* 2013 2012 2011 2010
Aggregate Totals
1
Adjusted Total Debt 1,254,451 1,271,535 1,099,725 925,412 863,222
DBRS Adjusted Net Debt 1,254,451 1,271,535 1,099,725 973,033 908,557
Net Revenue 4,084,565 4,143,486 4,084,968 3,785,855 3,005,933
EBITDA 797,252 772,674 792,464 822,165 682,860
Depreciation & Amortization 313,416 310,558 282,737 236,875 218,442
EBIT 495,668 482,968 526,623 598,559 471,311
Net Income Before Non-recurring items 319,912 316,327 320,534 355,137 282,431
Cash Flow from Ops 679,529 659,627 643,028 672,652 562,332
Total Dividends Paid (104,911) (107,675) (105,604) (98,783) (87,934)
Capital Expenditure 626,194 629,382 587,465 533,617 445,146
Free Cash Flow (Before Working Capital Changes) (54,476) (76,312) (54,141) 41,001 29,181
Cash and Cash Equivalents 270,715 240,729 246,894 210,921 212,420
Gross Interest Expense 53,484 51,122 39,565 35,396 31,490
DBRS Total Adjusted Equity 2,649,244 2,636,749 2,560,516 2,361,207 2,147,007
Capital Structure 3,903,695 3,908,285 3,660,241 3,286,619 3,010,230
Aggregate Averages
Adjusted Gross Debt in Capital Structure 32.1% 32.5% 30.0% 28.2% 28.7%
EBITDA Gross Interest Coverage 14.91 15.11 20.03 23.23 21.68
EBIT Gross Interest Coverage 9.27 9.45 13.31 16.91 14.97
Adjusted Total Debt-to-Cash Flow 1.85 1.93 1.71 1.38 1.54
Adjusted Total Debt-to-EBITDA 1.57 1.65 1.39 1.13 1.26
Cash Flow Minus Dividends Over CapEx 0.92 0.88 0.91 1.08 1.07
Return on Equity 0.12 0.12 0.13 0.15 0.13
*Last twelve months ending March 31, 2014.
1. Due to consolidation with Exxon Mobil Corp. results, Imperial Oil Limited is excluded from the aggregate table.
The signifcant growth capex in aggregate over the past few years have led to an increase in debt
levels since 2010. However, the fnancial profles for most operators remained relatively strong in Q1
2014, due to continued favourable crude oil and oil-linked natural gas/liquids prices.
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Criteria For the Non-Investment Grade World
July 2014
55
FISCAL YEAR ENDS
Company Fiscal Year End Currency Exchange Rate
Advantage Oil & Gas Ltd. December 31 $CAD 1.0000
Africa Oil Corp. December 31 $US 1.0000
Anadarko Petroleum Corporation December 31 $US 1.0000
Anderson Energy Ltd. December 31 $CAD 1.0000
Antrim Energy Inc. December 31 $US 1.0000
Apache Corporation December 31 $US 1.0000
Approach Resources Inc. December 31 $US 1.0000
ARC Resources Ltd. December 31 $CAD 1.0000
Arcan Resources Ltd. December 31 $CAD 1.0000
Argent Energy Trust December 31 $CAD 1.0000
Athabasca Oil Corporation December 31 $CAD 1.0000
Atlantic Petroleum P/F December 31 DKK 0.1845
Bankers Petroleum Ltd. December 31 $US 1.0000
Baytex Energy Corp. December 31 $CAD 1.0000
Bellatrix Exploration Ltd. December 31 $CAD 1.0000
BG Group plc December 31 $US 1.0000
Bill Barrett Corporation December 31 $US 1.0000
Birchcliff Energy Ltd. December 31 $CAD 1.0000
BlackPearl Resources Inc. December 31 $CAD 1.0000
Bonanza Creek Energy, Inc. December 31 $US 1.0000
Bonavista Energy Corporation December 31 $CAD 1.0000
Bonterra Energy Corp. December 31 $CAD 1.0000
BP p.l.c. December 31 $US 1.0000
Cabot Oil & Gas Corp. December 31 $US 1.0000
Canacol Energy Ltd. June 30 $US 1.0000
Canadian Natural Resources Limited December 31 $CAD 1.0000
Canadian Oil Sands Limited December 31 $CAD 1.0000
Carrizo Oil & Gas, Inc. December 31 $US 1.0000
Cenovus Energy Inc. December 31 $CAD 1.0000
Cequence Energy Ltd. December 31 $CAD 1.0000
Chesapeake Energy Corporation December 31 $US 1.0000
Chevron Corporation December 31 $US 1.0000
Chinook Energy Inc. December 31 $CAD 1.0000
Cimarex Energy Co. December 31 $US 1.0000
CNOOC Limited December 31 CN 0.1634
Comstock Resources Inc. December 31 $US 1.0000
Concho Resources Inc. December 31 $US 1.0000
Connacher Oil and Gas Limited December 31 $CAD 1.0000
ConocoPhillips December 31 $US 1.0000
Continental Resources, Inc. December 31 $US 1.0000
Crescent Point Energy Corporation December 31 $CAD 1.0000
Crew Energy Inc. December 31 $CAD 1.0000
Delphi Energy Corp. December 31 $CAD 1.0000
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Criteria For the Non-Investment Grade World
July 2014
56
Company Fiscal Year End Currency Exchange Rate
Denbury Resources Inc. December 31 $US 1.0000
Devon Energy Corporation December 31 $US 1.0000
Eagle Energy Trust December 31 $CAD 1.0000
Ecopetrol S.A. December 31 COP 0.0005
Encana Corporation December 31 $US 1.0000
Energen Corporation December 31 $US 1.0000
Energy XXI (Bermuda) Limited June 30 $US 1.0000
Enerplus Corporation December 31 $CAD 1.0000
Eni S.p.A. December 31 EUR 1.3774
EOG Resources, Inc. December 31 $US 1.0000
EPL Oil & Gas, Inc. December 31 $US 1.0000
Exco Resources, Inc. December 31 $US 1.0000
Exxon Mobil Corporation December 31 $US 1.0000
Forest Oil Corporation December 31 $US 1.0000
Freehold Royalties Ltd. December 31 $CAD 1.0000
Galp Energia SGPS, SA December 31 EUR 1.3774
Gastar Exploration Ltd. December 31 $US 1.0000
Goodrich Petroleum Corporation December 31 $US 1.0000
Gran Tierra Energy Inc. December 31 $US 1.0000
Grupa LOTOS S.A. December 31 PLN 0.3304
Gulfport Energy Corporation December 31 $US 1.0000
Halcn Resources Corporation December 31 $US 1.0000
Hellenic Petroleum S.A. December 31 EUR 1.3774
Hess Corporation December 31 $US 1.0000
HKN, Inc. December 31 $US 1.0000
Husky Energy Inc. December 31 $CAD 1.0000
Imperial Oil Limited December 31 $CAD 1.0000
Inpex Corporation March 31 JPY 0.0095
Isramco, Inc. December 31 $US 1.0000
JSOC Bashneft December 31 RUB 0.0286
Kodiak Oil & Gas Corp. December 31 $US 1.0000
Kosmos Energy Ltd. December 31 $US 1.0000
Laredo Petroleum, Inc. December 31 $US 1.0000
Legacy Oil & Gas Inc. December 31 $CAD 1.0000
LightStream Resources Ltd. December 31 $CAD 1.0000
LINN Energy, LLC December 31 $US 1.0000
Long Run Exploration Ltd. December 31 $CAD 1.0000
Longview Oil Corp. December 31 $CAD 1.0000
Magnum Hunter Resources Corporation December 31 $US 1.0000
Marathon Oil Corporation December 31 $US 1.0000
Mari Petroleum Company Limited June 30 INR 0.0102
MEG Energy Corporation December 31 $CAD 1.0000
MOL Group December 31 HUF 0.0045
Murphy Oil Corporation December 31 $US 1.0000
Newfeld Exploration Co. December 31 $US 1.0000
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Criteria For the Non-Investment Grade World
July 2014
57
Company Fiscal Year End Currency Exchange Rate
Niko Resources Ltd. December 31 $US 1.0000
Noble Energy Inc. December 31 $US 1.0000
Noreco SA December 31 NOK 0.1669
Northern Oil & Gas Inc. December 31 $US 1.0000
NuVista Energy Ltd. December 31 $CAD 1.0000
OAO Gazprom December 31 RUB 0.0286
OAO Lukoil December 31 $US 1.0000
Oasis Petroleum Inc. December 31 $US 1.0000
Occidental Petroleum Corporation December 31 $US 1.0000
Oil & Gas Development Company Limited June 30 PKR 0.0102
OMV Aktiengesellschaft December 31 EUR 1.3774
Pacifc Rubiales Energy Corp. December 31 $US 1.0000
Painted Pony Petroleum Ltd. December 31 $CAD 1.0000
Pakistan Petroleum Limited June 30 PKR 0.0102
Pan Orient Energy Corp. December 31 $CAD 1.0000
Parallel Energy Trust December 31 $CAD 1.0000
Paramount Resources Ltd. December 31 $CAD 1.0000
Parex Resources Inc. December 31 $US 1.0000
PDC Energy, Inc. December 31 $US 1.0000
Pengrowth Energy Corporation December 31 $CAD 1.0000
Penn Virginia Corporation December 31 $US 1.0000
Penn West Petroleum Ltd. December 31 $CAD 1.0000
Perpetual Energy Inc. December 31 $CAD 1.0000
Petrobras December 31 $US 1.0000
PetroChina Company Ltd. December 31 CN 0.1634
PEYTO Exploration & Development Corp. December 31 $CAD 1.0000
PGNiG S.A. December 31 PLN 0.3304
Pine Cliff Energy Ltd. December 31 $CAD 1.0000
Pinecrest Energy Inc. December 31 $CAD 1.0000
Pioneer Natural Resources Company December 31 $US 1.0000
PT Medco Energi Internasional Tbk December 31 $US 1.0000
QEP Resources Inc. December 31 $US 1.0000
Questerre Energy Corporation December 31 $CAD 1.0000
Quicksilver Resources Inc. December 31 $US 1.0000
Raging River Exploration Inc. December 31 $CAD 1.0000
Range Resources Corporation December 31 $US 1.0000
Renegade Petroleum Ltd. December 31 $CAD 1.0000
Repsol S.A. December 31 EUR 1.3774
Resolute Energy Corporation December 31 $US 1.0000
RMP Energy Inc. December 31 $CAD 1.0000
Rock Energy Inc. December 31 $US 1.0000
Rosetta Resources Inc. December 31 $US 1.0000
Rosneft December 31 RUB 0.0286
Royal Dutch Shell plc December 31 $US 1.0000
SandRidge Energy, Inc. December 31 $US 1.0000
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Criteria For the Non-Investment Grade World
July 2014
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Company Fiscal Year End Currency Exchange Rate
ShaMaran Petroleum Corp. December 31 $US 1.0000
Sinopec Corp. December 31 CN 0.1634
SM Energy Company December 31 $US 1.0000
Southern Pacifc Resources Corp. June 30 $CAD 1.0000
Southwestern Energy Co. December 31 $US 1.0000
Statoil ASA December 31 NOK 0.1669
Stone Energy Corp. December 31 $US 1.0000
Strategic Oil & Gas Ltd. December 31 $CAD 1.0000
Suncor Energy Inc. December 31 $CAD 1.0000
Sunshine OilSands Ltd. December 31 $CAD 1.0000
Surge Energy Inc. December 31 $CAD 1.0000
Talisman Energy Inc. December 31 $US 1.0000
The Delek Group Ltd. December 31 ILS 0.2867
TORC Oil & Gas Ltd. December 31 $CAD 1.0000
Total S.A. and Subsidiaries December 31 EUR 1.3774
Tourmaline Oil Corp. December 31 $US 1.0000
TransGlobe Energy Corporation December 31 $US 1.0000
Trilogy Energy Corp. December 31 $CAD 1.0000
Twin Butte Energy LTD. December 31 $CAD 1.0000
Ultra Petroleum Corp. December 31 $US 1.0000
Unit Corporation December 31 $US 1.0000
Vaalco Energy, Inc. December 31 $US 1.0000
Vermilion Energy Inc. December 31 $CAD 1.0000
W&T Offshore December 31 $US 1.0000
Warren Resources, Inc. December 31 $US 1.0000
Whitecap Resources Inc. December 31 $CAD 1.0000
Whiting Petroleum Corporation December 31 $US 1.0000
WPX Energy, Inc. December 31 $US 1.0000
YPF S.A. December 31 ARS 0.1248
Zargon Oil & Gas Ltd. December 31 $CAD 1.0000
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Criteria For the Non-Investment Grade World
July 2014
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2014* 2013 2012 2014* 2013 2012
271,322 242,139 244,194 679,529 659,627 643,028
1,254,451 1,271,535 1,099,725 (104,911) (107,675) (105,604)
2,649,244 2,636,749 2,560,516 (626,194) (629,382) (587,465)
(54,476) (76,312) (54,141)
2014*
EBITDA 797,252
EBIT 494,623
319,912
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
32% 33% 30% 28% 29% 9.27 9.45 13.31 16.91 14.97
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.85 1.93 1.71 1.38 1.54 1.57 1.65 1.39 1.13 1.26
1. Due to consolidation with Exxon Mobil Corp. results, Imperial Oil Limited is excluded from the aggregate table.
Aggregate Totals and Averages
2013
772,674
482,968
316,327
2012
792,464
526,623
320,534 Net Income Before Non-Recurring Items
Total Dividends Paid
Capital Expenditure
Gross Free Cash Flow
Cash & Cash Equivalents Cash Flow from Ops
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
(USD, Millions)
DBRS Adjusted Total Equity
INCOME STATEMENT
1
KEY METRICS
BALANCE SHEET
1
OPERATING CASH FLOW
1
(USD, Millions) (USD, Millions)
0%
5%
10%
15%
20%
25%
30%
35%
2014* 2013 2012 2011 2010
0.0
5.0
10.0
15.0
20.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
60
Company List
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
61
Advantage Oil & Gas Ltd.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
0 0 0 170 161 122
256 351 364 (15) 0 0
991 1,287 1,288 (176) (186) (202)
0 0 0 (22) (25) (80)
2014* 2012
EBITDA 190 117
EBIT 75 (15)
2 (51)
Adjusted Debt in Capital Structure EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
21% 27% 27% 25% 29% 6.03 3.82 -1.21 1.97 1.07
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.51 3.07 4.32 2.11 2.96 1.35 2.73 3.85 2.34 3.62
Cash & Cash Equivalents Cash Flow from Ops
Advantage Oil & Gas Ltd. (the Company) is a Canadian oil and gas company based in Calgary, Alberta. The Company owns and
operates properties located in Alberta, British Columbia and Saskatchewan.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
KEY RATIOS
DBRS Adjusted Total Debt
Preferred Shares
(CAD, Millions)
Net Income Before Non-Recurring Items
2013
162
51
14
0%
5%
10%
15%
20%
25%
30%
35%
2014* 2013 2012 2011 2010 (2.0)
0.0
2.0
4.0
6.0
8.0
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
62
Africa Oil Corp.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
434 493 272 (12) (11) (8)
2 2 3 0 0 0
930 930 520 (283) (230) (134)
0 0 0 (295) (241) (142)
2014* 2013 2012
EBITDA (9) (9) (10)
EBIT (9) (9) (10)
(43) (32) (18)
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0% 0% 1% 0% 33% 9.33 N/A N/A N/A -38.46
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
-0.21 -0.22 -0.37 -0.20 -11.12 -0.29 -0.29 -0.28 -0.21 -11.96
Cash & Cash Equivalents Cash Flow from Ops
Africa Oil Corp. is a Canadian oil and gas company with assets in Kenya and Ethiopia as well as Puntland (Somalia).
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
0%
5%
10%
15%
20%
25%
30%
35%
2014* 2013 2012 2011 2010
(50.0)
(40.0)
(30.0)
(20.0)
(10.0)
0.0
10.0
20.0
2014* 2013 2012 2011 2010
(12.0)
(10.0)
(8.0)
(6.0)
(4.0)
(2.0)
0.0
2014* 2013 2012 2011 2010
(14.0)
(12.0)
(10.0)
(8.0)
(6.0)
(4.0)
(2.0)
0.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
63
Anadarko Petroleum Corporation
RATING: BBB
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
5,924 3,698 2,471 7889 7,906 7,127
19,353 19,349 18,171 (320) (274) (181)
20,917 23,650 21,882 (8,512) (7,721) (7,242)
0 0 0 (943) (89) (296)
2014* 2013
EBITDA 10,498 8,837
EBIT 6,469 4,910
3,592 2,615
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
48% 45% 45% 51% 45% 6.76 5.17 4.25 4.52 3.25
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
2.45 2.45 2.55 2.71 3.24 1.84 2.19 2.26 2.34 2.65
Cash & Cash Equivalents Cash Flow from Ops
Anadarko Petroleum Corporation (Anadarko) is a large, diversified oil and gas producer. The majority of Anadarkos assets are
located in the U.S., representing about 90% of total proved reserves.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions) 2012
8,054
4,090
2,118 Net Income Before Non-Recurring Items
0%
10%
20%
30%
40%
50%
60%
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
64
Anderson Energy Ltd.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
12 25 0 9 10 29
92 92 140 0 0 0
29 28 133 (25) (16) (35)
0 0 0 (15) (6) (6)
2014* 2013
EBITDA 23 24
EBIT (2) (4)
(35) (63)
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
76% 77% 51% 53% 37% -0.16 -0.39 -0.79 1.13 -2.04
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
9.93 9.31 4.82 3.50 3.07 3.96 3.80 3.99 2.94 2.75
Cash & Cash Equivalents Cash Flow from Ops
Anderson Energy Ltd. is an oil and gas development company. Its principal property is in central Alberta around the Sylvan Lake
and Pembina fields.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(CAD, Millions) 2012
35
(9)
(8) Net Income Before Non-Recurring Items
0%
20%
40%
60%
80%
100%
2014* 2013 2012 2011 2010
(2.5)
(2.0)
(1.5)
(1.0)
(0.5)
0.0
0.5
1.0
1.5
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
65
Antrim Energy Inc.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
1 1 2 (8) (10) (15)
1 1 2 0 0 0
20 29 67 (1) (1) (9)
0 0 0 (9) (11) (24)
2014* 2013 2012
EBITDA (6) (8) (13)
EBIT (6) (8) (14)
(3) (8) (6)
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
7% 5% 3% 1% 1% -23.60 -8.34 N/A -31.79 -27.49
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
-0.18 -0.14 -0.14 -0.35 -0.31 -0.23 -0.18 -0.16 -0.25 -0.34
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Antrim Energy Inc. is a Canadian-based international oil and gas exploration and production company with assets offshore in the
United Kingdom North Sea and Ireland.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0%
1%
2%
3%
4%
5%
6%
7%
2014* 2013 2012 2011 2010
(35.0)
(30.0)
(25.0)
(20.0)
(15.0)
(10.0)
(5.0)
0.0
2014* 2013 2012 2011 2010
(0.4)
(0.4)
(0.3)
(0.3)
(0.2)
(0.2)
(0.1)
(0.1)
0.0
2014* 2013 2012 2011 2010
(0.4)
(0.4)
(0.3)
(0.3)
(0.2)
(0.2)
(0.1)
(0.1)
0.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
66
Apache Corporation
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
1,643 1,906 160 9,699 9,754 10,245
11,089 11,141 13,893 (353) (360) (332)
35,177 35,393 31,331 (11,161) (11,220) (9,531)
0 0 1,227 (1,815) (1,826) 382
2014* 2013 2012
EBITDA 11,509 11,471 12,051
EBIT 6,015 6,281 6,870
2,877 2,912 3,449
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
24% 24% 31% 23% 27% 10.96 10.71 13.95 19.53 16.87
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.14 1.14 1.36 0.84 1.20 0.96 0.95 1.13 0.69 0.99
Cash & Cash Equivalents Cash Flow from Ops
Apache Corporation is a Texas-based independent oil and gas company with exploration and production interests in the Gulf of
Mexico, Gulf Coast Onshore in the United States, Western Canada and the United Kingdom.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
0%
5%
10%
15%
20%
25%
30%
35%
2014* 2013 2012 2011 2010
0.0
5.0
10.0
15.0
20.0
25.0
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
67
Approach Resources Inc.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
4 59 1 129 114 78
254 254 110 0 0 0
716 710 633 (331) (297) (297)
0 0 0 (202) (183) (219)
2014* 2013
EBITDA 140 121
EBIT 56 44
(9) (14)
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
26% 26% 15% 9% 1% 3.11 3.10 2.28 8.62 4.48
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.97 2.22 1.40 0.62 0.08 1.82 2.11 1.54 0.76 0.10
Cash & Cash Equivalents Cash Flow from Ops
Approach Resources Inc. (the Company) is an independent energy company headquartered in Fort Worth, Texas. The Company
focuses on exploring for and developing oil and gas reserves in the West Texas Permian Basin.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions) 2012
71
11
3
0%
5%
10%
15%
20%
25%
30%
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
68
ARC Resources Ltd.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
10 4 196 915 835 709
1,081 993 876 (240) (243) (239)
3,369 3,396 3,397 (890) (874) (608)
0 0 0 (215) (283) (138)
2014* 2013 2012
EBITDA 1,037 891 718
EBIT 469 340 200
295 229 170
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
24% 23% 20% 21% 22% 10.61 8.28 4.69 9.51 6.09
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.18 1.19 1.23 1.02 1.27 1.04 1.10 1.20 1.03 1.35
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(CAD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
ARC Resources Limited is a Canadian conventional oil and gas company. It currently operates in Western Canada, holding
interests in petroleum and natural gas properties and assets.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
18%
19%
20%
21%
22%
23%
24%
25%
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
69
Arcan Resources Ltd.
RATING: NR
DESCRIPTION
OPERATING CASH FLOW
2014* 2013 2012 2014* 2013 2012
0 9 8 40 56 55
302 309 307 0 0 0
219 226 248 (38) (43) (182)
0 0 0 2 14 (127)
2014* 2013 2012
EBITDA 63 56 55
EBIT 27 19 11
(4) (7) (6)
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
58% 58% 55% 34% 11% 1.50 1.15 0.70 1.77 1.39
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
7.51 8.14 7.83 3.29 1.11 4.80 5.37 5.60 3.79 1.31
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(CAD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Arcan Resources Ltd. (the Company) is engaged in the exploration, development and production of petroleum and natural gas in
Western Canada. The Company's primary interest is in the light oil assets located in the Swan Hills area of Alberta.
KEY METRICS
BALANCE SHEET
(CAD, Millions) (CAD, Millions)
0%
10%
20%
30%
40%
50%
60%
70%
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
70
Argent Energy Trust
RATING: NR
DESCRIPTION
OPERATING CASH FLOW
2014* 2013 2012 2014* 2013 2012
1 1 2 53 65 7
230 228 36 (16) (20) (10)
428 405 422 (114) (106) (53)
0 0 0 (76) (62) (57)
(CAD, Millions) 2014* 2013 2012
EBITDA 48 47 8
EBIT (23) (14) (1)
Net Income Before Non-Recurring Items (113) (107) (5)
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
35% 36% 8% N/A N/A -2.797837 -2.5033 -5.055 N/A N/A
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
4.330338 4.322635 5.3156 0 0 4.772683 4.88616 4.7179 N/A N/A
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Argent Energy Trust owns, operates and manages oil and gas properties located primarily in South Texas and Oklahoma, with
drilling prospects focused in the Eagle Ford, Austin Chalk and Wilcox.
