Moody’s Lifts Andarko Debt to Investment Grade (APC)

In its report Moody’s noted:

Anadarko’s Baa3 ratings are supported by its proved reserve and production scale that is among the largest of all independent exploration and production (E&P) companies and comparable to Baa1 and A3 rated peers. The company’s credit profile benefits from having 32% of its production from oil and 11% from natural gas liquids that support its cash flows in this weak natural gas price environment. The asset base also has good basin diversity in the US along with international diversification provided through working interests in numerous major offshore oil and gas developments.

Anadarko continues to be exposed to liabilities related to the Macondo well explosion in the Gulf of Mexico in April 2010. But Moody’s believes the risk is manageable given the company’s cash and revolving credit availability of about $4.8 billion.

Anadarko’s shares are up about 1.3% at $79.23 in a 52-week range of $57.11-$88.70.