PTT Exploration and Production Public Co. Ltd.

Core strategic importance to, and high operating integration with, parent PTT Public Co. Ltd. (PTT). Low lifting costs and solid operating margins. Diversity into gas, which has more stable pricing than oil. Lower proven reserve life than peers' and trend of reserve depletion over the past five years. Execution risk for the development of the company's large, but undeveloped, fields, most notably in Mozambique. Solid and fairly stable cash flow through a pricing cycle. Conservative funding policies and cash flow adequacy ratios. Large capital expenditure and potential acquisition requirements to stabilize the reserve base and develop new fields. The stable outlook on PTT Exploration and Production Public Co. Ltd. (PTTEP) reflects the outlook on PTT and S&P Global Ratings' expectation

...Business Risk: Satisfactory Financial Risk: Modest + Core strategic importance to, and high operating integration with, parent PTT Public Co. Ltd. (PTT). + Low lifting costs and solid operating margins. + Diversity into gas, which has more stable pricing than oil. + Lower proven reserve life than peers' and trend of reserve depletion over the past five years. + Execution risk for the development of the company's large, but undeveloped, fields, most notably in Mozambique. + Solid and fairly stable cash flow through a pricing cycle. + Conservative funding policies and cash flow adequacy ratios. + Large capital expenditure and potential acquisition requirements to stabilize the reserve base and develop new fields....

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