KEY METRICS
BALANCE SHEET
(CAD, Millions) (CAD, Millions)
0%
5%
10%
15%
20%
25%
30%
35%
40%
2014* 2013 2012 2011 2010
(6.0)
(5.0)
(4.0)
(3.0)
(2.0)
(1.0)
0.0
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
71
Athabasca Oil Corporation
RATING: B; Stable
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
150 323 963 6 (5) (28)
559 558 554 0 0 0
3,353 3,374 3,460 (721) (744) (1,080)
0 0 0 (715) (749) (1,109)
2014* 2013 2012
EBITDA 17 8 (36)
EBIT (124) (128) (61)
(116) (126) (112)
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
N/A -33% -338% -98% -45%
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
Cash & Cash Equivalents Cash Flow from Ops
Athabasca Oil Corporation is an Alberta-based company focused on the development of oil sands in the Athabasca region in
northeastern Alberta and light oil resources in northwestern Alberta.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(CAD, Millions)
(400%)
(350%)
(300%)
(250%)
(200%)
(150%)
(100%)
(50%)
(0 )
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
72
Atlantic Petroleum P/F
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
32 34 43 72 46 63
79 76 61 0 0 0
110 110 95 (4) (73) (37)
0 0 0 76 (27) 26
2014* 2013
EBITDA 62 19
EBIT 43 13
21 6
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
42% 41% 39% 45% 53% 52.995473 10.23307 9.4067 7.3517
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.095307 1.6477258 0.9576 1.2882 1.6494 1.2790624 1.9052766 0.8466 1.2471 1.5467
Cash & Cash Equivalents Cash Flow from Ops
Atlantic Petroleum P/F (the Company) is a full cycle exploration and production company. The Company's main focus is offshore
North West Europe. It has a total of 40 oil and gas licences in the UK, Faroe Islands, Ireland, Norway & the Netherlands, and
produces oil & gas from three fields in the United Kingdom North Sea.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions) 2012
72
47
16 Net Income Before Non-Recurring Items
0%
10%
20%
30%
40%
50%
60%
2014* 2013 2012 2011 2010
0.0
10.0
20.0
30.0
40.0
50.0
60.0
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
73
Bankers Petroleum Ltd.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
51 25 34 292 279 174
109 109 106 0 0 0
596 565 483 (247) (234) (223)
0 0 0 46 45 (49)
2014* 2013 2012
EBITDA 314 284 191
EBIT 211 184 125
67 63 34
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
15% 16% 18% 14% 9% 28.116786 27.059612 26.063 43.491 18.614
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0.371068 0.391956 0.6133 0.4477 0.473 0.34513 0.367865 0.5249 0.4248 0.4738
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Bankers Petroleum Ltd. (the Company) is a Canadian-based oil and gas exploration and production company focused on
developing oil and gas reserves in Albania. The Company operates and has the rights to develop the Patos-Marinza heavy oilfield
and has a 100% interest in the Kuova oilfield.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0%
5%
10%
15%
20%
2014* 2013 2012 2011 2010
0.0
10.0
20.0
30.0
40.0
50.0
2014* 2013 2012 2011 2010
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
2014* 2013 2012 2011 2010
0.0
0.1
0.2
0.3
0.4
0.5
0.6
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
74
Baytex Energy Corp.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
2 18 2 656 630 524
798 714 594 (241) (238) (215)
1,290 1,282 1,299 (558) (555) (425)
0 0 0 (144) (163) (116)
2014* 2013 2012
EBITDA 661 586 485
EBIT 322 257 187
202 171 103
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
37% 36% 31% 35% 31% 7.539397 6.255427 4.7201 8.3536 3.9125
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.0853 1.134527 1.2148 1.1252 1.1028 1.148954 1.219175 1.2236 1.1834 1.6318
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(CAD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Baytex Energy Corporation (the Company) is a conventional Canadian oil and gas company operating mainly in the Western
Canadian Sedimentary Basin. The Company has a presence in the United States, offering heavy oil, light oil and natural gas
liquids.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
0%
5%
10%
15%
20%
25%
30%
35%
40%
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
2014* 2013 2012 2011 2010
1.0
1.1
1.1
1.2
1.2
1.3
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
75
Bellatrix Exploration Ltd.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
0 0 0 157 121 107
369 322 206 0 0 0
934 904 381 (368) (304) (185)
0 0 0 (211) (182) (78)
2014* 2013 2012
EBITDA 219 153 108
EBIT 114 67 32
59 41 8
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
27% 26% 35% 25% 25% 10.183345 5.981862 3.9246 6.4432 -0.737
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
2.125821 2.653405 1.9194 1.2642 2.0882 1.589016 2.106304 1.9088 1.1875 2.2298
Cash & Cash Equivalents Cash Flow from Ops
Bellatrix Exploration Ltd. (Bellatrix) is a Canada-based oil and gas company. Bellatrix is engaged in the exploration, acquisition,
development and production, of oil and natural gas reserves in the provinces of Alberta, British Columbia and Saskatchewan.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(CAD, Millions)
0%
5%
10%
15%
20%
25%
30%
35%
40%
2014* 2013 2012 2011 2010
(2.0)
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
76
BG Group plc
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
6,344 6,208 4,434 7,895 8,230 8,171
21,166 22,737 19,113 (923) (923) (859)
33,654 31,960 32,948 (10,164) (10,605) (9,974)
0 0 0 (3,192) (3,298) (2,662)
2014* 2013 2012
EBITDA 10,692 10,836 10,675
EBIT 7,733 7,882 8,165
4,787 4,982 4,702
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
39% 42% 37% 37% 30% 13.196245 13.660312 17.046 39.917 38.79
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
2.680937 2.762697448 2.3391 2.336 1.6306 1.9796109 2.0982835 1.7904 1.7971 1.388
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
BG Group plc (the Company) is an international company engaged in the exploration and production of natural gas products.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0%
10%
20%
30%
40%
50%
2014* 2013 2012 2011 2010
0.0
10.0
20.0
30.0
40.0
50.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
77
Bill Barrett Corporation
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
58 55 79 272 281 394
1,075 1,012 1,192 0 0 0
995 1,006 1,183 (461) (448) (966)
0 0 0 (189) (167) (572)
2014* 2013 2012
EBITDA 338 336 418
EBIT 71 56 92
106 88 40
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
52% 50% 50% 42% 27% 0.876418 0.631396 0.953 3.9032 4.6758
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
3.94762 3.6001 3.0242 1.8971 0.9185 3.180139 3.01379 2.8485 1.7194 0.8618
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Bill Barrett Corporation (the Company) is an oil and natural gas exploration and development company headquartered in
Denver, Colorado. The Companys assets are located in the Rocky Mountain region with active exploration and development
properties located throughout the area.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0%
10%
20%
30%
40%
50%
60%
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
78
Birchcliff Energy Ltd.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
0 0 0 213 166 119
471 416 453 (7) (4) (2)
961 914 834 (294) (270) (299)
41 0 0 (88) (109) (182)
2014* 2013 2012
EBITDA 243 188 135
EBIT 130 79 40
74 41 11
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
33% 31% 35% 38% 37% 6.404612 4.018975 2.4088 4.3756 3.4626
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
2.215144 2.532049 3.8384 3.1878 3.9128 1.934331 2.132578 3.1351 2.7476 3.2395
Cash & Cash Equivalents Cash Flow from Ops
Birchcliff Energy Ltd. (the Company) is a Calgary-based intermediate oil and gas company that explores, develops and produces
natural gas, light oil and natural gas liquids. The Companys operations are concentrated in the Peace River Arch area of Alberta.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(CAD, Millions)
0%
10%
20%
30%
40%
50%
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
79
BlackPearl Resources Inc.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
69 8 17 98 84 81
9 12 9 0 0 0
628 559 545 (123) (93) (139)
0 0 0 (26) (9) (58)
2014* 2013 2012
EBITDA 102 88 83
EBIT 28 16 13
16 7 4
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1% 2% 2% 1% 1% 26.726833 14.900841 16.25 114.85 23.608
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0.088945 0.137028 0.1114 0.0959 0.1117 0.085381 0.131436 0.1092 0.095 0.1175
Cash & Cash Equivalents Cash Flow from Ops
BlackPearl Resources Inc. (the Company) is a publicly held Canadian oil and gas company. The Company's focus is heavy oil and
oil sands assets located in western Canada.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(CAD, Millions)
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
2014* 2013 2012 2011 2010
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
2014* 2013 2012 2011 2010
0.00
0.02
0.04
0.06
0.08
0.10
0.12
0.14
0.16
2014* 2013 2012 2011 2010
0.00
0.02
0.04
0.06
0.08
0.10
0.12
0.14
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
80
Bonanza Creek Energy, Inc.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
131 181 4 302 281 156
523 523 166 0 0 0
672 656 579 (484) (428) (300)
0 0 0 (182) (147) (144)
2014* 2013 2012
EBITDA 313 287 145
EBIT 155 147 79
66 70 42
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
44% 44% 22% 2% 15% 5.294252 6.689966 18.997 8.7245 6.5134
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.729445 1.859413 1.0643 0.1548 1.6681587 1.8210198 1.1488 0.1587
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Bonanza Creek Energy, Inc. (the Company) is an exploration and production company focused on the extraction of oil and associated
liquids-rich natural gas in the United States. The Company's operations are focused in the Wattenberg Field in the DJ Basin of
Colorado and the Cotton Valley sands of southern Arkansas.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0%
10%
20%
30%
40%
50%
2014* 2013 2012 2011 2010
0.0
5.0
10.0
15.0
20.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
81
Bonavista Energy Corporation
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
2 3 3 537 475 381
1,044 1,082 953 (97) (102) (138)
2,209 2,270 2,257 (511) (450) (405)
299 307 405 (71) (77) (163)
2014* 2013 2012
EBITDA 607 533 413
EBIT 253 184 82
82 38 17
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
32% 32% 55% 45% 49% 5.620894 4.210616 1.919 6.515 9.4854
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.944809 2.275864 2.5046 2.4839 2.5427 1.720598 2.028676 2.3077 2.4082 2.5404
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(CAD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Bonavista Energy Corporation is a conventional oil and gas company with properties located in Alberta, British Columbia and
Saskatchewan.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
0%
10%
20%
30%
40%
50%
60%
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
82
Bonterra Energy Corp.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
0 0 0 193 180 76
203 201 197 (106) (100) (62)
678 668 163 (127) (122) (85)
0 0 0 (40) (42) (71)
2014* 2013 2012
EBITDA 107 189 82
EBIT 93 98 48
71 61 34
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
23% 23% 55% 40% 39% 15.856867 13.700687 9.58 19.651 17.403
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.047078 1.119602 2.604 1.2619 1.8805 0.998915 1.062845 2.4174 1.2046 1.7317
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(CAD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Bonterra Energy Corp. is an oil and gas company headquartered in Calgary, Alberta, with an asset base of properties across
Western Canada.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
0%
10%
20%
30%
40%
50%
60%
2014* 2013 2012 2011 2010
0.0
5.0
10.0
15.0
20.0
25.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
83
BP p.l.c.
RATING: A; Stable
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
27,358 22,520 19,635 22,712 23,467 25,974
53,249 79,320 75,998 (5,246) (5,441) (5,294)
130,200 130,407 119,752 (24,682) (24,520) (23,222)
0 0 0 (7,216) (6,494) (2,542)
2014* 2013 2012
EBITDA 28,410 30,130 31,756
EBIT 14,507 16,620 19,069
15,562 16,159 17,773
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
29% 38% 39% 38% 41% 13.345906 15.3604 15.453 25.604 20.6637
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
2.344543 3.380111 2.92598 2.11189 2.04408 1.874304 2.63259 2.39319 1.6974 1.704241
Cash & Cash Equivalents Cash Flow from Ops
BP p.l.c. (BP) is a multinational company with headquarters in London, England. BP is vertically integrated and engages in all
areas of the oil and gas industry, including exploration and production, refining, distribution, power generation, etc.
KEY METRICS
BALANCE SHEET
(USD, Millions) (USD, Millions)
OPERATING CASH FLOW
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
0%
10%
20%
30%
40%
50%
2014* 2013 2012 2011 2010
0.0
5.0
10.0
15.0
20.0
25.0
30.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
84
Cabot Oil & Gas Corporation
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
25 23 31 1,157 1,072 662
1,257 1,182 1,118 (29) (25) (17)
2,269 2,205 2,131 (1,273) (1,195) (928)
0 0 0 (146) (148) (282)
2014* 2013 2012
EBITDA 1,274 1,167 698
EBIT 625 516 247
331 266 99
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
36% 35% 34% 32% 35% 9.573953 7.945258 3.6099 3.3111 2.8843
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.086678 1.103051 1.6874 1.8671 2.3174 0.986524 1.013069 1.6002 1.6952 1.9262
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Cabot Oil & Gas Corporation (the Company) is an independent oil and gas company headquartered in Houston, Texas. The
Company is engaged in the development, exploitation and exploration of oil and gas properties exclusively in the continental
United States.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0%
5%
10%
15%
20%
25%
30%
35%
40%
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
85
Canacol Energy Ltd.
RATING: NR
DESCRIPTION
2014* 2013* 2012 2014* 2013* 2012
36 56 31 63 71 72
166 167 61 0 0 0
277 234 291 (95) (81) (175)
0 0 0 (32) (11) (103)
2014* 2013* 2012
EBITDA 58 43 87
EBIT 21 3 23
7 (13) 9
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
37% 40% 17% 15% 10% -2.756417 -4.67997 8.6324 11.7112 -3.197
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
2.645320225 4.6597861 0.8772 0.8002 -0.4655 2.83951 3.88372 0.6955 0.55722 0.3575
Cash & Cash Equivalents Cash Flow from Ops
Canacol Energy Ltd. (Canacol) and its subsidiaries are primarily engaged in petroleum and natural gas exploration and
development activities in Colombia, Brazil, Ecuador and Guyana. Canacols primary producing property is the Rancho Hermoso
field in Colombia.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
0%
10%
20%
30%
40%
50%
2014* 2013 2012 2011 2010
(10.0)
(5.0)
0.0
5.0
10.0
15.0
2014* 2013 2012 2011 2010
(1.0)
0.0
1.0
2.0
3.0
4.0
5.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
86
Canadian Natural Resources Limited
RATING: BBB (high)
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
19 16 37 7,648 7,112 5,762
11,446 10,753 9,870 (625) (523) (444)
26,337 25,772 24,283 (7,192) (7,067) (6,104)
0 0 0 (169) (478) (786)
2014* 2013 2012
EBITDA 8,717 8,142 7,167
EBIT 4,004 3,298 2,839
2,782 2,320 1,984
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
30% 29% 29% 29% 32% 8.7807018 7.264317 6.145 8.85417 8.0924
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.496641318 1.5119961 1.7129 1.5065 1.5446 1.3130664 1.320683 1.3771 1.27325 1.2942
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(CAD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Canadian Natural Resources Limited is an oil and gas exploration, development and production company located in Calgary,
Alberta, with operations focused in Canada and smaller interests internationally.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
27%
28%
29%
30%
31%
32%
33%
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
2014* 2013 2012 2011 2010
1.35
1.40
1.45
1.50
1.55
1.60
1.65
1.70
1.75
2014* 2013 2012 2011 2010
1.2
1.2
1.3
1.3
1.3
1.3
1.3
1.4
1.4
1.4
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
87
Canadian Oil Sands Limited
RATING: BBB; Stable
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
292 806 1,553 1,431 1,349 1,581
1,665 1,602 1,794 (678) (678) (654)
4,759 4,732 4,515 (1,291) (1,342) (1,086)
0 0 0 (538) (671) (159)
2014* 2013 2012
EBITDA 1,759 1,723 1,722
EBIT 1,274 1,245 1,319
970 949 953
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
26% 25% 28% 21% 25% 10.442622 10.121951 11.274 18.379 10.132
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.163522013 1.187546 1.1347 0.5967 1.0154 0.94656 0.929773 1.0418 0.5717 0.926
Cash & Cash Equivalents Cash Flow from Ops
Canadian Oil Sands Limited has a working interest in Syncrude Canada Limited, which operates an oil sands mine, as well as
bitumen extraction and upgrading facilities in Alberta.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(CAD, Millions)
0%
5%
10%
15%
20%
25%
30%
2014* 2013 2012 2011 2010
0.0
5.0
10.0
15.0
20.0
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
88
Carrizo Oil & Gas, Inc.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
62 157 52 385 360 276
908 911 975 0 0 0
853 842 585 (772) (788) (740)
0 0 0 (386) (428) (464)
2014* 2013 2012
EBITDA 397 367 264
EBIT 164 153 99
59 51 61
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
52% 52% 63% 58% 55% 1.98 1.81 1.35 0.75 0.55
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
2.36 2.53 3.53 4.85 5.35 2.29 2.48 3.69 5.80 7.98
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Carrizo Oil & Gas, Inc. (the Company) is a Houston-based energy company actively engaged in the exploration, development,
and production of oil and gas. The Company's current operations are principally focused in producing oil and gas shales primarily
in the Eagle Ford Shale in South Texas, the Niobrara Formation in Colorado, the Marcellus Shale in Pennsylvania, and the Utica
Shale in Ohio.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0%
10%
20%
30%
40%
50%
60%
70%
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
89
Cenovus Energy Inc.
RATING: A (low); Stable
DESCRIPTION
2014* 2013 2012 (CAD, Millions) 2014* 2013 2012
815 2,452 1,160 Cash Flow from Ops 3,414 3,489 3,530
6,289 5,651 5,333 Total Dividends Paid (750) (732) (665)
10,099 9,946 9,782 Capital Expenditure (3,180) (3,269) (3,449)
0 0 0 Gross Free Cash Flow (516) (512) (584)
2014* 2013 2012
EBITDA 3,820 3,892 4,053
EBIT 1,988 2,059 2,468
788 712 1,329
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
38% 36% 35% 30% 30% 7.20 7.60 10.73 10.57 5.66
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.84 1.62 1.51 1.24 1.54 1.65 1.45 1.32 1.13 1.41
Cash & Cash Equivalents
Cenovus Energy Inc. is an integrated oil company with enhanced oil recovery and oil sands properties in Western Canada, along
with interests in two refineries in the United States through a joint venture.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions)
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(CAD, Millions)
DBRS Adjusted Total Equity
INCOME STATEMENT
0%
10%
20%
30%
40%
50%
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
90
Cequence Energy Ltd.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
0 0 0 63 50 28
90 86 30 0 0 0
437 436 416 (133) (118) (92)
0 0 0 (70) (67) (64)
2014* 2013
EBITDA 73 54
EBIT 27 11
13 0
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
17% 16% 7% 5% 18% 5.39 3.23 -16.83 -8.49
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.44 1.71 1.08 0.47 3.36 1.23 1.59 0.91 0.44 3.56
2012
33
(34)
(34) Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(CAD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Cequence Energy Ltd. is a natural gas and oil resource company based in Calgary, Alberta. Its properties are located in the
Deep Basin, with Simonette as its primary focus area.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
0%
5%
10%
15%
20%
2014* 2013 2012 2011 2010
(20.0)
(15.0)
(10.0)
(5.0)
0.0
5.0
10.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
91
Chesapeake Energy Corporation
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
1,004 837 287 5,292 4,956 4,030
13,527 13,640 13,273 (615) (404) (398)
18,477 18,094 17,801 (6,001) (6,576) (11,581)
0 3,062 3,062 (1,324) (2,024) (7,949)
2014* 2013 2012
EBITDA 6,094 5,173 3,604
EBIT 3,211 2,270 793
3,211 1,040 1,935
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
42% 43% 43% 40% 49% 3.52 3.15 1.16 4.59 4.30
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
2.56 2.75 3.64 2.28 2.77 2.22 2.39 3.37 2.27 2.88
Cash & Cash Equivalents Cash Flow from Ops
Chesapeake Energy Corporation, based in Oklahoma, engages in the acquisition, exploration, development and production of
natural gas and oil properties in the United States.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
0%
10%
20%
30%
40%
50%
60%
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
92
Chevron Corporation
RATING: AA; Stable
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
16,183 16,516 21,913 34,986 36,109 37,018
27,842 25,219 16,350 (7,634) (7,474) (6,844)
151,810 150,427 137,832 (38,337) (37,985) (30,938)
0 0 0 (10,985) (9,350) (764)
2014* 2013 2012
EBITDA 39,928 41,399 48,426
EBIT 25,093 27,213 35,013
19,184 21,008 23,521
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
15% 14% 11% 10% 12% 98.74 118.18 176.31 156.57 96.99
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0.80 0.70 0.44 0.37 0.48 0.70 0.61 0.34 0.27 0.38
Cash & Cash Equivalents Cash Flow from Ops
Chevron Corporation has a large portfolio of upstream assets and global downstream operations, consisting of refining and marketing
operations alongside a world-scale petrochemicals business.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
0%
5%
10%
15%
20%
2014* 2013 2012 2011 2010
0.0
50.0
100.0
150.0
200.0
2014* 2013 2012 2011 2010
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
2014* 2013 2012 2011 2010
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
93
Chinook Energy Inc.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
16 26 31 90 78 70
88 88 102 0 0 0
338 327 344 (106) (93) (80)
0 0 0 (16) (15) (10)
2014* 2013 2012
EBITDA 99 83 78
EBIT 25 9 (20)
10 1 (29)
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
21% 21% 23% 26% 27% 6.314532 1.97 -4.53 -4.20 -5.11
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0.98 1.13 1.46 2.06 4.00 0.89 1.06 1.31 1.95 4.39
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(CAD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Chinook Energy Inc. is a balanced mid-sized producer based in Calgary, Alberta. Its international oil and gas exploration and
production operations are focused in Tunisia and Western Canada.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
0%
5%
10%
15%
20%
25%
30%
2014* 2013 2012 2011 2010
(6.0)
(4.0)
(2.0)
0.0
2.0
4.0
6.0
8.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
94
Cimarex Energy Co.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
5 5 70 1,505 1,388 1,135
1,075 974 831 (48) (47) (40)
4,148 4,022 3,475 (1,654) (1,624) (1,728)
0 0 0 (197) (283) (633)
2014* 2013 2012
EBITDA 1,527 1,402 1,145
EBIT 874 918 606
634 565 364
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
21% 19% 19% 12% 13% 15.65 14.29 12.79 24.39 23.84
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0.71 0.70 0.73 0.33 0.32 0.70 0.69 0.73 0.35 0.32
Cash & Cash Equivalents Cash Flow from Ops
Cimarex Energy Co. is a Denver-based independent oil and gas exploration and production company with principal operations in
the Mid-Continent and Permian Basin areas of the U.S.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
0%
5%
10%
15%
20%
25%
2014* 2013 2012 2011 2010
0.0
5.0
10.0
15.0
20.0
25.0
30.0
2014* 2013 2012 2011 2010
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
2014* 2013 2012 2011 2010
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
95
CNOOC Limited
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
2,365 2,365 8,754 17,458 17,458 15,596
25,213 25,213 10,093 (3,290) (3,290) (2,485)
56,436 56,436 49,285 (14,105) (14,105) (10,018)
0 0 0 63 63 3,093
2014* 2013 2012
EBITDA 21,829 21,829 18,946
EBIT 12,646 12,646 13,717
9,750 9,750 10,240
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.107369676 1.1073697 0.5151 0.3625 0.3708 21.584398 21.584398 47.144 56.844 103.52
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.107369676 1.1073697 0.5151 0.3625 0.3708 1.1550466 1.1550466 0.5327 0.3633 0.3788
Cash & Cash Equivalents Cash Flow from Ops
CNOOC Limited (CNOOC) is a Chinese producer of offshore crude oil and natural gas and an independent oil and gas exploration
and production company. CNOOC mainly engages in exploration, development, production and sales of oil and natural gas.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
0
0.2
0.4
0.6
0.8
1
1.2
2014* 2013 2012 2011 2010
0.0
20.0
40.0
60.0
80.0
100.0
120.0
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
96
Comstock Resources, Inc.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
2 3 4 261 242 278
961 810 1,336 (24) (18) 0
946 952 934 (646) (523) (588)
0 0 0 (408) (300) (310)
2014* 2013 2012
EBITDA 312 267 262
EBIT (29) (70) (82)
(63) (92) (87)
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
50% 46% 59% 54% 33% -0.39 -0.89 -1.82 0.36 0.35
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
3.68 3.33 5.29 4.22 2.40 3.08 3.03 6.67 3.89 2.29
Cash & Cash Equivalents Cash Flow from Ops
Comstock Resources, Inc. (the Company) is an independent energy company engaged in the acquisition, development,
production and exploration of oil and natural gas properties. The Company's operations are primarily focused in Texas and
Louisiana.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
0%
10%
20%
30%
40%
50%
60%
70%
2014* 2013 2012 2011 2010
(2.0)
(1.5)
(1.0)
(0.5)
0.0
0.5
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
97
Concho Resources Inc.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
0 0 3 1,598 1,434 1,214
3,791 3,703 3,152 0 0 0
3,861 3,758 3,466 (2,016) (1,880) (2,774)
0 0 0 (418) (446) (1,560)
2014* 2013 2012
EBITDA 1,736 1,585 1,302
EBIT 911 813 727
397 323 305
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
50% 50% 48% 42% 42% 4.09 3.72 3.98 7.01 6.97
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
2.37 2.58 2.60 1.96 2.73 2.18 2.34 2.42 1.74 2.69
Cash & Cash Equivalents Cash Flow from Ops
Concho Resources Inc. (the Company) is an independent oil and natural gas company based in Midland, Texas. The Company
is engaged in the acquisition, development and exploration of oil and natural gas properties, and has operations primarily in
the Permian Basin of Southeast New Mexico and West Texas.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
0%
10%
20%
30%
40%
50%
60%
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
98
Connacher Oil and Gas Limited
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
20 56 127 86 86 37
1,056 1,023 986 0 0 0
160 222 343 (92) (94) (37)
0 0 0 (6) (8) (0)
2014* 2013 2012
EBITDA 101 96 48
EBIT 18 13 (13)
(94) (83) (102)
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
87% 82% 74% 70% 62% 0.21 0.16 -0.15 0.45 0.19
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
12.32 11.96 26.61 8.36 9.47 10.48 10.65 20.70 7.17 9.26
Cash & Cash Equivalents Cash Flow from Ops
Connacher Oil and Gas Limited (Connacher or the Company) is a Calgary-based exploration, development and production
company active in the production and sale of bitumen. Connacher's principal asset is a 100 percent interest in approximately 500
million barrels of bitumen reserves located on the Company's Great Divide oil sands leases near Fort McMurray, Alberta.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(CAD, Millions)
0%
20%
40%
60%
80%
100%
2014* 2013 2012 2011 2010
(0.2)
(0.1)
0.0
0.1
0.2
0.3
0.4
0.5
2014* 2013 2012 2011 2010
0.0
5.0
10.0
15.0
20.0
25.0
30.0
2014* 2013 2012 2011 2010
0.0
5.0
10.0
15.0
20.0
25.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
99
ConocoPhillips
RATING: A; Stable
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
7,730 6,518 3,618 17,373 15,318 14,117
24,818 25,274 24,587 (3,374) (3,334) (3,278)
53,621 52,492 48,427 (16,041) (15,537) (14,172)
0 0 0 (2,042) (3,553) (3,333)
2014* 2013 2012
EBITDA 19,259 19,303 20,115
EBIT 11,740 11,869 13,535
8,013 7,875 7,733
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
32% 33% 34% 29% 29% 9.31 9.28 10.22 10.38 8.45
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.43 1.65 1.74 1.87 2.79 1.29 1.31 1.22 1.25 1.38
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
ConocoPhillips, headquartered in Houston, Texas, is an independent exploration and production company. Its principal operating
regions include the U.S., Europe and Canada.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
26%
27%
28%
29%
30%
31%
32%
33%
34%
35%
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2014* 2013 2012 2011 2010
1.1
1.2
1.2
1.3
1.3
1.4
1.4
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
100
Continental Resources, Inc.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
52 28 36 2,729 2,574 1,528
5,082 4,728 3,552 0 0 0
4,188 3,953 3,164 (3,921) (3,739) (4,118)
0 0 0 (1,192) (1,165) (2,591)
2014* 2013 2012
EBITDA 3,016 2,824 1,817
EBIT 1,991 1,858 1,125
1,179 1,069 643
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
55% 54% 53% 35% 43% 7.94 7.90 8.00 11.45 8.96
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.86 1.84 2.32 1.08 1.32 1.69 1.67 1.95 1.00 1.29
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Continental Resources, Inc. is a petroleum liquids producer based in Oklahoma City. It is the largest leaseholder in the nations
premier oil play, the Bakken Play of North Dakota and Montana, and also has a presence in the Anadarko Woodford Play of
Oklahoma and the Red River Units Play of North Dakota, South Dakota and Montana.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0%
10%
20%
30%
40%
50%
60%
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
101
Crescent Point Energy Corp.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
15 16 0 2,149 2,031 1,566
2,132 1,844 1,564 (532) (422) (349)
8,422 8,500 8,595 (1,790) (1,747) (1,509)
0 0 0 (173) (139) (292)
2014* 2013 2012
EBITDA 2,396 2,214 1,676
EBIT 819 655 232
534 329 67
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
20% 18% 15% 17% 16% 10.16 8.43 3.25 8.04 4.09
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0.99 0.91 1.00 0.91 1.25 0.89 0.83 0.93 0.82 1.16
Cash & Cash Equivalents Cash Flow from Ops
Crescent Point Energy Corp. engages in acquiring, exploiting, developing and holding interests in light and medium oil and gas
properties mainly in Saskatchewan and Alberta.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(CAD, Millions)
0%
5%
10%
15%
20%
25%
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
102
Crew Energy Inc.
