...Sector Outlook Stable: Fitch Ratings' outlook for the North American Exploration and Production (E&P) sector is stable in 2018, given volume growth, improving cost structures and a benign price environment. Metrics have generally strengthened since last year, supported by rising oil prices, efficiency-led improvements in break-even costs, and actions taken by managements to reduce balance sheet debt as part of capital structure recalibrations. While the outlooks for most North American investment-grade E&P companies in our rated universe are stable, of those that are not, the number of Positive Outlooks outweighs Negative Outlooks. Favorable Macroeconomic Environment: The macroeconomic environment for oil prices improved substantially since 2017. West Texas Intermediate (WTI) and Brent prices averaged $65 per barrel (bbl) and $71bbl in first-half 2018, versus $50bbl and $52bbl, respectively, in first-half 2017. Increases were driven by several factors, including synchronized global GDP...
