PTT Exploration and Production Public Co. Ltd. Primary Credit Analyst: Xavier Jean, Singapore, (65) 6239-6346; xavier.jean@spglobal.com Secondary Contact: Bertrand P Jabouley, CFA, Singapore, (65) 6239-6303; bertrand.jabouley@spglobal.com 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
