I3 January 2015
HY Corporate Credit
Energy
Commodity MI< Semen
Despite bear oil markets, we still see oil mix driving higher per unit cash
margin for the oilier E&Ps, especially a credit like offshore E&P Tullow (TLW)
with significant assets in the development stage. We concede, in this analysis,
E&Ps with long-dated and core natural gas reserves screen poorly here despite
clear long term viability. For example, RRC, AR, and WPX are screened in the
bottom quartile here despite roughly BB ratings.
Deutsche Bank Securities Inc. Page 39
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