RATING: B; Stable
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
0 0 0 188 168 184
461 357 256 0 0 0
986 1,113 1,184 (221) (220) (259)
0 0 0 (33) (52) (75)
2014* 2013 2012
EBITDA 208 187 200
EBIT 17 (3) (3)
51 (1) (22)
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
32% 24% 18% 18% 19% 0.96 -0.22 -0.19 3.27 4.37
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
2.46 2.12 1.39 1.46 1.55 2.22 1.91 1.28 1.37 1.43
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(CAD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Crew Energy Inc. (the Company) is an oil and natural gas producer based in Calgary, Alberta. Its activities are concentrated in
Alberta, northeast British Columbia and Saskatchewan. The Company's focus is on the development and expansion of its core
natural gas and light oil producing areas and exploration of its large, undeveloped land base.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
0%
5%
10%
15%
20%
25%
30%
35%
2014* 2013 2012 2011 2010
(1.0)
0.0
1.0
2.0
3.0
4.0
5.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
103
Delphi Energy Corp.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
3 2 0 50 37 32
137 127 98 0 0 0
235 232 242 (84) (72) (84)
0 0 0 (34) (35) (52)
2014* 2013 2012
EBITDA 61 45 34
EBIT 23 9 (9)
11 4 4
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
37% 35% 29% 25% 34% 3.86 1.65 -1.91 4.25 3.47
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
2.77 3.48 3.07 1.33 1.90 2.24 2.85 2.89 1.28 1.84
Cash & Cash Equivalents Cash Flow from Ops
Delphi Energy Corp. (the Company) is an oil and gas company operating in Alberta, Canada. It is engaged in the exploration
for, development and production of crude oil and natural gas from properties and assets located in Western Canada. The
Companys operations are primarily concentrated in the Deep Basin of North West Alberta, with the Deep Basin located at
Bigstone, Hythe and Wapiti as its three core areas.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(CAD, Millions)
0%
5%
10%
15%
20%
25%
30%
35%
40%
2014* 2013 2012 2011 2010
(3.0)
(2.0)
(1.0)
0.0
1.0
2.0
3.0
4.0
5.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
104
Denbury Resources Inc.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
8 12 99 1,245 1,272 1,365
3,619 3,367 3,363 (22) 0 0
5,148 5,301 5,115 (1,163) (1,244) (1,610)
0 0 0 60 28 (244)
(USD, Millions) 2014* 2013 2012
EBITDA 1,382 1,376 1,532
EBIT 844 866 1,025
Net Income Before Non-Recurring Items 391 431 539
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
41% 39% 40% 38% 37% 3.89 3.94 4.44 4.70 2.53
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
2.91 2.65 2.46 2.16 3.49 2.62 2.45 2.19 1.97 2.51
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Denbury Resources Inc. (the Company) is an independent oil and gas company headquartered in Dallas, Texas. The Company is
a large oil and natural gas producer in both Mississippi and Montana and holds an operating acreage in the Rocky Mountain and
Gulf Coast regions.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0%
10%
20%
30%
40%
50%
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
105
Devon Energy Corporation
RATING: BBB (high); Stable
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
2,027 1 4 5,943 44 35
15,758 82 44 (357) (32) (26)
25,046 235 225 (6,415) (30) (43)
0 0 0 (829) (18) (34)
INCOME STATEMENT
(USD, Millions) 2014* 2013 2012
EBITDA 6,157 5,689 5,253
EBIT 3,342 2,909 2,441
Net Income Before Non-Recurring Items 1,113 1,559 1,393
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
39% 37% 36% 32% 24% 6.59 5.90 5.38 9.79 9.54
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
2.65 2.21 2.43 1.56 1.13 2.56 2.16 2.27 1.59 1.01
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
Cash & Cash Equivalents Cash Flow from Ops
Devon Energy Corporation has a portfolio of reserves in North America. It is a producer in the Canadian oil sands and the Texas
Barnett Shale formation.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0%
10%
20%
30%
40%
50%
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
106
Eagle Energy Trust
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
0 1 4 43 44 35
90 82 44 (33) (32) (26)
243 235 225 (38) (30) (43)
0 0 0 (28) (18) (34)
2014* 2013 2012
EBITDA 48 48 37
EBIT 15 17 12
(0) 1 15
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
27% 26% 16% 1% 0% 6.07 7.92 10.42 101.69 -18.27
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
2.11 1.85 1.24 0.06 -1.00 1.88 1.69 1.18 0.06 -1.01
Cash & Cash Equivalents Cash Flow from Ops
Eagle Energy Trust (the Trust) is an unincorporated open-ended limited purpose trust. The Trust is engaged in the acquisition,
development, and production of petroleum reserves in the United States. The Trust is based in Calgary, Canada.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(CAD, Millions)
0%
5%
10%
15%
20%
25%
30%
2014* 2013 2012 2011 2010
(40.0)
(20.0)
0.0
20.0
40.0
60.0
80.0
100.0
120.0
2014* 2013 2012 2011 2010
(1.5)
(1.0)
(0.5)
0.0
0.5
1.0
1.5
2.0
2.5
2014* 2013 2012 2011 2010
(1.5)
(1.0)
(0.5)
0.0
0.5
1.0
1.5
2.0
2.5
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
107
Ecopetrol S.A.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
2,475 4,580 4,494 11,677 11,211 12,042
6,523 11,499 7,757 (3,191) (7,804) (4,668)
33,782 39,209 38,116 (8,513) (7,619) (8,610)
0 0 0 (27) (4,211) (1,236)
(USD, Millions) 2014* 2013 2012
EBITDA 13,059 11,898 16,484
EBIT 12,024 11,695 13,474
Net Income Before Non-Recurring Items 7,980 7,626 8,190
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
16% 23% 17% 13% 18% 24.56 36.84 41.62 62.31 88.27
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0.61 1.06 0.64 0.37 0.70 0.41 0.97 0.47 0.27 0.52
Cash & Cash Equivalents Cash Flow from Ops
Ecopetrol S.A. is a Colombian energy company that focuses on oil and gas exploration, production, transportation and marketing.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
0%
5%
10%
15%
20%
25%
2014* 2013 2012 2011 2010
0.0
20.0
40.0
60.0
80.0
100.0
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
108
Encana Corporation
RATING: BBB; Stable
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
2,162 2,566 3,179 3,000 2,468 3,430
6,610 7,406 7,981 (305) (401) (588)
5,234 5,147 5,295 (2,508) (2,712) (3,476)
0 0 0 187 (645) (634)
(USD, Millions) 2014* 2013 2012
EBITDA 3,191 2,900 3,695
EBIT 1,603 1,335 1,739
Net Income Before Non-Recurring Items 1,603 993 1,314
KEY RATIOS
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
34% 36% 38% 34% 33% 2.81 2.21 3.33 1.72 2.58
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
2.20 3.00 2.33 2.06 1.86 2.07 2.63 2.16 1.98 1.76
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Encana Corporation is a North American energy producer focused on its portfolio of natural gas, oil and natural gas liquids.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0%
5%
10%
15%
20%
25%
30%
35%
40%
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
109
Energen Corporation
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
35 6 10 895 872 799
1,995 1,974 1,827 (42) (42) (40)
2,911 2,858 2,677 (1,180) (1,195) (1,184)
0 0 0 (328) (366) (426)
(USD, Millions) 2014* 2013 2012
EBITDA 894 846 774
EBIT 367 348 388
Net Income Before Non-Recurring Items 367 219 200
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
41% 41% 41% 33% 26% 5.23 5.03 5.93 8.87 8.79
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
2.23 2.27 2.29 1.73 1.12 2.23 2.33 2.36 1.84 1.26
Cash & Cash Equivalents Cash Flow from Ops
Energen Corporation (the Company) is an independent producer of domestic oil, natural gas and natural gas liquids, and is
headquartered in Birmingham, Alabama. More than 90% of the Companys proved reserves are located in the Permian basin in
West Texas and in the San Juan basin in New Mexico and Colorado.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
0%
10%
20%
30%
40%
50%
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
110
Energy XXI (Bermuda) Limited
RATING: NR
DESCRIPTION
2014* 2013* 2012 2014* 2013* 2012
304 358 117 635 658 815
2,048 2,041 1,055 (47) (44) (19)
1,333 1,366 1,406 (827) (825) (571)
0 0 0 (239) (211) 226
(USD, Millions) 2014* 2013* 2012
EBITDA 770 764 844
EBIT 369 375 476
Net Income Before Non-Recurring Items 122 156 338
EBIT Gross Interest Coverage (Times)
2014* 2013* 2012 2011 2010 2014* 2013* 2012 2011 2010
61% 50% 43% 55% 64% 2.67 3.63 4.82 3.78 2.33
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013* 2012 2011 2010 2014* 2013* 2012 2011 2010
3.22 2.23 1.29 2.96 3.97 2.66 1.83 1.20 2.16 2.59
*2013 figures refer to LTM as of Dec 31, 2013.
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Energy XXI (Bermuda) Limited is an oil-focused company with assets in South Louisiana and on the Gulf of Mexico Shelf. It
operates five oilfields on the Gulf of Mexico Shelf.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0%
10%
20%
30%
40%
50%
60%
70%
2014* 2013* 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2014* 2013* 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2014* 2013* 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2014* 2013* 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
111
Enerplus Corporation
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
6 3 5 785 738 625
1,108 1,107 1,149 (169) (171) (278)
1,987 1,932 1,951 (732) (688) (865)
0 0 0 (116) (121) (519)
(CAD, Millions) 2014* 2013 2012
EBITDA 866 788 657
EBIT 287 195 97
Net Income Before Non-Recurring Items 70 42 499
KEY RATIOS
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
36% 36% 37% 23% 19% 4.99 3.44 1.83 4.53 5.44
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.41 1.50 1.91 1.78 1.27 1.28 1.40 1.75 1.36 1.16
Cash & Cash Equivalents Cash Flow from Ops
Enerplus Corporation (the Company) features a diversified asset base through the development and exploration of crude oil and
natural gas in Canada and the United States. The Company is headquartered in Calgary, Alberta.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
0%
5%
10%
15%
20%
25%
30%
35%
40%
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
112
Eni S.p.A.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
6,724 14,702 10,776 18,793 12,366 19,661
29,946 41,056 37,608 (4,205) (5,577) (5,627)
62,399 84,119 82,295 (12,223) (17,001) (17,369)
0 0 0 12,673 2,449 11,944
(USD, Millions) 2014* 2013 2012
EBITDA 17,087 22,821 36,489
EBIT 7,801 10,604 24,233
Net Income Before Non-Recurring Items 5,272 7,231 10,496
KEY RATIOS
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
32% 33% 31% 36% 38% 8.45 8.65 19.24 17.94 20.53
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.59 1.58 1.05 1.40 1.41 1.75 1.73 1.00 1.43 1.41
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Eni S.p.A., based in Italy, is an integrated energy company involved in the exploration, production, transportation, refining and sale
of oil and natural gas with operations worldwide. It also produces and sells electricity, petrochemical and petroleum products,
hydrocarbons and engages in offshore and onshore hydrocarbon fields.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0%
5%
10%
15%
20%
25%
30%
35%
40%
2014* 2013 2012 2011 2010
0.0
5.0
10.0
15.0
20.0
25.0
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
113
EOG Resources, Inc.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
1,667 1,318 876 7,670 7,166 5,456
6,629 6,633 7,224 (205) (199) (181)
16,033 15,418 13,285 (7,267) (7,061) (7,355)
0 0 0 198 (94) (2,081)
2014* 2013 2012
EBITDA 8,090 7,475 5,293
EBIT 4,389 3,874 2,123
3,029 2,653 2,040
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
29% 30% 35% 32% 36% 16.09 13.61 8.06 7.43 4.65
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0.86 0.93 1.32 1.42 2.12 0.82 0.89 1.36 1.34 2.02
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
EOG Resources, Inc. and its subsidiaries engage in crude oil and natural gas exploration, development, production and
marketing with operations located primarily in the United States, Canada, U.K., China, Trinidad and Tobago and Argentina. It
is headquartered in Houston, Texas.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0%
5%
10%
15%
20%
25%
30%
35%
40%
2014* 2013 2012 2011 2010
0.0
5.0
10.0
15.0
20.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
114
EPL Oil & Gas, Inc.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
4 9 2 356 394 250
724 634 695 0 0 0
644 629 546 (2) (2) (2)
0 0 0 354 392 248
(USD, Millions) 2014* 2013 2012
EBITDA 399 429 258
EBIT 200 229 144
Net Income Before Non-Recurring Items 20 49 77
EBIT Gross Interest Coverage (Times)
2013 2013 2012 2011 2010 2014* 2013 2012 2011 2010
53% 50% 56% 30% 1% 3.80 4.37 5.04 6.23 3.49
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
2.04 1.61 2.78 1.01 0.03 7.86 5.61 1.82 1.48 2.70
Cash & Cash Equivalents Cash Flow from Ops
EPL Oil & Gas, Inc. (the Company) is an independent oil and natural gas exploration and production company. The Company's
current operations are concentrated in the U.S. GOM shelf & Gulf Coast, focusing on the state and federal waters offshore LA.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
0%
10%
20%
30%
40%
50%
60%
2013 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
115
EXCO Resources, Inc.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
95 50 46 343 265 388
1,548 1,939 1,945 (46) (43) (34)
405 148 149 (349) (321) (534)
0 0 0 (52) (99) (181)
(USD, Millions) 2014* 2013 2012
EBITDA 412 359 255
EBIT 138 113 (48)
Net Income Before Non-Recurring Items (41) 10 108
KEY RATIOS
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
79% 93% 93% 56% 51% 1.14 0.93 -0.49 1.00 0.75
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
4.51 7.31 5.02 3.01 6.96 3.76 5.41 7.62 4.35 6.61
Cash & Cash Equivalents Cash Flow from Ops
EXCO Resources, Inc. (the Company) is a natural gas and oil company headquartered in Dallas, Texas. The Company is engaged
in the exploration, exploitation, development and production of onshore natural gas and oil properties. Its operations are focused
in the Permian Basin, the Appalachian basin and the East Texas/North Louisiana area.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
0%
20%
40%
60%
80%
100%
2014* 2013 2012 2011 2010
(1.0)
(0.5)
0.0
0.5
1.0
1.5
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
116
Exxon Mobil Corporation
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
5,601 4,644 9,582 50,374 48,841 48,541
35,713 37,045 25,105 (11,303) (10,875) (10,092)
182,891 180,495 171,660 (33,503) (33,669) (34,271)
0 0 0 5,568 4,297 4,178
2014* 2013 2012
EBITDA 56,480 55,218 52,264
EBIT 39,216 38,036 36,376
30,710 31,108 31,877
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
16% 17% 13% 16% 15% 108.93 125.85 59.49 64.06 50.32
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0.71 0.76 0.49 0.54 0.63 0.63 0.65 0.38 0.43 0.51
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Exxon Mobil Corporation (the Company) is a multinational company engaged in crude oil and natural gas production. Headquartered in
Irving, Texas, the Company is involved in exploration, the manufacture of petroleum products, transportation, as well as the
manufacture and sales of commodity petrochemicals.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0%
5%
10%
15%
20%
2014* 2013 2012 2011 2010
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
2014* 2013 2012 2011 2010
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
2014* 2013 2012 2011 2010
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
117
Forest Oil Corporation
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
48 66 1 338 140 376
936 936 2,043 0 0 0
35 54 (43) (679) (365) (731)
0 0 0 (341) (225) (354)
2014* 2013 2012
EBITDA 355 283 389
EBIT 101 112 109
(136) 63 (154)
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
96% 95% 102% 61% 60% 0.79 0.92 0.73 1.66 1.90
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
2.77 6.68 5.43 5.02 4.19 2.64 3.30 5.24 3.85 4.15
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Forest Oil Corporation (Forest or the Company) is an independent oil and gas exploration and production company. The
Company is engaged in the exploration, acquisition, development, production and marketing of natural gas and crude oil in the
United States and has principal reserves and producing properties in Arkansas, Louisiana, Oklahoma and Texas.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0%
20%
40%
60%
80%
100%
120%
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
118
Freehold Royalties Ltd.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
0 0 0 126 119 104
49 49 18 (82) (84) (81)
293 294 316 (25) (29) (37)
0 0 0 19 6 (14)
2014* 2013 2012
EBITDA 152 144 135
EBIT 92 82 70
65 58 46
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
14% 14% 5% 15% 19% 34.64 32.26 31.29 27.95 18.20
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0.39 0.41 0.17 0.38 0.63 0.32 0.34 0.13 0.37 0.58
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(CAD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Freehold Royalties Ltd. (the Company) is an oil and gas company based in Calgary, Alberta. The Company's assets generate income
from crude oil, natural gas, natural gas liquids, and potash.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
0%
5%
10%
15%
20%
2014* 2013 2012 2011 2010
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
2014* 2013 2012 2011 2010
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
2014* 2013 2012 2011 2010
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
119
Galp Energia SGPS, SA
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
2,072 2,072 2,488 1,026 1,064 389
5,067 5,067 4,724 (295) (295) (347)
8,840 8,840 8,842 (1,006) (1,006) (1,094)
0 0 0 (237) (237) (1,052)
(USD, Millions) 2014* 2013 2012
EBITDA 1,297 1,323 1,265
EBIT 607 668 798
Net Income Before Non-Recurring Items 402 440 571
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
36.4% 36.4% 34.8% 56.4% 53.4% 2.9980817 2.9980817 3.9185 4.0684 6.4204
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
4.534759358 4.5884162 11.844 3.6794 4.2131 3.8284411 3.8284411 3.6745 3.5584 3.2748
Cash & Cash Equivalents Cash Flow from Ops
Galp Energia SGPS, SA (the Company) is a Portuguese oil and natural gas integrated operator. The Company focuses on the
exploration and production of oil and natural gas to refining and marketing oil products, natural gas marketing and sales and
power generation.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
120
Gastar Exploration Ltd.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
27 32 9 51 45 30
318 317 101 (12) (9) (7)
207 210 127 (88) (96) (137)
0 0 0 (48) (60) (114)
(USD, Millions) 2014* 2013 2012
EBITDA 73 57 17
EBIT 34 25 (9)
Net Income Before Non-Recurring Items 45 41 3
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
61% 60% 44% 12% 1% 1.61 1.74 -4.47 -18.82 -8.98
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
6.19 6.98 3.38 2.42 -0.33 4.33 5.57 6.13 13.95 0.45
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Gastar Exploration Ltd. is engaged in the exploration, development and production of natural gas, natural gas liquids, oil and
condensate in the United States.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0%
10%
20%
30%
40%
50%
60%
70%
2014* 2013 2012 2011 2010
(20.0)
(15.0)
(10.0)
(5.0)
0.0
5.0
2014* 2013 2012 2011 2010
(1.0)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
121
Goodrich Petroleum Corporation
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
1 49 1 87 84 126
508 496 578 (25) (19) (6)
328 357 60 (257) (251) (252)
2 2 2 (194) (186) (133)
2014* 2013 2012
EBITDA 104 99 81
EBIT (25) (37) (60)
(84) (94) (24)
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
61% 58% 91% 80% 66% -0.51 -0.71 -1.15 -0.18 -1.03
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
5.83 5.90 4.59 4.30 4.31 4.88 5.02 7.15 4.67 5.27
Cash & Cash Equivalents Cash Flow from Ops
Goodrich Petroleum Corporation is an independent exploration and production company that drills for, acquires, develops and
produces natural gas and crude oil primarily in the Haynesville Shale and Cotton Valley Trend in East Texas and North
Louisiana, the Eagle Ford Shale oil window of South Texas, and in the Tuscaloosa Marine Shale of South Mississippi and
Louisiana.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
0%
20%
40%
60%
80%
100%
2014* 2013 2012 2011 2010
(1.4)
(1.2)
(1.0)
(0.8)
(0.6)
(0.4)
(0.2)
0.0
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
122
Gran Tierra Energy Inc.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
391 429 213 306 353 324
16 16 12 0 0 0
1,478 1,430 1,291 (264) (367) (276)
0 0 0 42 (14) 48
INCOME STATEMENT
(USD, Millions) 2014* 2013 2012
EBITDA 372 518 399
EBIT 215 284 237
Net Income Before Non-Recurring Items 115 145 128
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1% 1% 1% 2% 2% N.M. N.M. N.M. N.M. N.M.
