...Karoon Energy Limited's rating and Outlook reflect a strong financial profile that is limited by the company's small scale of operations and limited reserves, concentrated across the Santos Basin in Brazil and in the US Gulf of Mexico (US GoM). The constraints are alleviated to some extent by lower counterparty and volume risks from the long-term volume off-take agreement with Shell plc (AA-/Stable) and its low-cost position. The Stable Outlook reflects Fitch Ratings' expectations that Karoon Energy will continue to explore new fields to address the reserve depletion at its Brazilian assets while maintaining a conservative capital structure....
