Summary: PTT Exploration and Production Public Co. Ltd.

Strategic importance to PTT and the government of Thailand. Strong domestic position in the upstream business. Solid profitability. Dependence on the parent. Aggressive growth plans and related heavy capital expenditure requirements. Execution risk for the development of the company's substantial proven but undeveloped fields. Strong cash flow generating capability. Strong access to external funding. The stable outlook on PTTEP reflects our expectation that the company's solid operating cash flows and organic growth rather than significant debt-funded acquisitions will enable it to maintain its debt-to-EBITDA ratio at 1.0x-1.5x over the next two to three years. We may lower the rating on PTTEP if any of the following occurs: Debt-financed acquisitions or capital expenditure causes PTTEP's free operating cash flows to remain

Summary