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0.05 0.05 0.04 0.09 0.07 0.04 0.03 0.03 0.06 0.05
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
KEY RATIOS
Cash & Cash Equivalents Cash Flow from Ops
Gran Tierra Energy Inc. (the Company) is an international oil and gas exploration and production company headquartered in
Calgary, Alberta. The Company currently holds interests in producing and has prospective properties in Colombia, Argentina,
Peru and Brazil.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
2014* 2013 2012 2011 2010
0.00
0.02
0.04
0.06
0.08
0.10
2014* 2013 2012 2011 2010
0.00
0.01
0.02
0.03
0.04
0.05
0.06
0.07
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
123
Grupa LOTOS S.A.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
111 167 87 284 251 576
2,209 2,128 2,117 0 0 0
3,019 3,045 2,925 (400) (309) (233)
0 0 0 (116) (58) 343
2014* 2013 2012
EBITDA 280 253 594
EBIT 56 45 389
17 (18) 547
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
42% 41% 43% 49% 46% 1.23 0.71 5.51 6.05 6.20
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
7.78 8.33 3.74 3.47 4.11 8.89 8.56 11.66 3.50 3.53
Cash & Cash Equivalents Cash Flow from Ops
Grupa LOTOS S.A. (the Company) is an oil company engaged in the business of production and processing of crude oil, as well as
wholesale and retail sale of high quality petroleum products. The Company is a producer and supplier of a number of products,
including unleaded gasoline, diesel oil, diesel oil for heating purposes (light fuel oil), aviation fuel and heavy fuel oil. It also
specialises in the production and sale of lubricating oils and bitumens.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
0%
10%
20%
30%
40%
50%
60%
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
124
Gulfport Energy Corporation
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
170 459 167 276 171 176
302 302 300 0 0 0
2,165 2,050 1,126 (911) (811) (758)
0 0 0 (635) (640) (582)
(USD, Millions) 2014* 2013 2012
EBITDA 219 175 181
EBIT 66 56 90
Net Income Before Non-Recurring Items 213 172 68
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
12% 13% 21% 0% 28% 2.63 2.28 12.11 79.52 18.50
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.09 1.77 1.70 0.01 1.71 1.38 1.73 1.66 0.01 1.68
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Gulfport Energy Corporation (the Company) is an oil and gas exploration and production company headquartered in Oklahoma
City. The Companys principal producing properties are located along the Louisiana Gulf Coast and in the Permian Basin in
West Texas.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0%
5%
10%
15%
20%
25%
30%
2014* 2013 2012 2011 2010
0.0
20.0
40.0
60.0
80.0
100.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
125
Halcn Resources Corporation
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
0 3 3 593 558 55
3,586 3,236 2,158 0 0 0
1,381 1,448 2,093 (2,552) (2,520) (1,256)
0 0 0 (1,959) (1,962) (1,201)
(USD, Millions) 2014* 2013 2012
EBITDA 680 621 63
EBIT 179 158 (27)
Net Income Before Non-Recurring Items 248 244 (26)
KEY RATIOS
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
72% 69% 51% 97% 98% 0.64 0.61 -0.32 1.17 1.10
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
6.05 5.80 39.31 6.35 5.39 5.27 5.21 34.26 4.78 3.83
Cash & Cash Equivalents Cash Flow from Ops
Halcn Resources Corporation is an independent energy company focused on the acquisition, production, exploration and
development of onshore liquids-rich assets in the United States.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
0%
20%
40%
60%
80%
100%
120%
2014* 2013 2012 2011 2010
(0.5)
0.0
0.5
1.0
1.5
2014* 2013 2012 2011 2010
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
2014* 2013 2012 2011 2010
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
126
Hellenic Petroleum S.A.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
65 760 924 (131) 10 766
3,484 3,812 3,797 (62) (58) (178)
2,151 3,051 3,290 (160) (140) (666)
0 0 0 (352) (184) (78)
2014* 2013 2012
EBITDA 144 104 389
EBIT (140) (193) 160
(270) (312) 78
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
62% 56% 54% 53% 49% -0.46 -0.66 0.84 1.14 3.28
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
-26.69 -20.73 15.48 3.18 3.05 24.25 36.50 9.70 7.72 5.27
Cash & Cash Equivalents Cash Flow from Ops
Hellenic Petroleum S.A. is an energy group in south-east Europe and an industrial and commercial company in Greece. Its
activities consist of refining & marketing, petrochemicals, hydrocarbon exploration and production, and natural gas and power.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
0%
10%
20%
30%
40%
50%
60%
70%
2014* 2013 2012 2011 2010
(1.0)
0.0
1.0
2.0
3.0
4.0
2014* 2013 2012 2011 2010
(30.0)
(20.0)
(10.0)
0.0
10.0
20.0
2014* 2013 2012 2011 2010
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
127
Hess Corporation
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
1,288 1,814 642 5,814 5,562 4,778
10,406 10,628 12,311 (279) (235) (171)
24,242 24,784 21,203 (5,768) (5,840) (7,743)
0 0 0 (233) (513) (3,136)
2014* 2013 2012
EBITDA 5,844 6,066 6,867
EBIT 3,011 3,296 3,945
2,461 2,817 2,016
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
30% 30% 37% 33% 32% 7.90 8.12 9.42 10.12 10.74
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.79 1.91 2.58 1.87 2.01 1.78 1.75 1.79 1.48 1.29
Cash & Cash Equivalents Cash Flow from Ops
Hess Corporation is a global energy company engaged in the exploration and production of crude oil and natural gas, as well as
in refining and marketing refined petroleum products, natural gas and electricity.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
0%
5%
10%
15%
20%
25%
30%
35%
40%
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
128
HKN, Inc.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
12 14 19 (1) (1) (3)
1 1 1 0 0 0
58 64 72 (8) (7) (3)
0 0 0 (9) (8) (6)
2014* 2013 2012
EBITDA (3) (3) (4)
EBIT (4) (3) (5)
(2) (1) (3)
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
2% 2% 2% 2% 1% -102.41667 -93.86 -2288.50 N/A N/A
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
-0.918962 -1.05 -0.33 5.38 0.44 -0.3753724 -0.43 -0.27 -0.30 -0.22
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
HKN, Inc. (the Company) is a publicly traded company incorporated in 1973 in the State of California and reincorporated in 1979 in
the State of Delaware. Main operations of the Company are oil and gas exploration, development and production.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
2014* 2013 2012 2011 2010
(2500.0)
(2000.0)
(1500.0)
(1000.0)
(500.0)
0.0
2014* 2013 2012 2011 2010
(2.0)
(1.0)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2014* 2013 2012 2011 2010
(0.5)
(0.5)
(0.4)
(0.4)
(0.3)
(0.3)
(0.2)
(0.2)
(0.1)
(0.1)
0.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
129
Husky Energy Inc.
RATING: A (low); Stable
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
1,518 1,097 2,025 5,327 5,080 4,887
5,998 5,049 4,698 (1,185) (1,184) (1,181)
20,535 20,078 19,161 (5,145) (5,028) (4,701)
291 291 291 (1,003) (1,132) (995)
2014* 2013 2012
EBITDA 5,857 5,646 5,387
EBIT 2,828 2,641 2,807
1,928 1,802 1,979
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0.226058116 20% 20% 20% 25% 9.0063694 8.52 8.88 10.19 4.69
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.12596208 0.99 0.96 0.90 1.61 1.0240738 0.89 0.87 0.80 1.39
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(CAD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Husky Energy Inc.s upstream and midstream operations, primarily located in Canada, include infrastructure and commodity
marketing. Its downstream operations include upgrading, refining and marketing.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
0
0.05
0.1
0.15
0.2
0.25
0.3
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
130
Imperial Oil Limited
RATING: AA (high); Stable
DESCRIPTION
OPERATING CASH FLOW
2014* 2013 2012 2014* 2013 2012
102 272 482 4,473 4,270 5,052
7,347 7,349 2,727 (415) (407) (398)
20,361 19,524 16,377 (6,158) (6,297) (5,478)
0 0 0 (2,100) (2,434) (824)
2014* 2013 2012
EBITDA 4,900 4,627 5,573
EBIT 3,695 3,517 4,812
2,816 2,684 3,649
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0.265158 27% 14% 15% 9% 39.731182 43.96 253.26 218.72 212.53
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.642521797 1.72 0.54 0.58 0.37 1.499387 1.59 0.49 0.47 0.32
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(CAD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Imperial Oil Limited, 69.6% owned by ExxonMobil, is a refiner and marketer of petroleum products and a major producer of
petrochemical products in Canada.
KEY METRICS
BALANCE SHEET
(CAD, Millions) (CAD, Millions)
0%
5%
10%
15%
20%
25%
30%
2014* 2013 2012 2011 2010
0.0
50.0
100.0
150.0
200.0
250.0
300.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
131
Inpex Corporation
RATING: NR
DESCRIPTION
2014* 2013* 2012 2014* 2013* 2012
6,311 6,103 4,050 8,270 906 3,011
5,665 5,751 4,131 (309) (301) (341)
29,080 27,692 28,071 (4,330) (3,310) (1,255)
0 0 0 3,631 (2,705) 1,414
(USD, Millions) 2014* 2013 2012
EBITDA 7,321 7,769 9,266
EBIT 7,321 7,492 8,989
Net Income Before Non-Recurring Items 1,766 1,185 1,890
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
16% 16% 13% 12% 15% 314.18 456.82 577.65 493.24 362.09
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0.70 0.58 0.40 0.50 0.47 0.80 0.69 0.47 0.53 0.53
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Inpex Corporation (Inpex) is a Japanese company headquartered in Akasaka district, Tokyo. Inpex's main business includes:
research, exploration, development, production and sales of oil, natural gas and other mineral resources, other related
businesses and investment and lending to the companies engaged in these activities.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0%
5%
10%
15%
20%
2014* 2013 2012 2011 2010
0.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
2014* 2013 2012 2011 2010
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
2014* 2013 2012 2011 2010
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
132
Isramco, Inc.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
3 4 1 34 27 16
113 113 104 0 0 0
17 12 19 (23) (20) (17)
0 0 0 11 6 (1)
2014* 2013 2012
EBITDA 40 32 19
EBIT 28 20 8
13 9 6
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0.86755 90% 85% 85% 87% 4.22956 3.21 1.33 1.23 0.66
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
3.348378 4.24 6.59 14.85 9.59 2.8135576 3.40 5.26 5.46 7.21
Cash & Cash Equivalents Cash Flow from Ops
Isramco, Inc. (the Company), together with its subsidiaries, engages in the acquisition, development, production, and
exploration of oil and natural gas properties in the United States and Israel. The Company was founded in 1982 and is based in
Houston, Texas.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Net Income Before Non-Recurring Items
0%
20%
40%
60%
80%
100%
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
133
JSOC Bashneft
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
899 499 657 2,469 2,534 2,392
4,350 2,933 3,873 (590) (1,335) (591)
6,643 7,189 8,107 (1,087) (979) (1,017)
0 0 0 792 219 784
2014* 2013 2012
EBITDA 3,268 3,267 3,224
EBIT 2,814 2,645 2,774
1,854 2,010 1,846
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0.395679 29% 32% 34% 34% 11.124113 9.73 7.87 6.49 5.47
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.778011 1.16 1.62 1.43 2.13 1.3307814 0.90 1.20 1.09 1.74
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
JSOC Bashneft (Bashneft) is a vertically integrated oil company based on the fuel and energy producers of the Republic of
Bashkortostan. Bashneft sells its products in Russia and exports them to Eastern and Western Europe and Kazakhstan.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0
0.1
0.2
0.3
0.4
0.5
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
2014* 2013 2012 2011 2010
0.0
0.4
0.8
1.2
1.6
2.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
134
Kodiak Oil & Gas Corp.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
16 0 24 635 599 297
2,261 2,270 1,106 0 0 0
1,228 1,193 1,036 (960) (1,028) (764)
0 0 0 (325) (429) (467)
2014* 2013 2012
EBITDA 734 667 289
EBIT 385 350 133
169 170 101
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0.64794 66% 52% 47% 12% 3.220596 3.21 1.93 1.52 7.42
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
3.562771 3.82 3.73 10.61 2.62 3.078943 3.40 3.83 10.24 3.51
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Net Income Before Non-Recurring Items
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Kodiak Oil & Gas Corp. is an independent exploration and production company. It is focused on exploring, developing and
producing oil and natural gas in the U.S. Rocky Mountain region, and has core operations in the Williston Basin in Montana and
North Dakota, and the Vermillion Basin of the Great Green River basin.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0%
10%
20%
30%
40%
50%
60%
70%
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
135
Kosmos Energy Ltd.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
528 598 515 405 396 326
821 926 1,017 0 0 0
1,085 992 1,029 (330) (317) (369)
0 0 0 75 79 (43)
2014* 2013 2012
EBITDA 372 349 284
EBIT 162 126 98
(50) (91) (64)
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0.430833 48% 50% 52% 109% 3.643649 2.53 1.57 2.90 -2.52
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
2.025931 2.34 3.12 2.76 -10.67 2.206258 2.66 3.59 3.24 -8.92
Cash & Cash Equivalents Cash Flow from Ops
Kosmos Energy Ltd. is a pathfinding oil and gas exploration and production company headquartered in Bermuda. Its primary
areas of operation are underexplored regions of Africa and South America.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Net Income Before Non-Recurring Items
0
0.2
0.4
0.6
0.8
1
1.2
2014* 2013 2012 2011 2010
(3.0)
(2.0)
(1.0)
0.0
1.0
2.0
3.0
4.0
2014* 2013 2012 2011 2010
(12.0)
(10.0)
(8.0)
(6.0)
(4.0)
(2.0)
0.0
2.0
4.0
2014* 2013 2012 2011 2010
(10.0)
(8.0)
(6.0)
(4.0)
(2.0)
0.0
2.0
4.0
6.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
136
Laredo Petroleum, Inc.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
548 198 33 360 377 365
1,513 1,064 1,227 0 0 0
1,276 1,272 832 (756) (743) (920)
0 0 0 (395) (366) (555)
2014* 2013 2012
EBITDA 450 450 414
EBIT 231 216 173
132 119 78
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0.537553 46% 60% 46% 54% 2.220132 2.15 2.01 4.02 4.04
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
4.199843 2.82 3.36 1.91 2.92 3.36001 2.36 2.96 1.71 2.86
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Laredo Petroleum, Inc. (the Company) is an independent energy company with headquarters in Tulsa, Oklahoma. The Company
is focused on the exploration, development and acquisition of oil and natural gas properties in the Permian and Mid-Continent
regions of the United States.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
137
Legacy Oil & Gas Inc.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
13 10 4 296 276 220
788 757 548 0 0 0
1,536 1,531 1,464 (354) (321) (315)
0 0 0 (58) (45) (95)
2014* 2013 2012
EBITDA 353 321 237
EBIT 124 99 29
43 30 (5)
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0.339148 33% 27% 22% 17% 3.250608 2.68 1.48 4.55 3.00
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
2.661709 2.744399 2.488 2.2238 2.3108 2.233444 2.36 2.31 2.07 1.97
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(CAD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Legacy Oil & Gas Inc. (the Company) is an intermediate oil and natural gas company based in Calgary, Alberta. The Companys
assets are focused in southeast Saskatchewan and southwest Alberta.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
0%
5%
10%
15%
20%
25%
30%
35%
40%
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2014* 2013 2012 2011 2010
1.7
1.8
1.9
2.0
2.1
2.2
2.3
2.4
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
138
LightStream Resources Ltd.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
0 0 0 661 671 580
2,080 2,137 1,809 (125) (134) (78)
1,934 1,933 3,433 (651) (760) (956)
0 0 0 (115) (223) (454)
(CAD, Millions) 2014* 2013 2012
EBITDA 804 799 705
EBIT 296 278 260
Net Income Before Non-Recurring Items 100 87 129
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0.518113 53% 35% 34% 30% 2.125273 2.06 2.04 3.96 3.99
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
3.144123 3.19 3.12 3.14 2.35 2.586933 2.67 2.57 2.49 2.11
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
LightStream Resources Ltd. is a light oil-focused exploration and production company. Principal operating areas include
southeastern Saskatchewan, targeting the Bakken formation and conventional Mississippian reservoirs, central Alberta, focusing
on the Cardium formation, and north-central Alberta, engaging in exploring for light oil resource plays.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
0%
10%
20%
30%
40%
50%
60%
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
139
LINN Energy, LLC
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
68 52 1 1,316 1,142 379
9,466 9,256 6,077 (751) (682) (597)
5,591 5,891 4,427 (1,314) (1,170) (1,045)
0 0 0 (749) (711) (1,263)
2014* 2013 2012
EBITDA 1,522 1,208 905
EBIT 623 379 299
229 149 314
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0.628681 61% 58% 54% 50% 1.363283 0.90 0.78 1.36 0.64
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
7.195131 8.11 16.01 7.20 10.66 6.218604 7.66 6.71 5.84 7.61
Cash & Cash Equivalents Cash Flow from Ops
LINN Energy, LLC (the Company) is an independent oil and natural gas company headquartered in Houston, Texas. The Companys
core focus areas are the Mid-Continent, Permian basin, Hugoton basin, Rockies, Michigan and California.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Net Income Before Non-Recurring Items
0%
10%
20%
30%
40%
50%
60%
70%
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
140
Long Run Exploration Ltd.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
0 0 4 244 223 106
457 440 279 (8) 0 0
616 617 586 (275) (277) (196)
0 0 0 (39) (53) (90)
2014* 2013 2012
EBITDA 272 242 128
EBIT 89 71 6
56 41 31
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0.425667 42% 32% 22% 4% 5.414851 4.79 0.65 9.97 3.68
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.871089 1.97 2.63 1.87 0.43 1.67875 1.82 2.18 1.69 0.45
Cash & Cash Equivalents Cash Flow from Ops
Long Run Exploration, Ltd. (the Company) is an intermediate oil company focused on light-oil development and exploration in
western Canada. The Company is focused in three areas in Alberta, namely Triassic oil, Duvernay, and Carbonate oil.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(CAD, Millions)
Net Income Before Non-Recurring Items
0%
10%
20%
30%
40%
50%
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
141
Longview Oil Corp.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
0 0 0 64 69 65
124 119 113 (27) (28) (28)
241 241 255 (45) (40) (54)
0 0 0 (7) 1 (17)
2014* 2013 2012
EBITDA 79 74 63
EBIT 40 35 21
20 19 22
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0.340118 33% 30% 24% N/A 7.361639 6.40 4.35 8.84 N/A
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.932637 1.86 1.86 1.93 0.00 1.576413 1.58 1.79 1.59 0.00
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Longview Oil Corp. (the Company) is a Canada-based oil and natural gas production, exploitation and acquisition company in the
Western Canadian sedimentary basin. It aims to acquire and operate primarily producing crude oil properties. The Company was a
wholly owned subsidiary of Advantage Oil & Gas Ltd.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0%
5%
10%
15%
20%
25%
30%
35%
40%
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
142
Magnum Hunter Resources Corporation
RATING: NR
DESCRIPTION
OPERATING CASH FLOW
2014* 2013 2012 2014* 2013 2012
64 42 58 36 52 107
901 883 895 (42) (41) (27)
648 687 913 (526) (632) (569)
559 0 0 (532) (620) (488)
2014* 2013 2012
EBITDA 90 (31) 119
EBIT (21) (130) (17)
(42) (147) (28)
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
58% 56% 50% 33% 18% -0.29 -0.51 -0.34 -4.85 -8.26
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
25.04 16.96 8.35 10.71 42.14 9.98 13.58 7.51 35.69 -3.45
Cash & Cash Equivalents Cash Flow from Ops
Magnum Hunter Resources Corporation is an independent oil and gas company engaged in the exploration for and the exploitation,
acquisition, development and production of crude oil, natural gas and natural gas liquids resources in the United States and Canada.
KEY METRICS
BALANCE SHEET
(USD, Millions) (USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
0%
10%
20%
30%
40%
50%
60%
70%
2014* 2013 2012 2011 2010
(10.0)
(8.0)
(6.0)
(4.0)
(2.0)
0.0
2014* 2013 2012 2011 2010
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
2014* 2013 2012 2011 2010
(10.0)
(5.0)
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
143
Marathon Oil Corporation
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
1,964 264 684 5,282 5,446 4,410
6,730 6,867 7,148 (521) (508) (480)
19,805 19,344 18,283 (4,496) (4,766) (4,940)
0 0 0 265 172 (1,010)
2014* 2013 2012
EBITDA 8,486 9,273 9,590
EBIT 5,719 6,483 7,112
2,169 2,558 2,275
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
25% 26% 28% 23% 27% 22.52 22.86 22.94 18.02 10.95
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.27 1.26 1.62 1.03 1.79 0.79 0.76 0.76 0.69 1.03
Cash & Cash Equivalents Cash Flow from Ops
Marathon Oil Corporation (the Company) is an energy company with worldwide operations in the exploration and production
of liquid hydrocarbons and natural gas, oil sands mining and the production of integrated gas products. Headquartered in
Houston, Texas, the Company was formerly known as USX Corp. prior to July 2001.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
0%
5%
10%
15%
20%
25%
30%
2014* 2013 2012 2011 2010
0.0
5.0
10.0
15.0
20.0
25.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
144
Mari Petroleum Company Limited
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
70 72 53 39 66 25
22 24 25 (6) (3) (6)
164 145 206 (34) (46) (3)
0 0 0 (1) 16 16
2014*
EBITDA 84
EBIT 69
66
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
12% 16% 11% 14% 19% 15.45 37.40 16.03 13.73 12.07
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0.57 0.44 1.27 0.93 0.99 0.27 0.36 0.29 0.42 0.68
*2013 figures refer to LTM as of Dec 31, 2013
2013
55
54
53
2012
58
55
54 Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Mari Petroleum Company Limited (the Company) is an exploration and production company located in Pakistan. It operates
the countrys second largest gas reservoir at Mari Field, District Ghotki, Sindh. The Company is primarily engaged in
exploration, development and production of hydrocarbon potentials in the country.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0%
5%
10%
15%
20%
2014* 2013 2012 2011 2010
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
2014* 2013 2012 2011 2010
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
145
MEG Energy Corporation
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
890 1,179 1,475 362 253 212
4,237 4,078 2,555 0 0 0
4,706 4,788 4,871 (1,273) (2,188) (1,599)
0 0 0 (911) (1,935) (1,387)
2014*
EBITDA 394
EBIT 212.498
(5)
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
47% 46% 34% 31% 20% 1.42 0.47 0.75 2.13 1.04
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
11.72 16.12 12.06 6.09 7.97 10.75 14.72 10.79 5.76 5.86
25
92
237
2012
Cash & Cash Equivalents Cash Flow from Ops
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Net Income Before Non-Recurring Items
2013
277
88
0
MEG Energy Corporation (the Company) is a Canadian oil sands company focused on sustainable development and production in
Albertas Athabasca region. The Company owns a 50% interest in a dual pipeline system with Devon Energy Corporation.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(CAD, Millions)
0%
10%
20%
30%
40%
50%
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
146
MOL Group
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
1,058 1,014 1,434 2,185 2,194 2,281
4,439 4,759 5,054 (169) (173) (169)
9,965 10,015 10,112 (1,708) (1,007) (1,181)
0 0 0 308 1,014 932
2014*
EBITDA 3,720
EBIT 2,495
698
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
31% 32% 33% 35% 39% N/A 5.79180176 9.9438 12.0878 13.213
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.99 2.23 2.22 1.87 2.68 1.19322055 1.29452451 1.3039 1.05077 1.4455
2013
3,574
2,238
721
2012
3,876
2,610
752 Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
MOL Group (the Company) is an international, integrated oil and gas company from Hungary. In addition to the Companys
refinery and commercial position in the CEE region, increasing focus is now being given to its exploration and production
assets.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0%
10%
20%
30%
40%
50%
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
147
Murphy Oil Corporation
RATING: BBB; Stable
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
1,021 1,125 1,063 3,024 2,944 3,396
5,006 4,522 3,600 (232) (235) (714)
8,304 8,596 8,942 (3,629) (3,598) (3,553)
0 0 0 (836) (889) (1,006)
2014*
EBITDA 3,047
EBIT 1,461
896
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
38% 34% 29% 15% 19% 11.21 11.97 29.05 32.98 27.00
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.66 1.54 1.17 0.56 0.83 1.64 1.49 1.27 0.54 0.77
Cash & Cash Equivalents Cash Flow from Ops
Murphy Oil Corporation is engaged mainly in worldwide offshore oil and gas exploration and production. It also owns a U.K.
refinery and marketing operations in both the U.K. and the United States.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions) 2013
3,042
1,489
888
2012
3,265
1,889
1,204
0%
5%
10%
15%
20%
25%
30%
35%
40%
2014* 2013 2012 2011 2010
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
148
Newfield Exploration Company
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
107 95 88 1,417 1,395 1,329
3,712 3,796 3,621 0 0 0
3,250 2,956 2,780 (2,181) (2,023) (1,780)
0 0 0 (764) (628) (451)
2014*
EBITDA 1,223
EBIT 514
326
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
53% 56% 57% 47% 45% 2.51 2.04 2.54 4.21 3.98
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
2.62 2.72 2.72 2.27 1.71 3.04 3.49 2.45 2.34 2.15
Cash & Cash Equivalents Cash Flow from Ops
Newfield Exploration Company is an independent crude oil and natural gas exploration and production company headquartered
in The Woodlands, Texas. Its operations include the Mid-Continent, the Rocky Mountains, onshore Texas and the Gulf of
Mexico.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions) 2013
1,087
419
265
2012
1,476
521
319
0%
10%
20%
30%
40%
50%
60%
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
149
Niko Resources Ltd.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
82 80 64 (41) (142) (84)
375 1,225 800 0 0 (13)
901 266 901 (154) (70) (25)
0 0 0 (194) (212) (121)
2014*
EBITDA (21) (43)
EBIT (130) (160)
(7) (110)
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
59% 55% 47% 24% 20% -3.64 -3.13 -1.53 5.67 8.59
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
-9.25 -9.26 -9.57 2.37 2.56 13.76 7.17 1.41 1.04
*2013 figures refer to LTM as of Dec 31, 2013.
