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Moody’s Puts Chevron On Review; Lack of Investment To Hit Exxon Mobil

Discussion in 'Energy, Environment, and Policy' started by RobStark, Feb 27, 2016.

  1. RobStark

    RobStark Active Member

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    Moody’s put Chevron (CVX) on review for a downgrade on expected negative free cash flow and changed Exxon Mobil‘s (XOM) debt rating outlook to negative, as lower capital reinvestment will likely haunt the oil major for the rest of the decade.

    The ratings agency predicts negative free cash flow this year and next at Chevron, according to a note from Pete Speer, Moody’s senior vice president. He thinks negative free cash flow could even continue until 2018.


    Last month Chevron cut its capital spending for this year by 25% vs. 2015, but Moody’s sees negative free cash flow to exceeded $15 billion in 2016, despite the spending cut. Chevron had negative free cash flow of around $16 billion in 2015.


    Chevron shares closed down 1.1% in the stock market today as oil prices fell.


    Moody’s changed Exxon’s debt rating outlook to negative from stable on “negative free cash flow and weak cash flow based leverage metrics for ExxonMobil in 2016 and 2017.”

    http://www.investors.com/news/moodys-cuts-conocos-rating-lowers-exxons-outlook/
     

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