Fitch Updates Oil and Gas Price Decks

CHICAGO--()--Link to Fitch Ratings' Report: Updating Fitch's Oil & Gas Price Deck

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754047

Fitch Ratings has raised its 2014 U.S. oil and natural gas price deck, as discussed in a special report.

Fitch's updated 2014 base case West Texas Intermediate (WTI) is $100 per barrel (bbl) with the long-term base case price has been flat at $75 per bbl. 2014 stress case WTI was raised to $70.00 per bbl, while long-term stress case prices remain unchanged at $50.00 per bbl.

Current oil prices remain well above Fitch's long-term base case expectations. While prices could remain elevated in the near term, Fitch believes that risks to oil prices on the downside remain significant given weak demand growth and shale-driven gains in domestic supply.

Fitch has raised its 2014 U.S. natural gas price deck to $4.25 per thousand cubic feet (mcf), while holding long-term prices unchanged at $4.50 per mcf. This reflects improvement in prompt natural gas market conditions caused by the combination of increased demand in the first quarter and only modest increases in overall domestic gas production.

Fitch notes that forward prices into 2016 remain under $4 per mcf due to the oversupply from shale gas production and a lack of visibility on major new sources of demand until 2016-2018. However, the most economic North American gas basins, including the Marcellus, will continue to see development activity.

The full report 'Updating Fitch's Oil and Gas Price Deck' is available at 'www.fitchratings.com.'

Additional information is available at 'www.fitchratings.com'.

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Contacts

Fitch Ratings
Sean Sexton, CFA, +1 312-368-3130
Managing Director
Fitch Ratings, Inc.
70 West Madison St.
Chicago, IL 60602
or
Mark C. Sadeghian, CFA, +1 312-368-2090
Senior Director
or
Media Relations:
Brian Bertsch, +1 212-908-0549
brian.bertsch@fitchratings.com

Contacts

Fitch Ratings
Sean Sexton, CFA, +1 312-368-3130
Managing Director
Fitch Ratings, Inc.
70 West Madison St.
Chicago, IL 60602
or
Mark C. Sadeghian, CFA, +1 312-368-2090
Senior Director
or
Media Relations:
Brian Bertsch, +1 212-908-0549
brian.bertsch@fitchratings.com