Cash & Cash Equivalents Cash Flow from Ops
Niko Resources Ltd. (the Company) is focused on sustained growth through successful exploration. The Company is currently
a non-government landowner in both Indonesia and Trinidad and is involved in the field of international oil and natural gas
exploration and production.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions) 2013
76
(69)
(90)
2012
0%
10%
20%
30%
40%
50%
60%
70%
2014* 2013 2012 2011 2010
(6.0)
(4.0)
(2.0)
0.0
2.0
4.0
6.0
8.0
10.0
2014* 2013 2012 2011 2010
(12.0)
(10.0)
(8.0)
(6.0)
(4.0)
(2.0)
0.0
2.0
4.0
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
150
Noble Energy Inc.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
1,354 1,117 1,387 (1,362) 3,144 2,683
5,281 5,076 4,390 (170) (198) (164)
9,361 9,184 8,258 (4,002) (3,947) (3,650)
0 0 0 (1,362) (1,001) (1,131)
2014* 2013 2012
EBITDA 3,215 3,111 2,571
EBIT 1,246 1,543 1,201
930 1,101 860
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
36% 35% 35% 39% 28% 4.18 5.53 4.35 5.72 4.85
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.61 1.61 1.64 2.08 1.62 1.97 1.63 1.71 2.36 1.80
Cash & Cash Equivalents Cash Flow from Ops
Noble Energy Inc. is an energy company with core operations onshore in the United States, in the deepwater Gulf of Mexico,
offshore in the eastern Mediterranean, and offshore in West Africa.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
0%
10%
20%
30%
40%
50%
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
151
Noreco SA
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
83 66 105 148 198 97
579 565 798 0 0 0
292 288 364 (38) (79) (195)
0 0 0 110 120 (99)
2014* 2013 2012
EBITDA (0) (56) (126)
EBIT (67) (110) (173)
5 (12) (27)
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
67% 66% 69% 62% 60% -0.89 -1.36 -2.19 -0.75 -1.45
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
3.92 4.44 29.87 4.03 9.37 -10.09 -6.41 -19.47
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Noreco SA (Noreco) is an independent Norwegian oil and gas company with focus on exploration, development and
production in the North Sea region. Noreco operates in Norway, Denmark and the United Kingdom, and employs around 70 oil
and gas professionals.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
54%
56%
58%
60%
62%
64%
66%
68%
70%
2014* 2013 2012 2011 2010
(2.5)
(2.0)
(1.5)
(1.0)
(0.5)
0.0
2014* 2013 2012 2011 2010
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
2014* 2013 2012 2011 2010
(25.0)
(20.0)
(15.0)
(10.0)
(5.0)
0.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
152
Northern Oil & Gas Inc.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
8 6 13 235 237 213
649 586 426 0 0 0
613 620 586 (403) (360) (532)
0 0 0 (168) (123) (319)
2014*
EBITDA 284 276
EBIT 151 151
44 53
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
51% 49% 42% 12% 0% 3.56 3.91 5.77 77.98
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
2.76 2.47 2.00 0.63 0.03 2.28 2.13 2.00 0.60 0.03
2013
213
114
57
2012
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Northern Oil and Gas Inc. is an oil and gas exploration and production company, and it is a Williston Basin Bakken and Three
Forks pure play in western North Dakota and eastern Montana.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0%
10%
20%
30%
40%
50%
60%
2014* 2013 2012 2011 2010
0.0
20.0
40.0
60.0
80.0
100.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
153
NuVista Energy Ltd.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
0 2 0 285 66 59
109 22 42 0 0 0
705 708 656 (282) (224) (116)
0 0 0 3 (158) (57)
2014* 2013 2012
EBITDA 106 86 81
EBIT 20 3 (38)
(211) (20) (1)
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
13% 3% 6% 29% 36% 2.52 0.32 -3.21 0.50 0.91
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0.38 0.08 0.71 2.08 2.80 1.03 0.26 0.51 1.83 2.55
Cash & Cash Equivalents Cash Flow from Ops
NuVista Energy Ltd. is a company engaged in exploration, development and production activities on properties located in three
operating regions of the Western Canadian Sedimentary Basin.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(CAD, Millions)
0%
5%
10%
15%
20%
25%
30%
35%
40%
2014* 2013 2012 2011 2010
(4.0)
(3.0)
(2.0)
(1.0)
0.0
1.0
2.0
3.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
154
OAO Gazprom
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
20,957 20,957 14,253 59,534 59,534 43,541
54,798 54,798 49,265 (4,308) (4,308) (7,326)
292,991 292,991 342,712 (43,858) (43,858) (43,858)
0 0 0 11,368 11,368 (91)
2014* 2012
EBITDA 64,650 62,876
EBIT 51,498 43,743
37,639 24,676
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
16% 16% 13% 13% 14% 48.156659 48.1567 22.027733 26.3076 18.025
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0.920461351 0.9204614 1.13147 0.99886 0.95369 0.8476211 0.84762 0.7835318 0.6672 0.8165
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
OAO Gazprom is a global energy company headquartered in Russia Federation. Its major business lines are geological exploration,
production, transportation, storage, processing and sales of gas, gas condensate and oil, sales of gas as a vehicle fuel as well as
generation and marketing of heat and electric power.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
2013
64,650
51,498
37,639
Cash & Cash Equivalents Cash Flow from Ops
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Net Income Before Non-Recurring Items
0%
5%
10%
15%
20%
2014* 2013 2012 2011 2010
0.0
10.0
20.0
30.0
40.0
50.0
60.0
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
2014* 2013 2012 2011 2010
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
155
OAO Lukoil
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
2,326 1,712 2,914 16,778 17,512 16,698
12,904 11,745 7,335 (2,500) (2,383) (2,800)
80,567 78,855 74,188 (14,761) (14,957) (11,647)
0 0 0 (483) 172 2,251
2014* 2013 2012
EBITDA 18,800 18,878 19,020
EBIT 12,901 13,122 14,188
9,767 9,988 11,421
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
14% 13% 9% 13% 17% 24.30 26.89 26.37 21.94 17.02
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0.77 0.67 0.44 0.58 0.87 0.69 0.62 0.39 0.51 0.77
Cash & Cash Equivalents Cash Flow from Ops
OAO Lukoil is an international vertically-integrated oil & gas company, accounting for 2.1% of global output of crude oil.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Net Income Before Non-Recurring Items
0%
5%
10%
15%
20%
2014* 2013 2012 2011 2010
0.0
5.0
10.0
15.0
20.0
25.0
30.0
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
156
Oasis Petroleum Inc.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
56 92 239 405 722 12,099
2,277 2,553 8,571 0 0 0
1,520 1,349 40,048 (1,116) (894) (1,053)
0 0 0 (712) (171) (618)
2014*
EBITDA 540 813 487
EBIT 309 506 9,210
129 229 129
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
60% 65% 60% 56% 1% 3.31 4.52 3.82 4.78
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
5.63 3.53 2.80 3.89 0.07 4.21 3.14 2.50 3.51 0.07
2013 2012
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Oasis Petroleum Inc. (the Company) is an independent exploration and production company focused on the acquisition and
development of unconventional oil and natural gas resources. The Company has its operations in the Bakken Shale, located in
Montana and North Dakota.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0%
10%
20%
30%
40%
50%
60%
70%
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
157
Occidental Petroleum Corporation
RATING: A; Stable
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
2,332 3,393 1,592 12,719 12,722 12,099
7,723 7,785 8,571 (2,067) (1,553) (2,128)
43,369 43,372 40,048 (9,236) (9,037) (10,226)
0 0 0 1,416 2,132 (255)
2014* 2013 2012
EBITDA 14,232 14,087 13,721
EBIT 8,878 8,740 9,210
5,630 5,602 5,770
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
15% 15% 18% 15% 16% 33.76 32.49 36.26 48.15 37.63
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0.61 0.61 0.71 0.55 0.70 0.54 0.55 0.62 0.47 0.56
Cash & Cash Equivalents Cash Flow from Ops
Occidental Petroleum Corporation is a U.S.-concentrated oil and gas producer. It is also involved in manufacturing operations,
midstream marketing and commodities trading.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
0%
5%
10%
15%
20%
2014* 2013 2012 2011 2010
0.0
10.0
20.0
30.0
40.0
50.0
60.0
2014* 2013 2012 2011 2010
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
2014* 2013 2012 2011 2010
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
158
Oil & Gas Development Company Limited
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
131 27 40 1,027 992 1,208
0 0 0 (330) (349) (341)
3,796 3,237 2,818 (402) (310) (234)
0 0 0 295 334 633
2014* 2012
EBITDA 1,649 1,633
EBIT 1,500 1,473
1,022 1,080
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0% 0% 0% 0% 0% N/A N/A N/A N/A N/A
Adjusted Debt-to-Cash Flow Adjusted Debt-to-EBITDA
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
*2013 figures refer to LTM as of Dec 31, 2013.
2013
1,590
1,441
934 Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Oil & Gas Development Company Limited (the Company), headquartered in Islamabad Pakistan, explores, develops, produces,
and sells oil and gas resources. The Company primarily produces crude oil, gas, liquefied petroleum gas, and sulphur.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0.00%
0.01%
0.01%
0.02%
0.02%
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
2014* 2013 2012 2011 2010
0.000%
0.005%
0.010%
0.015%
0.020%
0.025%
0.030%
0.035%
2014* 2013 2012 2011 2010
0.00%
0.01%
0.01%
0.02%
0.02%
0.03%
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
159
OMV Aktiengesellschaft
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
1,153 1,153 1,618 4,557 4,565 4,535
7,687 7,271 7,141 (805) (833) (805)
20,363 20,042 19,158 (3,674) (6,316) (3,195)
0 0 0 78 (2,583) 535
2014* 2012
EBITDA 6,228 6,325
EBIT 4,073 4,260
1,467 2,115
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
27% 28% 28% 29% 37% 13.66 15.98 17.51 10.54 13.09
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.63 1.64 1.56 1.81 2.23 1.21 1.29 1.15 1.29 1.82
2013
6,019
3,887
2,718 Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
OMV Aktiengesellschaft is active in two core countries, Romania and Austria, in terms of exploration and production, and
holds a balanced international portfolio.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0%
5%
10%
15%
20%
25%
30%
35%
40%
2014* 2013 2012 2011 2010
0.0
5.0
10.0
15.0
20.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
160
Pacific Rubiales Energy Corp.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
306 633 244 1,881 1,913 1,388
7,295 4,476 1,327 (212) (196) (130)
4,141 4,227 3,974 (2,194) (2,151) (1,512)
0 0 0 (526) (434) (254)
INCOME STATEMENT
(USD, Millions) 2014* 2013 2012
EBITDA 2,599 2,564 2,002
EBIT 1,177 1,184 1,150
Net Income Before Non-Recurring Items 458 477 573
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
64% 41% 25% 28% 29% 8.60 9.64 24.95 25.35 11.55
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
3.88 1.80 0.96 0.84 1.27 2.81 1.75 0.66 0.60 0.94
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
KEY RATIOS
Cash & Cash Equivalents Cash Flow from Ops
Pacific Rubiales Energy Corp. (the Company) is a conventional oil and gas company that engages in the exploration,
development and production of oil and natural gas in Colombia, Peru and Guatemala. It also operates oil pipelines in Colombia.
The Company is headquartered in Toronto.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0%
10%
20%
30%
40%
50%
60%
70%
2014* 2013 2012 2011 2010
0.0
5.0
10.0
15.0
20.0
25.0
30.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
161
Painted Pony Petroleum Ltd.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
0 0 78 44 51 39
39 37 4 0 0 0
559 556 550 (112) (143) (119)
0 0 0 (68) (92) (80)
(CAD, Millions) 2014* 2013 2012
EBITDA 37 46 31
EBIT (2) 3 (9)
Net Income Before Non-Recurring Items 1 (6) (6)
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
7% 6% 1% 1% 2% -5.58 3.41 -25.52 50.71 48.23
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0.89 0.72 0.10 0.10 0.11 1.06 0.80 0.12 0.09 0.10
Cash & Cash Equivalents Cash Flow from Ops
Painted Pony Petroleum Ltd. is a Canadian public resource company based in Calgary, Alberta, with operations in Saskatchewan,
Alberta and British Columbia.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
0%
1%
2%
3%
4%
5%
6%
7%
2014* 2013 2012 2011 2010
(40.0)
(20.0)
0.0
20.0
40.0
60.0
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
162
Pakistan Petroleum Limited
RATING: NR
DESCRIPTION
BALANCE SHEET
2014* 2013 2012 2014 2013 2012
33 81 18 957 1,119 786
3 3 3 (180) (173) (100)
1,707 1,507 1,316 (244) (223) (102)
0 0 0 533 722 584
2014* 2012
EBITDA 684 720
EBIT 601 644
413 418
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0.19% 0.21% 0.21% 0.25% 1.74% 147.43 150.51 322.72 231.96 223.55
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0.00 0.00 0.00 0.00 0.03 0.00 0.00 0.00 0.00 0.04
Cash & Cash Equivalents Cash Flow from Ops
Pakistan Petroleum Limited is a supplier of natural gas in addition to producing crude oil, natural gas liquids and liquefied petroleum
gas.
KEY METRICS
OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions) 2013
692
614
429
0.0%
0.5%
1.0%
1.5%
2.0%
2014* 2013 2012 2011 2010
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
2014* 2013 2012 2011 2010
0.00
0.01
0.02
0.03
2014* 2013 2012 2011 2010
0.00
0.01
0.02
0.03
0.04
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
163
Pan Orient Energy Corp.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
(23) 42 134 23 9 11
4 4 3 0 0 (43)
248 242 326 (78) (101) (78)
0 0 0 (55) (92) (110)
2014* 2013 2012
EBITDA 20 21 39
EBIT 5 7 26
(203) (203) 16
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.76% 1.80% 1.03% 1.10% 1.20% N/A N/A N/A N/A N/A
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0.20 0.48 0.31 0.08 0.05 0.23 0.21 0.09 0.06 0.03
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(CAD, Millions)
Net Income Before Non-Recurring Items
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Pan Orient Energy Corp. (the Company) is a Canadian junior oil and natural gas company based in Calgary, Alberta. The
Company owns on-shore properties in Thailand and Indonesia, as well as Canadian oil sand properties.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
0.0%
0.5%
1.0%
1.5%
2.0%
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
2014* 2013 2012 2011 2010
0.0
0.1
0.2
0.3
0.4
0.5
0.6
2014* 2013 2012 2011 2010
0.00
0.05
0.10
0.15
0.20
0.25
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
164
Parallel Energy Trust
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
0 0 0 43 40 33
234 223 208 (28) (29) (44)
294 286 281 (9) (9) (25)
0 0 0 5 2 (36)
2014*
EBITDA 53 50
EBIT 19 15
8 5
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
44% 44% 43% 16% N/A 1.70 1.45 0.63 6.16 N/A
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
5.51 5.61 6.35 2.81 0.00 4.41 4.44 5.85 2.95 N/A
2013
35
4
6
2012
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(CAD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Parallel Energy Trust (the Trust) is an unincorporated open-ended limited purpose trust. The Trusts objective is to create
returns for investors through the acquisition and development of conventional oil and natural gas reserves and production
with unexploited potential, located in certain regions of the United States.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
0%
10%
20%
30%
40%
50%
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
165
Paramount Resources Ltd.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
16 11 147 63 21 34
1,119 973 718 0 0 0
1,065 1,032 851 (737) (736) (624)
0 0 0 (673) (715) (590)
2014
EBITDA 96 72
EBIT (51) (74)
(83) (101)
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
51% 49% 46% 37% 33% -0.75 -1.13 -3.13 -2.02 -4.83
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
17.66 46.59 21.33 6.72 4.13 11.64 13.42 22.31 5.69 9.16
2013
32
(111)
19
2012
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(CAD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Paramount Resources Ltd. (the Company) is engaged in the exploration, development, production, processing, transportation
and marketing of natural gas, crude oil and natural gas liquids in Western Canada, as well as Montana and North Dakota,
United States. The Company is headquartered in Calgary.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
0%
10%
20%
30%
40%
50%
60%
2014* 2013 2012 2011 2010
(6.0)
(5.0)
(4.0)
(3.0)
(2.0)
(1.0)
0.0
2014* 2013 2012 2011 2010
0.0
10.0
20.0
30.0
40.0
50.0
2014* 2013 2012 2011 2010
0.0
5.0
10.0
15.0
20.0
25.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
166
Parex Resources Inc.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
40 56 32 251 271 243
76 85 82 0 0 0
500 485 465 (273) (221) (268)
0 0 0 (22) 50 (25)
2014* 2013 2012
EBITDA 318 326 292
EBIT 131 111 111
62 51 65
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
13% 13% 15% 14% 3% 27.95 8.87 24.04 17.45 N/A
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0.30 0.27 0.34 0.67 -0.73 0.24 0.23 0.28 0.64 -0.55
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Parex Resources Inc. (Parex) is an oil and gas exploration company with a portfolio of high impact prospects in the prolific
Llanos Basin and Middle Magdalena Basin of Colombia and onshore Trinidad and Tobago. Headquartered in Calgary, Alberta,
Parex holds interests in 17 onshore exploration blocks.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0%
2%
4%
6%
8%
10%
12%
14%
16%
2014* 2013 2012 2011 2010
0.0
5.0
10.0
15.0
20.0
25.0
30.0
2014* 2013 2012 2011 2010
(1.0)
(0.8)
(0.6)
(0.4)
(0.2)
0.0
0.2
0.4
0.6
0.8
2014* 2013 2012 2011 2010
(0.8)
(0.6)
(0.4)
(0.2)
0.0
0.2
0.4
0.6
0.8
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
167
PDC Energy, Inc.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
147 193 2 225 208 164
667 672 692 0 0 0
666 968 703 (469) (395) (348)
0 0 0 (244) (187) (184)
(USD, Millions) 2014* 2013 2012
EBITDA 254 216 120
EBIT 108 89 (27)
Net Income Before Non-Recurring Items 58 65 57
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
41% 41% 50% 45% 32% 2.03 1.65 -0.54 0.52 -0.39
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
2.96 3.23 4.22 3.27 2.32 2.63 3.11 5.76 3.68 3.25
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
PDC Energy (the Company) is a 40-year old independent natural gas and oil company. The Company operates in Colorado,
Ohio, and West Virginia.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0%
10%
20%
30%
40%
50%
60%
2014* 2013 2012 2011 2010
(1.0)
(0.5)
0.0
0.5
1.0
1.5
2.0
2.5
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
168
Pengrowth Energy Corporation
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
315 449 3 557 561 494
1,276 1,651 1,860 (249) (248) (289)
3,528 3,688 4,190 (770) (703) (472)
0 0 0 (463) (390) (267)
2014* 2013 2012
EBITDA 745 704 641
EBIT 195 129 73
10 (21) (13)
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
33% 31% 31% 25% 26% 2.18 1.37 0.85 3.36 3.55
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
3.06 2.94 3.77 1.83 1.89 2.29 2.35 2.90 1.59 1.65
Cash & Cash Equivalents Cash Flow from Ops
Pengrowth Energy Corporation (the Company) is an oil and gas producer headquartered in Calgary, Alberta. The Company
explores for crude oil, natural gas and liquids in Alberta, British Columbia, Saskatchewan and Nova Scotia.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(CAD, Millions)
0%
5%
10%
15%
20%
25%
30%
35%
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
169
Penn Virginia Corporation
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
10 23 18 242 235 191
1,276 1,292 661 (7) (7) (5)
808 789 895 (578) (504) (371)
1 1 1 (343) (276) (185)
(USD, Millions) 2014* 2013 2012
EBITDA 324 286 177
EBIT 58 40 (30)
Net Income Before Non-Recurring Items (140) (144) 4
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
61% 62% 42% 47% 38% 0.62 0.48 -0.49 -0.93 -0.97
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
5.27 5.49 3.45 4.91 3.59 3.94 4.52 3.74 7.07 7.33
Cash & Cash Equivalents Cash Flow from Ops
Penn Virginia Corporation (the Company) is an independent oil and gas company engaged primarily in the exploration,
development and production of oil, natural gas liquids and natural gas in various domestic onshore regions of the United
States, with a primary focus in Texas, and to a lesser extent, the Mid-Continent, Mississippi and the Marcellus Shale in
Appalachia. The Company is headquartered in Radnor, PA.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
0%
10%
20%
30%
40%
50%
60%
70%
2014* 2013 2012 2011 2010
(1.5)
(1.0)
(0.5)
0.0
0.5
1.0
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
170
Penn West Petroleum Ltd.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
0 0 0 1,005 988 1,056
2,611 2,806 3,062 (313) (360) (395)
7,562 7,710 8,874 (594) (816) (1,752)
0 0 0 98 (188) (1,091)
2014* 2013 2012
EBITDA 1,234 1,159 1,359
EBIT 268 109 111
199 163 (3)
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
26% 28% 26% 29% 25% 1.49 0.77 0.53 3.21 1.65
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
2.60 3.44 2.90 2.57 4.12 2.12 2.36 2.27 2.09 2.18
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(CAD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Penn West Petroleum Ltd. is a petroleum and natural gas exploration and production company with reserves located in Western
Canada and the United States. The Company was formerly known as Penn West Energy Trust.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
0%
5%
10%
15%
20%
25%
30%
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
171
Perpetual Energy Inc.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
2 0 2 36 39 35
379 383 389 0 0 0
58 98 36 (92) (95) (80)
0 0 0 (56) (56) (44)
2014* 2013 2012
EBITDA 68 70 69
EBIT 30 (28) (12)
36 (43) (49)
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
83% 80% 92% 87% N/A -0.41 -0.87 -0.34 -0.33 -4.14
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
6.34 9.72 11.05 8.22 1.94 4.54 5.49 9.98 6.56 4.49
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(CAD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Perpetual Energy Inc. (the Company) is an independent energy company that is involved in the acquisition, exploration
and development of oil and gas properties in Alberta. The Company was formerly known as Paramount Energy Trust prior
to June 2010.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
0%
20%
40%
60%
80%
100%
2014* 2013 2012 2011 2010
(5.0)
(4.0)
(3.0)
(2.0)
(1.0)
0.0
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
172
Petrobras
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2012 2011
34,685 19,753 23,951 29,146 30,901 34,434
224,265 201,194 195,387 (2,656) (2,656) (3,272)
157,214 149,123 169,039 (44,683) (45,309) (40,671)
0 0 0 (18,193) (17,064) (9,509)
2014* 2013 2012
EBITDA 31,249 32,419 32,590
EBIT 18,246 19,231 21,471
14,574 15,563 16,694
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
59% 57% 54% 47% 42% 3.32 3.50 4.17 6.49 7.54
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
7.69 6.51 5.67 3.93 3.98 7.18 6.21 6.00 3.79 3.42
Cash & Cash Equivalents Cash Flow from Ops
Petrobras (the Company) is a semi-public Brazilian multinational energy corporation headquartered in Rio de Janeiro, Brazil and was
founded in 1953. The Company owns oil refineries and oil tankers and is engaged in development of advanced technology from deep-
water and ultra-deep water oil production.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
0%
10%
20%
30%
40%
50%
60%
70%
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
173
PetroChina Company Ltd.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
8,544 8,492 6,965 51,516 52,198 51,764
96,491 77,346 56,690 (10,176) (9,576) (10,382)
213,440 209,793 189,510 (50,839) (49,464) (49,380)
0 0 0 (9,499) (6,842) (7,997)
2014* 2013 2012
EBITDA 51,590 52,780 51,399
EBIT 27,380 26,835 27,554
20,900 21,223 21,410
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
