Bulletin: PTTEP's Murphy Assets Acquisition Will Add Some Scale And Reserve Life; Financial Headroom Remains

SINGAPORE (S&P Global Ratings) March 22, 2019--S&P Global Ratings today said that the proposed acquisition by PTT Exploration and Production Public Co. Ltd. (PTTEP; BBB+/Stable/--) of assets from Murphy Oil Corp. will enhance PTTEP's scale and reserve life. We also believe that PTTEP's 'bbb' stand-alone credit profile (SACP) has sufficient financial headroom to absorb the cost of the acquisition, given the company's sizable net cash balance. The acquisition cost of Murphy Sabah Oil Co. Ltd. and Murphy Sarawak Oil Co. Ltd. is US$2,127 million (plus up to US$100 million contingent payment depending on some exploratory drilling results). PTTEP has US$4.1 billion of cash and cash equivalents as of Dec. 31, 2018, compared with reported debt of US$1.9 billon. In our

...SINGAPORE (S&P Global Ratings) March 22, 2019--S&P Global Ratings today said that the proposed acquisition by PTT Exploration and Production Public Co. Ltd. (PTTEP; ###+/Stable/--) of assets from Murphy Oil Corp. will enhance PTTEP's scale and reserve life. We also believe that PTTEP's '###' stand-alone credit profile (SACP) has sufficient financial headroom to absorb the cost of the acquisition, given the company's sizable net cash balance. The acquisition cost of Murphy Sabah Oil Co. Ltd. and Murphy Sarawak Oil Co. Ltd. is US$2,127 million (plus up to US$100 million contingent payment depending on some exploratory drilling results). PTTEP has US$4.1 billion of cash and cash equivalents as of Dec. 31, 2018, compared with reported debt of US$1.9 billon. In our view, PTTEP remains as a core subsidiary of PTT Public Co. Ltd. (###+/Stable/--) following the acquisition. Upon closure of the transaction, PTTEP's production will increase by 48 thousand barrels of oil equivalent per day (kboed),...

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