...More E&P Cutbacks Expected: Exploration and production (E&P) companies are signaling for a second consecutive year of capex cutbacks, which will add pressure to oilfield service provider metrics in 2016. Fitch Ratings believes capex cuts for U.S. independents will be the deepest and could be reduced an additional 20%¡30% following an average 35% cut in 2015. International oil companies (IOCs) are also likely to exhibit increased discipline in 2016, with an estimated 10%¡ 15% reduction. National oil companies' (NOCs) capital profiles are expected to be mixed. Diversified Providers Better Positioned: Diversified services providers are better positioned to weather another year of E&P capex cutbacks due to their geographic diversification, breadth and scope of services, and generally more manageable leverage profiles. However, Weatherford (BBB¡/Negative) is a notable outlier, mainly due to legacy operational and financial overhangs. Halliburton's (A¡/Stable) pending acquisition of Baker Hughes...