31% 30% 29% 25% 20% 9.43 7.15 9.58 17.39 31.04
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.85 1.66 1.47 1.11 0.84 1.87 1.67 1.50 1.15 0.87
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
PetroChina Company Ltd. (the Company) is a Chinese oil and gas company and is the listed arm of state-owned China National
Petroleum Corporation (CNPC), headquartered in Beijing. The Company is mainly engaged in the production and sale of oil and gas
related products.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0%
5%
10%
15%
20%
25%
30%
35%
2014* 2013 2012 2011 2010
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
174
PEYTO Exploration & Development Corp.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
0 0 0 472 419 296
773 889 590 (137) (128) (101)
1,345 1,201 1,210 (588) (578) (430)
0 0 0 (253) (287) (235)
(CAD, Millions) 2014* 2013 2012
EBITDA 529 469 334
EBIT 287 244 162
Net Income Before Non-Recurring Items 168 143 91
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
36% 43% 33% 32% 30% 8.58 7.87 6.37 9.63 8.64
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.64 2.12 1.99 1.63 1.77 1.46 1.90 1.77 1.40 1.41
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Peyto Exploration & Development Corp. (the Company) is engaged in the exploration and development of gas properties. The
Company has operations located halfway between the Northwest Territories and the U.S.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
0%
10%
20%
30%
40%
50%
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
175
PGNiG S.A.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
1,216 937 629 1,986 1,860 1,294
2,064 2,558 3,317 (243) (243) (0)
9,746 9,434 8,795 (1,030) (1,040) (1,165)
0 0 0 713 578 128
(USD, Millions) 2014* 2013 2012
EBITDA 2,127 1,986 1,629
EBIT 1,319 1,207 993
Net Income Before Non-Recurring Items 916 718 752
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
17% 21% 27% 17% 9% 15.34 14.04 10.24 46.14
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.04 1.38 2.56 1.30 0.60 1.28 0.88 0.85 0.82 0.62
Cash & Cash Equivalents Cash Flow from Ops
PGNiG S.A. is a Polish oil and gas exploration and production company engaged in the trade, distribution, oil and gas exploration
and production as well as gas storage and processing in Poland.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
0%
5%
10%
15%
20%
25%
30%
2014* 2013 2012 2011 2010
0.0
10.0
20.0
30.0
40.0
50.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
176
Pine Cliff Energy Ltd.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
9 1 1 21 10 2
0 0 3 0 0 0
134 129 71 (11) (12) (2)
0 0 0 11 (2) (1)
(CAD, Millions) 2014* 2013 2012
EBITDA 22 14 1
EBIT (0) (2) (1)
Net Income Before Non-Recurring Items 3 2 (1)
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0% 0% 15% 0% 0% 7.52 -6.86 -2.30 N/A N/A
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0.00 0.02 1.78 0.00 0.00 0.00 0.01 2.10 0.00 0.00
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Pine Cliff Energy Ltd. (the Company) engages in the exploration, development, and production of natural gas, crude oil, and
natural gas liquids primarily in Canada. The Company primarily holds interest in the Carrot Creek assets in the Western
Canadian Sedimentary Basin, and the Southern Alberta assets.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
0%
5%
10%
15%
20%
2014* 2013 2012 2011 2010
(8.0)
(6.0)
(4.0)
(2.0)
0.0
2.0
4.0
6.0
8.0
10.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
177
Pinecrest Energy Inc.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
0 0 0 41 55 72
119 123 61 0 0 0
165 165 333 (32) (85) (202)
0 0 0 8 (30) (130)
(CAD, Millions) 2014* 2013 2012
EBITDA 34 41 68
EBIT (3) (3) 35
Net Income Before Non-Recurring Items (1) 5 34
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
42% 43% 15% 1% 1% -0.48 0.92 26.04 45.78 -4.00
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
2.92 2.24 0.85 0.04 -6.45 3.47 2.57 0.92 0.06 -1.70
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Pinecrest Energy Inc. is a Calgary, Alberta based petroleum and natural gas exploration, production and development company,
with operations in the Canadian provinces of Alberta and Saskatchewan.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
0%
10%
20%
30%
40%
50%
2014* 2013 2012 2011 2010
(10.0)
0.0
10.0
20.0
30.0
40.0
50.0
2014* 2013 2012 2011 2010
(8.0)
(6.0)
(4.0)
(2.0)
0.0
2.0
4.0
2014* 2013 2012 2011 2010
(2.0)
(1.0)
0.0
1.0
2.0
3.0
4.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
178
Pioneer Natural Resources Company
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
257 393 229 2,213 2,052 1,738
2,858 2,805 3,866 (11) (11) (10)
6,724 6,615 5,867 (2,835) (2,876) (3,352)
0 0 0 (633) (835) (1,624)
2014* 2013 2012
EBITDA 1,652 1,934 1,524
EBIT 1,161 1,027 714
1,383 1,197 697
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
30% 30% 40% 32% 51% 4.38 5.96 4.08 4.66 2.31
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.29 1.37 2.16 1.81 4.11 1.73 1.44 2.58 2.11 4.87
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Pioneer Natural Resources Company (the Company) is an independent company involved in the exploration and production of
oil and gas, and natural gas liquids in the United States and South Africa. The Company is headquartered in Irving, Texas.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0%
10%
20%
30%
40%
50%
60%
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
179
PT Medco Energi Internasional Tbk
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
374 264 524 269 302 249
1,191 1,084 1,350 (31) (3) (31)
914 898 843 240 223 191
0 0 0 (1) 75 27
INCOME STATEMENT
(USD, Millions) 2014* 2013 2012
EBITDA 342 347 343
EBIT 262 246 260
Net Income Before Non-Recurring Items 39 67 49
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
57% 53% 62% 60% 55% 2.83 3.19 2.73 2.88 1.32
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
4.43 3.42 5.43 7.38 8.79 3.48 2.97 3.94 3.99 4.30
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
Cash & Cash Equivalents Cash Flow from Ops
PT Medco Energi Internasional Tbk (Medco Energi) is an Indonesian company operating in the oil & gas exploration and
production business listed on the Jakarta Stock Exchange since 1994. Currently, Medco Energi is focused on oil & gas
exploration, development and production, and power generation.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0%
10%
20%
30%
40%
50%
60%
70%
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
180
QEP Resources, Inc.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
4 12 0 1,358 1,326 1,170
3,962 3,041 3,247 (24) (24) (21)
3,916 3,877 3,314 (1,531) (1,562) (1,399)
0 0 0 (196) (259) (250)
2014* 2013 2012
EBITDA 1,498 1,392 911
EBIT 496 376 6
367 281 203
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
50% 44% 49% 34% 34% 2.95 2.27 -0.01 7.77 6.77
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
2.92 2.28 2.78 1.30 1.46 2.64 2.19 3.59 1.15 1.26
Cash & Cash Equivalents Cash Flow from Ops
QEP Resources, Inc. engages in the domestic oil and natural gas exploration and production industry, with operations focused in
the Rocky Mountain and Midcontinent regions of the U.S. Its activities include drilling, completing and equipping oil and natural
gas wells for itself and its partners.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
0%
10%
20%
30%
40%
50%
60%
2014* 2013 2012 2011 2010
(2.0)
0.0
2.0
4.0
6.0
8.0
10.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
181
Questerre Energy Corporation
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
42 47 43 12 13 10
2 2 2 0 0 0
244 241 217 (29) (52) (43)
0 0 0 (17) (39) (32)
(CAD, Millions) 2014* 2013 2012
EBITDA 11 13 9
EBIT 1 4 (1)
Net Income Before Non-Recurring Items 8 5 6
KEY RATIOS
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1% 1% 1% 1% 0% N/A N/A N/A N/A N/A
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0.16 0.14 0.19 0.19 0.13 0.18 0.15 0.22 0.20 0.19
Cash & Cash Equivalents Cash Flow from Ops
Questerre Energy Corporation (the Company) is an independent energy company focused on unconventional oil and gas
projects. The Company has base production and reserves in the tight oil bakken and Torquay of southeast Saskatchewan.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
2014* 2013 2012 2011 2010
0.00
0.05
0.10
0.15
0.20
0.25
2014* 2013 2012 2011 2010
0.00
0.05
0.10
0.15
0.20
0.25
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
182
Quicksilver Resources Inc.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
167 89 5 (42) (17) 209
2,010 2,012 2,092 0 0 0
(1,075) (1,006) (1,133) (113) (101) (485)
0 0 0 (154) (118) (276)
2014* 2013 2012
EBITDA 156 157 267
EBIT 97 94 103
135 155 285
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
61% 64% 0.38 0.36 0.57 0.94 1.83
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
-48.30 -119.62 9.99 9.16 13.89 12.90 12.85 7.83 4.75 3.41
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Quicksilver Resources Inc. focuses on development of unconventional natural gas and oil reservoirs found in fractured shale gas
and coal seams in North America.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
58%
59%
60%
61%
62%
63%
64%
65%
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2014* 2013 2012 2011 2010
(140.0)
(120.0)
(100.0)
(80.0)
(60.0)
(40.0)
(20.0)
0.0
20.0
40.0
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
183
Raging River Exploration Inc.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
0 0 9 143 117 34
66 51 7 0 0 0
405 379 257 (203) (168) (86)
0 0 0 (59) (51) (52)
(CAD, Millions) 2014* 2013 2012
EBITDA 162 126 34
EBIT 99 71 15
Net Income Before Non-Recurring Items 63 45 11
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
14% 12% 3% N/A N/A 52.64 64.67 28.27 N/A N/A
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0.46 0.43 0.20 0.00 0.00 0.41 0.40 0.20 N/A N/A
Cash & Cash Equivalents Cash Flow from Ops
Raging River Exploration Inc. (Raging River) engages in the exploration, development, and production of oil and gas properties in
western Canada. It primarily focuses its operations on the Dodsland light oil play in southwestern Saskatchewan. Raging River is
headquartered in Calgary, Canada.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
0%
2%
4%
6%
8%
10%
12%
14%
16%
2014* 2013 2012 2011 2010
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
2014* 2013 2012 2011 2010
0.0
0.1
0.2
0.3
0.4
0.5
2014* 2013 2012 2011 2010
0.0
0.1
0.1
0.2
0.2
0.3
0.3
0.4
0.4
0.5
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
184
Range Resources Corporation
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
0 0 0 844 759 654
277 3,260 2,959 (26) (26) (26)
450 2,414 2,357 (1,308) (1,297) (1,694)
0 0 0 (490) (564) (1,066)
(USD, Millions) 2014* 2013 2012
EBITDA 149 873 777
EBIT 39 380 332
Net Income Before Non-Recurring Items 275 118 145
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
58% 57% 56% 46% 48% 3.12 2.15 1.97 3.01 2.33
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
3.97 4.30 4.52 3.15 4.85 3.14 3.74 3.81 2.86 4.15
Cash & Cash Equivalents Cash Flow from Ops
Range Resources Corporation (Range) is an independent oil and gas exploration and production company based in Fort Worth,
Texas. Range produces shale gas from the Devonian-aged Marcellus Shale in Pennsylvania.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
0%
10%
20%
30%
40%
50%
60%
70%
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
185
Renegade Petroleum Ltd.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
0 0 0 124 93 46
277 273 283 (66) (36) 0
450 363 487 (64) (86) (120)
0 0 0 (6) (29) (74)
(CAD, Millions) 2014* 2013 2012
EBITDA 149 104 52
EBIT 39 22 5
Net Income Before Non-Recurring Items 4 4 (6)
KEY RATIOS
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
38% 43% 37% 24% 18% 1.93 1.73 1.30 4.34 -3.76
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
2.23 2.94 6.14 1.83 4.25 1.86 2.63 5.47 1.76 2.74
Cash & Cash Equivalents Cash Flow from Ops
Renegade Petroleum Ltd. (Renegade) is an exploitation and exploration focused light oil producer. Renegade's primary focus areas
are located in southeast Saskatchewan in various pools, such as Bakken, Souris Valley, Frobisher, Midale and Kisby, as well as the
Dodsland area of the Viking play in west-central Saskatchewan.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
0%
10%
20%
30%
40%
50%
2014* 2013 2012 2011 2010
(6.0)
(4.0)
(2.0)
0.0
2.0
4.0
6.0
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
186
Repsol, S.A.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
6,113 10,243 7,783 5,978 5,943 5,892
16,821 26,093 23,242 (1,288) (701) (1,217)
38,815 38,614 40,416 (4,572) (4,566) (4,381)
0 143 4,195 118 675 294
2014* 2013 2012
EBITDA 15,424 14,984 15,710
EBIT 12,214 11,585 12,499
1,989 1,757 2,007
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
30% 45% 37% 44% 42% 8.82 9.06 9.97 17.26 17.71
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
2.71 4.75 3.84 3.70 3.32 1.11 1.68 1.44 1.38 1.19
Cash & Cash Equivalents Cash Flow from Ops
Repsol S.A. is a Spanish multinational oil and gas company based in Madrid, Spain. It operates in all areas of the oil and gas
industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and
trading.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
0%
10%
20%
30%
40%
50%
2014* 2013 2012 2011 2010
0.0
5.0
10.0
15.0
20.0
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
187
Resolute Energy Corporation
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
1 0 1 134 123 91
728 743 584 0 0 0
531 534 532 (271) (522) (500)
0 0 0 (88) (399) (409)
(USD, Millions) 2014* 2013 2012
EBITDA 179 170 119
EBIT 55 54 40
Net Income Before Non-Recurring Items 75 74 (10)
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
58% 58% 52% 27% 27% 1.13 1.20 1.99 11.17 5.82
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
5.45 6.05 6.40 1.92 1.95 4.08 4.36 4.93 1.66 1.89
Cash & Cash Equivalents Cash Flow from Ops
Resolute Energy Corporation (Resolute) is a private company engaged in the acquisition, development and production of
domestic oil and gas. Resolute's primary producing assets are its properties in Aneth Field, located in the Paradox Basin in
southeast Utah and Hilight Field, a conventional gas field in the Powder River Basin of northeastern Wyoming.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
0%
10%
20%
30%
40%
50%
60%
70%
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
188
RMP Energy Inc.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
0 0 0 94 78 50
141 93 75 0 0 0
318 304 222 (191) (174) (111)
0 0 0 (98) (96) (61)
(CAD, Millions) 2014* 2013 2012
EBITDA 100 82 50
EBIT 41 27 4
Net Income Before Non-Recurring Items 24 15 3
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
31% 23% 25% 16% 4% 12.27 8.59 1.67 -23.43 -2.53
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.50 1.19 1.49 2.47 0.55 1.41 1.14 1.49 2.08 0.39
Cash & Cash Equivalents Cash Flow from Ops
RMP Energy Inc. is an oil and gas company with assets concentrated in West Central Alberta and southeastern Saskatchewan.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
0%
5%
10%
15%
20%
25%
30%
35%
2014* 2013 2012 2011 2010
(30.0)
(25.0)
(20.0)
(15.0)
(10.0)
(5.0)
0.0
5.0
10.0
15.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
189
Rock Energy Inc.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
0 0 3 42 30 12
22 12 4 0 0 0
100 117 118 (54) (47) (31)
0 0 0 (12) (17) (19)
(CAD, Millions) 2014* 2013 2012
EBITDA 42 29 6
EBIT 9 1 (14)
Net Income Before Non-Recurring Items 2 1 (7)
KEY RATIOS
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
15% 9% 3% 21% 21% 26.21 2.52 -65.52 -4.72 5.19
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0.42 0.41 0.32 1.87 1.08 0.52 0.41 0.57 1.71 1.11
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Rock Energy Inc. is an exploration and production company. Its current assets are primarily heavy oil properties in the Plains area
and Southwest Saskatchewan.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
0%
5%
10%
15%
20%
25%
2014* 2013 2012 2011 2010
(80.0)
(60.0)
(40.0)
(20.0)
0.0
20.0
40.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
190
Rosetta Resources Inc.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
55 194 37 565 558 408
1,675 1,615 451 0 0 0
1,385 1,348 804 (964) (871) (622)
0 0 0 (399) (313) (214)
2014* 2013 2012
EBITDA 597 572 393
EBIT 349 353 239
199 216 147
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
55% 54% 36% 31% 41% 5.40 6.33 9.46 7.22 2.65
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
2.96 2.89 1.10 0.94 2.07 2.80 2.82 1.15 0.95 1.97
Cash & Cash Equivalents Cash Flow from Ops
Rosetta Resources Inc. is an independent oil and gas company based in Houston, and is engaged in the exploration,
development and exploitation of onshore energy resources in the U.S.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Net Income Before Non-Recurring Items
0%
10%
20%
30%
40%
50%
60%
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
191
Rosneft
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
6,254 8,366 9,795 29,127 26,551 15,671
68,511 75,077 33,481 (2,671) (2,671) (2,289)
92,134 96,279 76,069 (17,448) (17,596) (15,026)
0 0 0 9,008 6,284 (1,644)
2014* 2013 2012
EBITDA 33,262 29,379 18,637
EBIT 19,783 17,062 11,318
16,218 17,728 9,061
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
43% 44% 31% 28% 30% 8.18 7.05 11.44 20.59 17.67
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
2.35 3.06 2.22 1.37 1.60 2.06 2.56 1.77 1.16 1.30
Cash & Cash Equivalents Cash Flow from Ops
Rosneft (the Company) is a publicly traded oil and gas company based in Russia. The Company is primarily engaged in
exploration and production of hydrocarbons, production of petroleum products and petrochemicals, and marketing of outputs.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Net Income Before Non-Recurring Items
0%
10%
20%
30%
40%
50%
2014* 2013 2012 2011 2010
0.0
5.0
10.0
15.0
20.0
25.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
192
Royal Dutch Shell plc
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
11,924 9,696 18,550 39,036 37,452 42,749
45,729 79,446 67,298 (7,048) (7,450) (7,682)
183,130 181,148 176,182 (39,680) (40,145) (32,576)
0 0 0 (7,692) (10,143) 2,491
2014* 2013 2012
EBITDA 47,207 48,427 52,388
EBIT 27,909 32,328 38,870
18,215 21,768 26,260
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
20% 30% 28% 27% 31% 20.21 24.31 31.07 34.26 23.53
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.17 2.12 1.57 1.40 2.05 0.97 1.64 1.28 1.08 1.64
Cash & Cash Equivalents Cash Flow from Ops
Royal Dutch Shell plc (the Company) is a diversified and integrated oil and gas company, based in The Hague, Netherlands. The
Company engages in the exploration and production of crude oil and natural gas, conversion of crude oil to a wide range of refined
products, as well as the production and sale of petrochemicals for industrial use.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Net Income Before Non-Recurring Items
0%
5%
10%
15%
20%
25%
30%
35%
2014* 2013 2012 2011 2010
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
2014* 2013 2012 2011 2010
0.0
0.4
0.8
1.2
1.6
2.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
193
SandRidge Energy, Inc.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
1,180 815 310 767 805 908
3,214 3,214 4,317 (262) (262) (237)
2,998 3,176 3,862 (1,406) (1,497) (2,146)
0 0 0 (901) (954) (1,475)
2014* 2013 2012
EBITDA 1,100 1,093 1,061
EBIT 512 463 432
58 (215) 164
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
52% 50% 53% 53% 65% 1.93 1.61 1.36 1.64 0.22
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
4.19 3.99 4.75 5.26 7.11 2.92 2.94 4.07 3.68 7.83
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
SandRidge Energy Inc. (SandRidge) focuses on drilling conventional oil wells in shallow carbonate reservoirs. Based in
Oklahoma City, SandRidge is a developer of the Mississippian Oil Play, with assets in the Permian Basin and the Gulf of
Mexico.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0%
10%
20%
30%
40%
50%
60%
70%
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
194
ShaMaran Petroleum Corp.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
122 143 41 (3) (1) (29)
148 148 1 0 0 0
327 329 331 (51) (40) (9)
0 0 0 (54) (41) (38)
2014* 2013 2012
EBITDA (2) (2) (3)
EBIT (3) (2) (3)
(6) (4) 119
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2013 2012 2011 2010 2009
31% 31% 0% 1% 0% -0.39 -1.09 -4.22 N/A N/A
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2013 2012 2011 2010 2009 2013 2012 2011 2010 2009
-57.17 -59.53 -0.02 -0.20 0.00 -59.14 -61.70 -0.22 -0.69 0.00
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
ShaMaran Petroleum Corp. (the Company) engages in the acquisition, exploration, and development of oil and gas properties in
the Kurdistan region of Iraq. The Company is based in Vancouver, Canada.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0%
5%
10%
15%
20%
25%
30%
35%
2014* 2013 2012 2011 2010
(5.0)
(4.0)
(3.0)
(2.0)
(1.0)
0.0
2013 2012 2011 2010 2009
(70.0)
(60.0)
(50.0)
(40.0)
(30.0)
(20.0)
(10.0)
0.0
2013 2012 2011 2010 2009
(70.0)
(60.0)
(50.0)
(40.0)
(30.0)
(20.0)
(10.0)
0.0
2013 2012 2011 2010 2009
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
195
Sinopec Corp.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
3,054 2,486 1,678 23,605 26,733 25,839
67,911 64,511 59,893 (4,040) (4,603) (4,040)
102,866 102,693 87,960 (21,137) (23,581) (23,088)
0 0 0 (1,572) (1,450) (1,288)
2014* 2013 2012
EBITDA 26,757 29,266 26,610
EBIT 15,088 16,048 15,443
9,971 11,034 10,249
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
40% 39% 41% 37% 38% 8.06 8.63 8.07 11.34 13.69
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
2.799115 2.475417 2.43219 2.05544 1.6882 2.5380295 2.2043 2.250723 1.79233 1.57765

Cash & Cash Equivalents Cash Flow from Ops
Sinopec Corp. is an integrated energy and chemical company with upstream, midstream and downstream operations. Its principal
business includes: exploring, developing, producing and trading of crude oil and natural gas; producing, storing, transporting and
distributing and marketing of petroleum products, petrochemical products, synthetic fiber, fertilizer and other chemical products.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Net Income Before Non-Recurring Items
0%
10%
20%
30%
40%
50%
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
196
SM Energy Company
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
236 282 6 1,367 1,314 911
2,675 2,675 1,888 (7) (7) (7)
1,675 1,607 1,414 (1,524) (1,554) (1,508)
0 0 0 (164) (246) (603)
(USD, Millions) 2014* 2013 2012
EBITDA 1,544 1,437 929
EBIT 742 614 201
Net Income Before Non-Recurring Items 444 346 177
KEY RATIOS
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
61% 62% 57% 55% 44% 7.017807 6.099035 2.6475 7.2076 8.0055
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.956317 2.035708 2.0709 2.4461 2.1488 1.732478 1.861168 2.0327 1.9264 1.7085
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
SM Energy Company is an independent energy company engaged in the acquisition, exploration, development and production
of crude oil, natural gas and natural gas liquids in onshore North America.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0%
10%
20%
30%
40%
50%
60%
70%
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
197
Southern Pacific Resources Corp.
RATING: CCC
DESCRIPTION
OPERATING CASH FLOW
2014* 2013 2012 2014* 2013 2012
59 1 1 (13) 17 47
661 546 459 0 0 0
378 417 346 (40) (130) (331)
0 0 0 (54) (112) (284)
2014* 2013 2012
EBITDA 17 23 44
EBIT (13) 1 19
(39) (25) 3
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
64% 57% 57% 56% 1% -0.200501 0.0385 0.4737 0.8948 8.639916
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
-49.595454 31.273802 9.7823 8.0662 0.0717 39.903253 24.258 10.388 8.008 0.069701
Cash & Cash Equivalents Cash Flow from Ops
Southern Pacific Resource Corp. is a publicly traded oil and gas company engaged in the development, exploration and
production of in-situ oil sands and heavy oil assets in Western Canada.
KEY METRICS
BALANCE SHEET
(CAD, millions) (CAD, millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(CAD, millions)
Net Income Before Non-Recurring Items
0%
10%
20%
30%
40%
50%
60%
70%
2014* 2013 2012 2011 2010
(2.0)
0.0
2.0
4.0
6.0
8.0
10.0
2014* 2013 2012 2011 2010
(60.0)
(50.0)
(40.0)
(30.0)
(20.0)
(10.0)
0.0
10.0
20.0
30.0
40.0
2014* 2013 2012 2011 2010
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
198
Southwestern Energy Company
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
19 23 54 2,174 1,984 1,599
1,827 2,341 2,121 0 0 0
3,800 3,622 3,036 (2,303) (2,253) (2,108)
0 0 0 (129) (269) (509)
2014* 2013 2012
EBITDA 2,303 2,070 1,718
EBIT 1,470 1,283 907
770 704 (707)
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
32% 39% 41% 31% 33% 13.938269 12.289466 9.2756 16.331 18.1
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0.840493 1.180234 1.3267 0.9969 0.9367 0.793646 1.131247 1.235 0.9551 0.891
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Southwestern Energy Company is an independent energy company primarily engaged in natural gas and crude oil exploration,
development and production within North America. Currently, its operations are principally focused on the development of
unconventional oil and natural gas.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0%
10%
20%
30%
40%
50%
2014* 2013 2012 2011 2010
0.0
5.0
10.0
15.0
20.0
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
199
Statoil ASA
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
21,978 14,057 11,303 22,200 15,911 21,389
52,934 49,720 42,158 (3,556) (3,663) (3,556)
62,663 58,652 57,487 (16,340) (19,302) (16,493)
0 0 0 2,304 (7,053) 1,340
(USD, Millions) 2014* 2013 2012
EBITDA 43,486 35,997 42,160
EBIT 33,326 24,855 31,989
Net Income Before Non-Recurring Items 11,985 6,908 10,911
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
46% 47% 42% 46% 47% 43.246783 59.64 50.32432 40.4622 50.228571
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
2 2.9739579 1.9886 1.9408 2.2001 1.2172673 1.4378 0.999971 0.96506 1.1283409
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Statoil ASA (the Company) engages in the exploration and production of crude oil and natural gas, as well as transportation, refining,
and marketing of petroleum and petroleum-derived products in Norway and internationally. The Company is also involved in the retail
sale of stationary energy, and building and operating offshore wind farms in the U.K.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0%
10%
20%
30%
40%
50%
2014* 2013 2012 2011 2010
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
200
Stone Energy Corporation
RATING: NR
DESCRIPTION
OPERATING CASH FLOW
2014* 2013 2012 2014* 2013 2012
203 331 280 522 537 563
1,035 1,032 918 0 0 0
986 970 872 (797) (670) (569)
0 0 0 (276) (133) (6)
2014* 2013 2012
EBITDA 632 648 643
EBIT 274 298 299
78 94 150
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
51% 52% 51% 48% 57% 3.373176 3.73815 4.3911 6.82714 4.69643
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.983247 1.920932 1.631 1.0901 1.4354 1.638116 1.59061 1.4272 0.99073 1.28422
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Net Income Before Non-Recurring Items
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Stone Energy Corporation is an independent oil and natural gas exploration and production company headquartered in
Lafayette, Louisiana, with additional offices in New Orleans, Louisiana, Houston, Texas and Morgantown, West Virginia.
KEY METRICS
BALANCE SHEET
(USD, Millions) (USD, Millions)
42%
44%
46%
48%
50%
52%
54%
56%
58%
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
201
Strategic Oil & Gas Ltd.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
38 0 3 16 16 20
75 66 38 0 0 0
176 136 82 (51) (119) (63)
0 0 0 (35) (103) (43)
2014* 2013 2012
EBITDA 20 21 20
EBIT (4) (7) (1)
(5) (13) (1)
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
30% 33% 32% 2% 7% -7.126923 -2.540655 -11.15 -42.471 -48.7
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
4.64743044 4.016112 1.9038 -1.129 -1.0953 3.803438 3.069169 1.9163 -2.4215 -1.841
Cash & Cash Equivalents Cash Flow from Ops
Strategic Oil & Gas Ltd. (the Company) engages in the exploration and development of petroleum and natural gas reserves in
Western Canada. The Company holds interests in various oil and natural gas properties located in Amber, Conrad, Steen River,
Larne, and Taber areas of Alberta, Canada, and in Northeast British Columbia. It also has properties located in Wyoming, United
States. Strategic Oil & Gas Ltd. was incorporated in 1987 and is headquartered in Calgary, Canada.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(CAD, Millions)
0%
5%
10%
15%
20%
25%
30%
35%
2014* 2013 2012 2011 2010
(60.0)
(50.0)
(40.0)
(30.0)
(20.0)
(10.0)
0.0
2014* 2013 2012 2011 2010
(2.0)
(1.0)
0.0
1.0
2.0
3.0
4.0
5.0
2014* 2013 2012 2011 2010
(3.0)
(2.0)
(1.0)
0.0
1.0
2.0
3.0
4.0
5.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
202
Suncor Energy Inc.
RATING: A (low); Stable
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
4,846 5,202 4,385 10,006 9,412 9,733
13,074 12,724 13,328 (1,236) (1,095) (756)
42,258 41,180 39,215 (6,782) (6,777) (6,957)
0 0 0 1,988 1,540 2,020
2014* 2013 2012
EBITDA 12,327 11,781 11,179
EBIT 7,915 7,510 6,857
5,372 4,971 4,553
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
24% 24% 25% 25% 29% 11.163611 10.682788 10.726562 12.091 6.7865
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.3065679 1.351891 1.3694 1.3424 2.1502 1.0605987 1.0800441 1.19223544 1.1536 1.7603
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(CAD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Suncor Energy Inc. is an integrated oil and gas company. Its upstream operations are mainly oil sands based in North America, with the
balance in the North Sea and North Africa. Its downstream operations include refineries, a lubricants plant and a national network of retail
stations.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
0%
5%
10%
15%
20%
25%
30%
35%
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
203
Sunshine Oilsands Ltd.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
13 16 282 (20) (20) (17)
17 17 24 0 0 0
915 881 871 (230) (283) (230)
0 0 0 (249) (303) (247)
2014* 2013 2012
EBITDA (12) (13) (19)
EBIT (13) (14) (19)
(33) (33) (31)
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
2% 2% 3% 12% 0% -8.42891 -8.102941 N/A N/A N/A
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
-0.87368 -0.965937 -1.403 -1.74 -0.0049 -1.389844 -1.301384 -1.26 -2.1167 -0.007
Cash & Cash Equivalents Cash Flow from Ops
Sunshine Oilsands Ltd. (the Company) is a Canada-based oil sand accumulations exploration and development company. Its
business area focuses on the oil sands leases in the Athabasca oil sands area of Alberta. The Company is engaged in the
exploration, development and production of oil sands leases. Its principal operating regions in the Athabasca area are at West
Ells, Thickwood, Legend Lake, Harper, Muskwa, Goffer and Portage.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(CAD, Millions)
Net Income Before Non-Recurring Items
0%
2%
4%
6%
8%
10%
12%
14%
2014* 2013 2012 2011 2010
(10.0)
(8.0)
(6.0)
(4.0)
(2.0)
0.0
2014* 2013 2012 2011 2010
(2.0)
(1.5)
(1.0)
(0.5)
0.0
2014* 2013 2012 2011 2010
(2.5)
(2.0)
(1.5)
(1.0)
(0.5)
0.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
204
Surge Energy Inc.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
0 0 0 142 116 92
373 294 210 (42) (19) 0
922 854 351 (144) (126) (181)
0 0 0 (44) (29) (89)
2014* 2013 2012
EBITDA 170 144 102
EBIT 69 61 33
52 46 40
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
29% 26% 37% 21% 13% 6.238216 5.439262 4.7061 4.2314 6.6533
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
2.634816 2.580841 2.2807 1.4886 2.1101 2.200407 2.18244 2.069 1.3844 1.5447
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(CAD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Surge Energy Inc. is an oil-focused oil and gas company with operations in Alberta, Manitoba and North Dakota.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
0%
5%
10%
15%
20%
25%
30%
35%
40%
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
205
Talisman Energy Inc.
RATING: BBB (high); UR-Neg.
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
532 364 553 1,544 1,468 2,366
5,228 6,098 5,486 (285) (285) (286)
8,989 8,555 9,910 (2,341) (2,363) (3,509)
191 191 191 (1,082) (1,180) 286
2014* 2013 2012
EBITDA 2,408 2,241 3,091
EBIT 438 319 720
(218) (584) 100
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
37% 42% 36% 40% 39% 1.440789 1.049342 3.0897 9.547 7.6187
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
3.386628 4.15361 2.0694 2.2876 2.4412 2.171096 2.720883 1.599 1.4342 1.5284
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Talisman Energy Inc. is an internationally diversified oil and gas exploration and production company, with production located
in North America, the North Sea, Southeast Asia and other international areas.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
32%
34%
36%
38%
40%
42%
44%
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
206
The Delek Group Ltd.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
1,610 1,431 2,119 1,751 2,828 1,191
6,717 7,399 8,420 (167) (147) (69)
3,091 3,147 3,382 330 327 333
0 0 0 1,254 2,354 789
2014* 2013 2012
EBITDA 960 944 1,025
EBIT 553 540 304
(100) (55) (128)
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
68% 70% 71% 72% 83% 1.32 1.305835 0.783 0.8455 1.0147
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
3.834888852 2.6163796 7.071 3.336 11.279 11.303629 7.8418303 14.562 12.655 11.332
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
The Delek Group Ltd., an integrated energy company in Israel, is engaged in natural gas exploration and production activities.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0%
20%
40%
60%
80%
100%
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
207
TORC Oil & Gas Ltd.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
0 14 80 120 88 13
101 93 6 (17) (8) 0
927 921 541 (151) (163) (135)
0 0 0 (48) (83) (121)
2014* 2013 2012
EBITDA 94 60 3
EBIT 18 (0) (15)
(2) (14) (18)
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
10% 9% 1% 2% 0% 5.848271 -0.13987 27.985 N/A N/A
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0.841138 1.051506 0.49 14.476 0 1.071911 1.549935 1.9871 -26.188 0
Cash & Cash Equivalents Cash Flow from Ops
TORC Oil and Gas Ltd. (the Company) is a Canada-based company engaged in the acquisition, exploration, development and
production of crude oil and natural gas assets. The Company produces crude oil, natural gas liquids and natural gas within
Canada and the United States.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(CAD, Millions)
Net Income Before Non-Recurring Items
0%
2%
4%
6%
8%
10%
12%
2014* 2013 2012 2011 2010
(5.0)
0.0
5.0
10.0
15.0
20.0
25.0
30.0
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
2014* 2013 2012 2011 2010
(30.0)
(25.0)
(20.0)
(15.0)
(10.0)
(5.0)
0.0
5.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
208
Total S.A. and Subsidiaries
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
23,659 20,921 22,481 25,372 25,957 27,466
55,864 52,397 50,128 (7,203) (7,128) (6,660)
106,384 103,218 95,654 (28,707) (29,752) (25,574)
0 0 0 (10,538) (10,923) (4,768)
(USD, Millions) 2014* 2013 2012
EBITDA 36,175 37,887 41,753
EBIT 25,332 26,944 31,410
Net Income Before Non-Recurring Items 14,334 14,201 15,881
KEY RATIOS
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
34% 34% 34% 35% 36% 24.9004323 23.7121 28.85978 29.2206 36
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
2.20 2.0182059 1.8245292 1.73 1.79 1.54427353 1.39715 1.346517 1.20454 1
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Total S.A. and Subsidiaries is an integrated non-government-owned petroleum company. It has global upstream activities, downstream
operations and a chemicals business.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0%
5%
10%
15%
20%
25%
30%
35%
40%
2014* 2013 2012 2011 2010
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
209
Tourmaline Oil Corp.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
0 0 0 656 507 278
595 615 383 0 0 0
3,703 3,368 2,735 (1,366) (1,167) (666)
0 0 0 (710) (659) (387)
2014* 2013 2012
EBITDA 670 506 280
EBIT 279 150 37
195 101 7
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
14% 15% 12% 5% 2% 21.1725 12.263747 3.5691 16.286 19.85
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0.90663 1.212597 1.3758 0.448 0.2162 0.888543 1.215721 1.3681 0.4887 0.2426
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Tourmaline Oil Corporation (the Company) is engaged in the acquisition, exploration, development, and production of crude oil
and natural gas properties in the Western Canadian Sedimentary Basin. The Company is based in Calgary, Canada.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0%
5%
10%
15%
20%
2014* 2013 2012 2011 2010
0.0
5.0
10.0
15.0
20.0
25.0
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
210
TransGlobe Energy Corporation
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
108 122 83 128 139 153
142 141 204 0 0 0
518 500 436 (66) (129) (52)
0 0 0 62 10 102
2014* 2013 2012
EBITDA 216 222 237
EBIT 164 172 190
82 78 88
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
21% 22% 32% 24% 34% 21.324671 21.494327 23.705 41.001 34.841
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.10819 1.072921 1.39 0.9547 1.3054 0.657345 0.637701 0.8617 0.5656 0.8314
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
TransGlobe Energy Corporation is an international exploration and production company based in Calgary, with oil interests in Egypt
and Yemen.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0%
5%
10%
15%
20%
25%
30%
35%
40%
2014* 2013 2012 2011 2010
0.0
10.0
20.0
30.0
40.0
50.0
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
211
Trilogy Energy Corp.
RATING: B; Stable
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
0 0 0 281 280 242
598 567 608 (51) (50) (49)
670 666 486 (400) (400) (353)
0 0 0 (170) (170) (160)
2014* 2013 2012
EBITDA 327 323 263
EBIT 115 107 39
36 32 (7)
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
47% 46% 56% 45% 35% 2.9315497 2.681303 1.645 4.3258 1.7933
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
2.130679962 2.026043 2.5167 1.9702 1.9188 1.8318634 1.756667 2.3148 1.8916 2.0941
Cash & Cash Equivalents Cash Flow from Ops
Trilogy Energy Corporation is a Canadian energy company, engaged in the development, production and sale of natural gas,
crude oil and and natural gas liquids. Its operations are based in Alberta.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(CAD, Millions)
Net Income Before Non-Recurring Items
0%
10%
20%
30%
40%
50%
60%
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
212
Twin Butte Energy Ltd.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
0 0 0 152 133 135
349 342 191 (49) (45) (32)
473 502 472 121 (107) (148)
0 0 0 (18) (18) (46)
2014* 2013 2012
EBITDA 232 171 141
EBIT 82 36 41
29 4 16
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
42% 41% 29% 32% 36% 9.895951 4.384169 7.2976 7.3549 1.9008
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
2.291137 2.56623 1.4137 1.4328 2.6187 1.503622 1.999935 1.353 1.3987 2.7631
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(CAD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Twin Butte Energy Limited (the Company) is an oil and gas company based in Calgary. The Company focuses on heavy oil in the
greater Lloydminster area along the Alberta and Saskatchewan border.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
0%
10%
20%
30%
40%
50%
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
213
Ultra Petroleum Corp.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
8 11 13 587 509 721
2,552 2,597 1,962 0 0 0
(228) (331) (578) (395) (377) (839)
0 0 0 192 132 (118)
2014* 2013 2012
EBITDA 703 616 516
EBIT 458 372 127
350 264 (4)
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
110% 115% 142% 54% 58% 4.1574 3.597259 1.2327 4.8986 6.497
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
4.345639 5.105772 2.7208 1.9892 2.0925 3.628536 4.217634 3.8016 2.3678 2.2413
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Ultra Petroleum Corporation is an independent energy company engaged in the exploration and production of oil and natural
gas. Its primary asset is the sand river play in the Green River basin of Wyoming.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0%
20%
40%
60%
80%
100%
120%
140%
160%
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
214
Unit Corporation
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
1 19 1 654 632 665
690 697 792 0 0 0
2,235 2,173 1,974 (708) (704) (762)
0 0 0 (55) (72) (98)
2014* 2013 2012
EBITDA 681 645 656
EBIT 338 315 339
202 180 308
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0.235913 0.24755 0.2863 0.1477 0.0919 22.202374 20.509956 23.91 77.489 N/A
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.055728 1.103099 1.1916 0.5452 0.3838 1.013796 1.090376 1.2097 0.5603 0.4117
Cash & Cash Equivalents Cash Flow from Ops
Unit Corporation is a diversified energy company engaged through its subsidiaries in the exploration for and production of oil
and natural gas, the acquisition of producing oil and natural gas properties, the contract drilling of onshore oil and natural gas
wells, and the gathering and processing of natural gas.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
0%
5%
10%
15%
20%
25%
30%
35%
2014* 2013 2012 2011 2010
0.0
20.0
40.0
60.0
80.0
100.0
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
215
Vaalco Energy, Inc.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
81 131 131 78 87 74
0 60 57 0 0 0
245 251 213 (73) (67) (72)
0 0 0 5 20 2
2014* 2013 2012
EBITDA 73 94 151
EBIT 55 77 132
23 43 45
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0% 19% 21% 17% 21% N/A N/A N/A N/A N/A
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0 0.685715 0.7765 0.6246 0.767 0 0.634195 0.3792 0.2982 0.5183
Cash & Cash Equivalents Cash Flow from Ops
Vaalco Energy, Inc. (the Company) is a Houston, Texas based independent energy company engaged in the acquisition,
exploration, development and production of crude oil and natural gas. The Companys properties and exploration activities are
located in Gabon and Angola.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Net Income Before Non-Recurring Items
0%
5%
10%
15%
20%
25%
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
2014* 2013 2012 2011 2010
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
2014* 2013 2012 2011 2010
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
216
Vermilion Energy Inc.
RATING: BB (low); Positive
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
151 390 102 696 656 544
1,058 1,104 735 (247) (169) (187)
1,832 1,716 1,419 (559) (551) (453)
0 0 0 (109) (64) (96)
2014* 2013 2012
EBITDA 960 907 762
EBIT 620 585 466
245 225 256
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
37% 39% 34% 24% 24% 15.140499 15.322813 16.882 19.475 20.058
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.520435298 1.6843277 1.3803 0.9415 0.9631 1.101913 1.216864 0.9654 0.5877 0.7476
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(CAD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Vermilion Energy Inc. is engaged in oil and gas exploration and production. Its operations are internationally diversified, with
production located in Canada, France, Australia and the Netherlands.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
0%
10%
20%
30%
40%
50%
2014* 2013 2012 2011 2010
0.0
5.0
10.0
15.0
20.0
25.0
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
217
W&T Offshore, Inc.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
20 16 12 545 547 538
1,202 1,213 1,095 (60) (59) (83)
547 541 541 (511) (552) (479)
0 0 0 (26) (64) (25)
2014* 2013 2012
EBITDA 581 586 519
EBIT 136 155 183
40 51 78
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
69% 69% 67% 57% 52% 1.586548 1.81227 2.8966 6.2521 3.9685
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
2.20461 2.218157 2.0365 1.2264 1.1099 2.067264 2.071007 2.1077 1.1472 1.0499
Cash & Cash Equivalents Cash Flow from Ops
W&T Offshore, Inc. is an independent oil and natural gas acquisition, exploitation and exploration company, with a focus
primarily in the Gulf of Mexico.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Net Income Before Non-Recurring Items
0%
10%
20%
30%
40%
50%
60%
70%
80%
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
218
Warren Resources, Inc.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
2 12 8 82 80 66
117 131 134 0 0 0
235 226 193 (79) (72) (64)
0 0 0 3 8 2
2014* 2013 2012
EBITDA 73 70 66
EBIT 30 25 19
33 28 16
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
33% 37% 41% 40% 38% 9.907969 8.36828 5.717 4.7622 7.0926
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
0.356697 1.6331487 2.0461 2.5382 2.0541 1.5978801 1.8698851 2.0338 2.4929 1.9473
Cash & Cash Equivalents Cash Flow from Ops
Warren Resources, Inc. (the Company) is an independent energy company engaged in the acquisition, exploration, development
and production of domestic onshore crude oil and gas reserves. The Company focuses primarily on the exploration and
development of waterflood oil recovery properties in the Wilmington Field within the Los Angeles Basin of California.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Net Income Before Non-Recurring Items
0%
10%
20%
30%
40%
50%
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
219
Whitecap Resources Inc.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
0 0 0 315 279 188
457 397 317 (107) (93) 0
1,601 1,282 910 (246) (190) (246)
0 0 0 (39) (4) (58)
2014* 2013 2012
EBITDA 359 304 185
EBIT 186 152 69
99 90 42
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
22% 24% 26% 26% 14% 11.065538 9.76286 5.807 8.332 0.4516
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.449628 1.424587 1.6841 1.5955 2.4095 1.272105 1.307808 1.7138 1.5806 2.1993
Cash & Cash Equivalents Cash Flow from Ops
Whitecap Resources Inc. (the Company) is engaged in the acquisition, development, and production of crude oil and natural gas in
western Canada. The Company is based in Calgary, Canada.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(CAD, Millions)
Net Income Before Non-Recurring Items
0%
5%
10%
15%
20%
25%
30%
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
220
Whiting Petroleum Corporation
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
406 699 45 1,724 1,649 1,347
2,691 2,691 1,832 (0) (1) (1)
3,941 3,837 3,453 (2,891) (2,818) (2,171)
0 0 0 (1,168) (1,170) (826)
2014* 2013 2012
EBITDA 1,862 1,778 1,422
EBIT 936 887 737
600 593 375
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
41% 41% 35% 32% 25% 6.909636 7.74707 9.4569 12.353 9.8652
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.561132 1.632459 1.3607 1.1701 0.8771 1.445356 1.513532 1.2886 1.0927 0.8171
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Whiting Petroleum Corporation (the Company) is an independent exploration and production company that acquires, explores,
develops, and produces crude oil, natural gas liquids, and natural gas in the United States. The Company is headquartered in
Denver, Colorado.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0%
10%
20%
30%
40%
50%
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
221
WPX Energy, Inc.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
58 99 153 758 578 839
2,387 2,264 1,886 0 0 0
4,233 4,210 5,371 (1,235) (1,154) (1,521)
0 0 0 (477) (576) (682)
2014* 2013 2012
EBITDA 773 664 1,058
EBIT (143) (276) 92
198 43 (15)
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
36% 35% 26% 25% 34% -1.288288 -2.555555 0.902 3.3333 3.3065
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
3.147415 4.0042448 2.2471 1.5866 1.9742 3.087968 3.409638 1.7826 1.4227 1.7595
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
WPX Energy, Inc. is an independent natural gas and oil exploration and production company engaged in the development of
unconventional properties. It is based in Tulsa, Oklahoma, with operations and interests in Colorado, New Mexico, North Dakota,
Pennsylvania, Wyoming, Argentina and Colombia.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0%
5%
10%
15%
20%
25%
30%
35%
40%
2014* 2013 2012 2011 2010
(3.0)
(2.0)
(1.0)
0.0
1.0
2.0
3.0
4.0
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
222
YPF S.A.
RATING: NR
DESCRIPTION
2014* 2013 2012 2014* 2013 2012
388 1,643 966 6,080 4,894 3,821
5,015 5,122 5,046 (60) (60) (67)
7,775 7,400 6,358 (6,203) (5,077) (3,613)
0 0 0 (183) (243) 141
2014* 2013 2012
EBITDA 4,056 4,150 3,565
EBIT 1,988 2,050 1,741
1,112 941 860
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
39% 41% 44% 45% 41% 3.394469 2.911557 5.0758 6.8785 10.18
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
1.174939 1.253378 1.3205 1.174 0.836 1.2362468 1.2340969 1.4153 1.3371 0.9
Net Income Before Non-Recurring Items
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(USD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
YPF S.A. (the Company) is a vertically integrated Argentine energy company. The Company engages in the exploration and
production of oil and gas, as well as in transportation, refining, and marketing of gas and petroleum products.
KEY METRICS
BALANCE SHEET OPERATING CASH FLOW
(USD, Millions) (USD, Millions)
0%
10%
20%
30%
40%
50%
2014* 2013 2012 2011 2010
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
2014* 2013 2012 2011 2010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
223
Zargon Oil & Gas Ltd.
RATING: NR
DESCRIPTION
BALANCE SHEET
2014* 2013 2012 2014* 2013 2012
0 0 0 132 58 51
123 112 98 (21) (20) (27)
170 174 197 (74) (77) (67)
0 0 0 (35) (39) (43)
2014* 2013 2012
EBITDA 69 64 57
EBIT 24 18 9
Net Income Before Non-Recurring Items (61) 9 7
EBIT Gross Interest Coverage (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
42% 39% 33% 32% 38% 4.032882 3.152091 1.5841 5.295 6.0544
Adjusted Debt-to-Cash Flow (Times) Adjusted Debt-to-EBITDA (Times)
2014* 2013 2012 2011 2010 2014* 2013 2012 2011 2010
2.023762 1.91084 1.911 1.8654 1.74381 1.779707 1.757182 1.7312 1.3166 1.593
KEY RATIOS
Adjusted Debt in Capital Structure
DBRS Adjusted Total Debt
Preferred Shares
(CAD, Millions)
Total Dividends Paid
DBRS Adjusted Total Equity Capital Expenditure
Gross Free Cash Flow
INCOME STATEMENT
Cash & Cash Equivalents Cash Flow from Ops
Zargon Oil & Gas Ltd. (the Company) is engaged in exploring, developing, and producing oil and natural gas in Canada and
the United States. The Company is based in Calgary, Canada.
KEY METRICS
OPERATING CASH FLOW
(CAD, Millions) (CAD, Millions)
0%
10%
20%
30%
40%
50%
2014* 2013 2012 2011 2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
2014* 2013 2012 2011 2010
1.6
1.7
1.8
1.9
2.0
2.1
2014* 2013 2012 2011 2010
0.0
0.5
1.0
1.5
2.0
2014* 2013 2012 2011 2010
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
224
DBRS Rating Defnitions
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
225
RATING SCALES
Easily recognizable and widely accepted, the DBRS rating scales provide an accurate, impartial refer-
ence and representation of an issuers credit standing. With the current trend toward globalization, it is
becoming increasingly necessary to maintain consistency and impartiality when evaluating creditworthi-
ness. The familiar letter-grade symbols DBRS utilizes allow borrowers and investors to communicate in a
common language, using a common set of principles.
The DBRS rating symbols assist in the task of analyzing, evaluating and tracking large numbers of bor-
rowers for individual and institutional investors alike. Because of its impartiality, DBRS has earned the
confdence of many leading institutions that regularly use our research and analysis in their daily opera-
tions. DBRS rating symbols are frequently used under fduciary guidelines, and some institutions have
incorporated these symbols into their own analysis and decision-making processes. DBRS credit ratings
are not recommendations to buy, sell or hold a particular security, but are forward-looking measures that
assess an entitys ability to make timely payments of interest and principal. DBRS ratings do not take
factors such as pricing and market risk of securities into consideration, as investors are expected to use
the ratings as one part of their investment process. The following is a snapshot of DBRS policies related
to ratings, rating appendages and rating actions. For more details, please refer to our website or contact
DBRS directly.
DBRS Long-Term Debt Rating Scale
Symbol Credit Quality
AAA Highest
AA Superior
A Satisfactory
BBB Adequate
BB Speculative
B Highly Speculative
CCC Very Highly Speculative
CC Very Highly Speculative
C Very Highly Speculative
D Default
LONG-TERM DEBT RATING SCALE
The DBRS long-term rating scale provides an opinion on the risk of default. That is, the risk that an issuer
will fail to satisfy its fnancial obligations in accordance with the terms under which an obligations has
been issued. Ratings are based on quantitative and qualitative considerations relevant to the issuer, and
the relative ranking of claims. All rating categories other than AAA and D also contain subcategories
(high) and (low). The absence of either a (high) or (low) designation indicates the rating is in
the middle of the category.
AAA
Highest credit quality. The capacity for the payment of fnancial obligations is exceptionally high and
unlikely to be adversely affected by future events.
AA
Superior credit quality. The capacity for the payment of fnancial obligations is considered high. Credit
quality differs from AAA only to a small degree. Unlikely to be signifcantly vulnerable to future events.
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
226
A
Good credit quality. The capacity for the payment of fnancial obligations is substantial, but of lesser
credit quality than AA. May be vulnerable to future events, but qualifying negative factors are considered
manageable.
BBB
Adequate credit quality. The capacity for the payment of fnancial obligations is considered acceptable.
May be vulnerable to future events.
BB
Speculative, non-investment-grade credit quality. The capacity for the payment of fnancial obligations is
uncertain. Vulnerable to future events.
B
Highly speculative credit quality. There is a high level of uncertainty as to the capacity to meet fnancial
obligations.
CCC, CC and C
Very highly speculative credit quality. In danger of defaulting on fnancial obligations. There is little
difference between these three categories, although CC and C ratings are normally applied to obligations
that are seen as highly likely to default, or subordinated to obligations rated in the CCC to B range.
Obligations in respect of which default has not technically taken place but is considered inevitable may
be rated in the C category.
D
A fnancial obligation has not been met or it is clear that a fnancial obligation will not be met in the
near future or a debt instrument has been subject to a distressed exchange. A downgrade to D may not
immediately follow insolvency or restructuring fling as grace periods or extenuating circumstances may
exist.
DBRS Short-Term Debt Rating Scale
Symbol Credit Quality
R-1 (high) Highest
R-1 (middle) Superior
R-1 (low) Satisfactory
R-2 (high) Upper End of Adequate
R-2 (middle) Adequate
R-2 (low) Lower End of Adequate
R-3 Lowest End of Adequate
R-4 Speculative
R-5 Highly Speculative
D Default
Oil & Gas Study
Criteria For the Non-Investment Grade World
July 2014
227
COMMERCIAL PAPER AND SHORT-TERM DEBT RATING SCALE
The DBRS short-term debt rating scale provides an opinion on the risk that an issuer will not meet its
short-term fnancial obligations in a timely manner. Ratings are based on quantitative and qualitative
considerations relevant to the issuer and the relative ranking of claims. The R-1 and R-2 rating categories
are further denoted by the subcategories (high), (middle), and (low).
R-1 (high)
Highest credit quality. The capacity for the payment of short-term fnancial obligations as they fall due is
exceptionally high. Unlikely to be adversely affected by future events.
R-1 (middle)
Superior credit quality. The capacity for the payment of short-term fnancial obligations as they fall due
is very high. Differs from R-1 (high) by a relatively modest degree. Unlikely to be signifcantly vulnerable
to future events.
R-1 (low)
Good credit quality. The capacity for the payment of short-term fnancial obligations as they fall due is
substantial. Overall strength is not as favourable as higher rating categories. May be vulnerable to future
events, but qualifying negative factors are considered manageable.
R-2 (high)
Upper end of adequate credit quality. The capacity for the payment of short-term fnancial obligations as
they fall due is acceptable. May be vulnerable to future events.
R-2 (middle)
Adequate credit quality. The capacity for the payment of short-term fnancial obligations as they fall due
is acceptable. May be vulnerable to future events or may be exposed to other factors that could reduce
credit quality.
R-2 (low)
Lower end of adequate credit quality. The capacity for the payment of short-term fnancial obligations as
they fall due is acceptable. May be vulnerable to future events. A number of challenges are present that
could affect the issuers ability to meet such obligations.
R-3
Lowest end of adequate credit quality. There is a capacity for the payment of short-term fnancial obliga-
tions as they fall due. May be vulnerable to future events and the certainty of meeting such obligations
could be impacted by a variety of developments.
R-4
Speculative credit quality. The capacity for the payment of short-term fnancial obligations as they fall
due is uncertain.
R-5
Highly speculative credit quality. There is a high level of uncertainty as to the capacity to meet short-term
fnancial obligations as they fall due.
D
A fnancial obligation has not been met or it is clear that a fnancial obligation will not be met in the
near future, or a debt instrument has been subject to a distressed exchange. A downgrade to D may not
immediately follow insolvency or restructuring fling as grace periods, other procedural considerations,
or extenuating circumstance may exist.
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Glossary of Terms
Cash Flow from Operations (CFO): Cash fow before change in non-cash working capital. Similar to
net income before non-recurring items, CFO excludes all non-recurring cash fow, including cash from
discontinued operations. Under International Financial Reporting Standards (IFRS), fnance expenses
may be excluded from CFO; however, DBRS believes that from a credit perspective, CFO should be net of
fnance expenses as it was calculated under Canadian Generally Accepted Accounting Principles (GAAP)
and U.S. GAAP. DBRS also looks at the stability of CFO throughout a business cycle to assess its quality.
Cash Flow-to-Dividends and Capital Expenditures: Cash fow from operations divided by the sum of
capital expenditures and dividends paid. DBRS uses this ratio to analyze a companys ability to use inter-
nally generated cash fow to fnance its growth after paying dividends. A ratio greater than 1.0x indicates
that the company generates free cash fow.
Cash Flow-to-Dividends and Capital Expenditures = Cash Flow from Operations (Dividends +
Capital Expenditures)
Cash Flow-to-Total Debt: Cash fow from operations divided by gross debt, as defned. DBRS uses this
ratio to measure a companys ability to meet debt levels using cash generated through its core operations.
The higher the ratio, the less time it takes the company to pay off its debt.
Cash Flow-to-Total Debt = Cash Flow from Operations Gross Debt
Debt-to-EBITDA: Gross debt, as defned, divided by EBITDA. DBRS uses this ratio to measure a com-
panys ability to repay borrowings with its income before depreciation, interest and tax. Lower ratios
indicate a higher capacity to repay or lower earnings-to-debt leverage. DBRS looks at the maximum of
this ratio in the covenants to assess the ability of the company to borrow additional debt given the current
level of EBITDA.
Debt-to-EBITDA = Gross Debt EBITDA
EBIT Interest Coverage: EBIT divided by gross interest expense; this ratio is similar to EBITDA interest
coverage, but after depreciation and amortization. If a company has high EBITDA but low EBIT, indi-
cating high fxed costs and risk, it may require more capital spending to sustain the current level of
operations.
EBIT Interest Coverage = EBIT Gross Interest
EBIT Margin: This ratio is calculated by dividing EBIT by net sales. This ratio is similar to EBITDA
margin but is measured after depreciation and amortization.
EBIT Margin = EBIT Net Sales
EBIT: Earnings before interest and taxes. It is defned as EBITDA less depreciation and amortization. The
approach used by DBRS to assess EBIT is similar to that of EBITDA, which measures the quality, stability
and diversifcation of EBIT. Furthermore, in the oil and gas sector, EBIT is of particular importance in that
companies often have to spend suffcient amount of capital expenditures to replace depreciated assets to
sustain their operations.
EBIT = EBITDA Depreciation and Amortization
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EBITDA Interest Coverage: EBITDA divided by gross interest expense. DBRS uses this ratio to analyze
a companys ability to cover its interest payments with earnings before fnancing charges, depreciation
and amortization. This ratio ignores principal payments, assuming refnancing. DBRS looks for stability
in EBITDA interest coverage through business cycles to determine if a company will be able to meet
commitments in a downturn. DBRS also compares this ratio with the leverage ratio covenants in the
indenture or a credit agreement to determine how much room a particular company has.
EBITDA Interest Coverage = EBITDA Gross Interest
EBITDA Margin: This ratio is calculated by dividing EBITDA by net sales. It is used to measure a com-
panys operating effciency. DBRS looks at the margin consistency through the business cycle. Since the oil
and gas industry has high fxed costs and is capital intensive, critical mass is important as it reduces unit
costs. Companies with economies of scale tend to achieve a higher EBITDA margin.
EBITDA Margin = EBITDA Net Sales
EBITDA: Earnings before interest, taxes, depreciation and amortization. It is defned as revenue less
cost of goods sold and operating expenses. EBITDA measures core earnings to the exclusion of items
that are non-recurring and/or one-time in nature, including earnings from discontinued operations. This
number is indicative of a companys ability to generate income before fnance expenses, depreciation
and amortization charges and taxes. As such, it can often be used as a proxy for cash fow from core
operations before taxes and interest. Furthermore, to determine the quality of EBITDA, DBRS looks at
(1) the size of a companys EBITDA relative to its peers, (2) the stability of EBITDA throughout business
cycles and (3) the components of EBITDA to determine the degree of diversifcation in operations.
EBITDA = Revenue Cost of Goods Sold Operating Expenses (general administrative costs,
exploration expenses, research and development expenses and other operating expenses)
Gross Debt (or Adjusted Total Debt): The sum of short-term debt, long-term debt and capitalized operating
leases plus the debt portion of hybrid securities and preferred shares, where applicable at period end.
Net Debt: Gross debt, as defned, less cash and cash equivalents at the end of the period.
Net Debt = Gross Debt Cash and Cash Equivalents
Net Income before Non-Recurring Items: Earnings after income taxes, adjusted to exclude extraordinary
and non-recurring items (including equity earnings but net of minority interest). This number is used to
measure a companys proftability without being distorted by one-time items. As such, DBRS looks for
consistency through business cycles, as well as diversifcation through different operations and geographic
locations.
Net Income before Non-Recurring Items = EBIT Interest Income Taxes Extraordinary Items
Percent Debt in Capital Structure: Gross debt at the end of the period divided by total capital of the
period, as defned. This ratio indicates the debt-leverage level; the higher the ratio, the more the debt
leverage and the higher the fnancial risk. In an industry as volatile as oil and gas, low-leverage companies
can better withstand an economic downturn. DBRS looks at the debt covenants in a credit agreement or
an indenture to determine the level of fnancial fexibility.
Percent Debt in Capital Structure = Gross Debt Total Capital
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Percent Net Debt in Capital Structure: Net debt divided by total capital, as defned. This is similar to total
debt-to-total capital. However, this ratio takes a closer look at the percent debt in the capital structure to
see if there might be cash on hand that offsets debt levels. If the ratios are similar, the cash on hand adds
little comfort, but if they differ, the cash on hand provides some comfort that the debt burden could easily
be mitigated, but with the caveat that the excessive cash on the balance sheet may be used by the company
for other purposes such as capital expenditures, share buybacks or potential acquisitions.
Percent Net Debt in Capital Structure = Net Debt Total Capital
Return on Capital (ROC): This ratio is calculated by dividing net income after tax but before non-
recurring items by the average of the beginning and ending total capital (debt and equity). This ratio
measures proftability levels as percentage of total capital. This presents the returns of investments by
both shareholders and debt creditors. A low ROC but a signifcantly high ROE could mean that the
company is highly leveraged, imposing more risk to the debt holders in favour of the shareholders.
Return on Capital = Net Income before Non-Recurring Items / [(Year-end X Total Capital + Year-end
X-1 Total Capital) /2]
Return on Common Equity (ROE): This ratio is calculated by dividing net income after tax but before
non-recurring items by the average of the beginning of the year and ending of the years common equity.
This ratio measures a companys proftability level as a percentage of equity or shareholder investment.
DBRS looks for high ROE as well as year-over-year consistency in the ratio.
Return on Equity = Net Income before Non-Recurring Items [(Year-end X Common Equity +
Year-end x-1 Common Equity) /2]
Total Capital: Gross debt plus total equity, as defned.
Total Capital = Gross Debt + Total Equity
Total Equity or Adjusted Total Equity (for the purpose of calculating capital structure): The sum of
common equity and minority interest, plus the equity portion of hybrid securities and preferred shares,
where applicable.
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231
Company-Specifc Business Risk Factors
PRIMARY BRR FACTORS
The BRR (business risk ratings) grid below shows the primary factors used by DBRS in determining the
BRR. While these primary factors are shown in general order of importance, depending on a specifc
issuers business activities, this ranking can vary by issuer.
Company-Specifc Business Risks Primary BRR Factors
AA A BBB BB B
Size and
Business Mix
Exceptional size
(i.e., well in excess
of 1.5 million bar-
rels of oil equiva-
lent production per
day).
Fully integrated.
Well-balanced prod-
uct mix between
liquids and dry gas.
Signifcant presence
in many key global
basins.
Superior size.
Well integrated.
Balanced prod-
uct mix (liquids
vs. dry gas).
Strong geo-
graphical diver-
sifcation.
Adequate
size (i.e., in
the area of
100,000 barrels
of oil equivalent
production per
day).
Some integra-
tion.
Average prod-
uct mix (liquids
vs. dry gas).
Good geo-
graphical diver-
sifcation.
Small size.
Low integra-
tion.
Some product
diversifcation
(liquids vs. dry
gas).
Limited
geographical
diversifcation.
Very small
size (i.e., less
than 25,000
barrels of oil
equivalent
production per
day).
No integra-
tion.
Concentrated
product range
in either
liquids or dry
gas.
Very limited
geographical
diversifcation.
Reserves of
Core
Operations
Exceptional reserve
quality.
Industry-leading
reserve life (i.e.,
proven reserves
divided by recent
annual production
volume).
Exceptional ability
to grow reserves
and production.
Superior re-
serve quality.
Long reserve
life (generally
more than ten
years).
Superior abil-
ity to grow
reserves and
production.
Adequate re-
serve quality.
Average
reserve life
(about ten
years).
Adequate
ability to grow
reserves and
production.
Weak reserve
quality.
Below-average
reserve life.
Weak ability to
grow reserves
and produc-
tion.
Poor reserve
quality.
Short reserve
life (generally
less than fve
years).
Poor ability to
grow reserves
and produc-
tion.
Cost
Competitive-
ness
Very low cost base.
Industry-leading
operating effciency.
Exceptional infra-
structure.
Low cost base.
High operating
effciency.
Superior infra-
structure.
Average cost
base.
Average oper-
ating effciency.
Adequate infra-
structure.
High cost base.
Below-average
operating ef-
fciency.
Weak infra-
structure.
Very high cost
base.
Low operating
effciency.
Poor infra-
structure.
Sensitivity to
Price/Market
Volatility
Exceptional ability
to withstand mar-
ket volatility.
Superior ability
to withstand
market volatil-
ity.
Adequate abil-
ity to withstand
market volatil-
ity.
Weak ability to
withstand mar-
ket volatility.
Poor ability
to withstand
market volatil-
ity.
Capital Flex-
ibility
Exceptional capital
fexibility.
Superior capital
fexibility.
Adequate capi-
tal fexibility.
Weak capital
fexibility.
Poor capital
fexibility.
The following BRR risk factors are relevant to issuers in all industries (although the relevance of sovereign
risk can vary considerably):
Sovereign Risk
The issuer rating may, in some cases, be constrained by the credit risk of the sovereign; in other words,
the rating of the country in which the issuer operates generally sets a maximum rating for the issuer. If the
issuer operates in multiple countries and a material amount of its business is conducted in a lower-rated
country, DBRS may refect this risk by downwardly adjusting its issuer rating.
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232
Corporate Governance
Please refer to DBRS Criteria: Evaluating Corporate Governance for further information on how
DBRS evaluates corporate governance and management.
ADDITIONAL BRR FACTORS
The additional BRR factors discussed below may be very important for certain issuers, depending upon
their activities, but they do not necessarily apply to all issuers in the industry.
Political Risks
Companies in the oil and gas industry are often confronted with signifcant political risks, including
unilateral changes in royalties, production-sharing contracts and more local issues, particularly in
politically sensitive countries.
While international frms in any industry can be subject to political risks, oil and gas reserves located
in politically unstable countries are particularly vulnerable to risk. Diversifcation between countries
is important to ensure the security of reserves. DBRS reviews political risk indicators, such as the
percentage of production from Organisation for Economic Cooperation and Development (OECD)
countries, credit ratings of host countries and the concentration of production and reserves by country,
where appropriate.
Regulatory/Environmental Risks
All production activities are subject to regulatory oversight, particularly with respect to safety and
environmental issues. Certain activities, such as offshore drilling or tar sand production, for example,
are subject to additional regulations as well as public attention.
While environmental costs remain a relatively small portion of total operating costs, these are likely
to increase over time and could result in a lengthier permit process, which will likely have a negative
impact on proftability.
Exploration
Exploration, while essential to fnding new reserves, is an expensive and risky undertaking. To the
extent a frm is overweighted in exploration activities relative to its size or capital resources, DBRS may
view this as a negative factor on the rating.
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233
Company-Specifc Financial Risk Factors
PRIMARY FRR METRICS
The FRR grid below shows the primary FRR metrics used by DBRS to determine the FRR. While these
primary FRR metrics are shown in general order of importance, depending upon an issuers activities,
the ranking can vary by issuer.
DBRS ratings are based heavily on future performance expectations, so while past metrics are important,
any fnal rating will incorporate DBRSs opinion on future metrics, a subjective but critical consideration.
It is not unusual for a companys metrics to move in and out of the ranges noted in the grid below,
particularly for cyclical industries. In the application of this matrix, DBRS looks beyond the point-in-
time ratio.
Financial metrics depend on accounting data whose governing principles vary by jurisdiction and, in
some cases, industry. DBRS may adjust fnancial statements to permit comparisons with issuers using
different accounting principles.
Please refer to DBRS Criteria: Financial Ratios and Accounting Treatments Non Financial Companies
for defnitions of, and common adjustments to, these ratios in the FRR grid below.
Liquidity can be a material risk factor, especially for lower-rated non-investment grade issuers. DBRS
will consider available sources of liquidity including cash on hand, cash fow, access to bank lines, etc.,
as well as uses of liquidity such as operations, capital expenditures, share buybacks and dividends for
every issuer.
While market pricing information (such as market capitalization or credit spreads) may on occasion
be of interest to DBRS, particularly where it suggests that an issuer may have diffculty in raising
capital, this information does not usually play a material role in DBRSs more fundamental approach
to assessing credit risk.
Oil and Gas - Primary FRR Metrics
Key Ratio AA A BBB BB B
Debt-to-cash fow < 1.0x 1.0x to 1.5x 1.50x to 2.0x 2.0x to 3.0x > 3.0x
Debt-to-capital < 25% 25% to 35% 35% to 45% 45% to 55% > 55%
EBIT interest coverage > 20.0x 10x to 20x 5x to 10x 3.0x to 5.0x < 3.0x
ADDITIONAL FRR METRICS
While the primary FRR metrics above will be the most important metrics that DBRS will use in
determining the FRR of an issuer, other metrics may be used, depending upon an issuers activities,
capital structure, pension liabilities and off-balance sheet obligations.
Proftability, particularly in the medium term, can be an important differentiator of credit risk. DBRS
may assess proftability through a variety of metrics, including return on capital.
Operating metrics, such as netback analysis (a measure of operating proftability on a per barrel basis
or reserve recycle ratio (a measure of operating proftability per dollar invested in reserve development),
can be useful metrics for credit differentiation.
For issuers that have downstream operations, DBRS may evaluate these activities with operating
statistics, such as refned throughput or refned capacity utilization (an effciency measure that indicates
the percentage of a companys licensed capacity that is used).
Because of the high cyclicality of the industry, fnancial ratios vary widely through the cycle. As a result,
fnancial metrics (in comparison with BRR factors) will be of even lower relative importance than they
are for most industries, particularly for investment-grade credits.
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234
INDUSTRY BUSINESS RISK RATING DEFINITIONS
DBRS specifes the BRR for an industry in terms of our Long-Term Obligations rating scale. When
discussing industry BRRs for an industry, DBRS typically provides either one specifc rating or a limited
range (such as BBB (high)/BBB). Using a range recognizes the fact that, by their nature, industry BRRs are
less precise than a specifc corporate or security rating, as they represent an overall industry. In addition
to relating to the industry level, these defnitions also apply to the business risk of individual companies,
which will fall more often in the very high and low categories (AA/AAA and B) than would be the case
for an entire industry.
Industry BRRs
Rating Business Strength Comment
AA/AAA Exceptional An industry BRR of AA/AAA is considered unusually strong, with no meaningful
weakness in any individual area. It may include pure monopolies that are
deemed essential (the primary case being regulated utilities, where the risk of
deregulation is believed to be very low). Common attributes include product
differentiation, high barriers to entry and meaningful cost advantages over other
industries or entities. These and other strengths provide exceptional stability
and high proftability. It would be quite rare for an industry to have a BRR in this
category.
A Superior Industry BRRs at the A level are considered well above average in terms of
stability and proftability and typically have some barriers to entry related to
capital, technology or scale. Industries that have, by their nature, inherent
challenges in terms of cyclicality, a high degree of competition and technology
risks would be unlikely to attain this rating category.
BBB Adequate Industry BRRs at the BBB level include many cyclical industries where other
positive considerations are somewhat offset by challenges related to areas such
as commodity products, labour issues, low barriers to entry, high fxed costs and
exposure to energy costs. This rating category is considered average and many
industries fall within it, with key considerations such as overall proftability and
stability typically considered as neither above or below average.
BB Weak An industry at the BB level has some meaningful challenges. In addition to high
cyclicality, challenges could include the existence of high technology or other
risks. Long-standing industries that may have lost their key strengths through
factors such as new competition, obsolescence or the inability to meet changing
purchaser demands may ft here. The culmination of such factors results in an
industry that does not generally score well in terms of stability and proftability.
For an entire industry, this is typically the lowest BRR level.
B Poor While not common, there are cases where an industry can have a BRR of B. Such
industries would typically be characterized by below-average strength in all or
virtually all major areas.
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