Analysts give E&P sector’stable’outlook tor now

摘要

The next 12 to 18 months could bring a slowdown in capital efficiency gains,little to no growth in earnings,robust but slower production growth and flat free cash flow growth for the E&P sector,according to Moody's Investors Service.More consolidation—a positive for the industry—could also be ahead as companies—mainly U.S.shale players—try to hit production targets and fulfill promises to shareholders.But the”stable”outlook Moody's gave the global E&P sector could turn negative if already unstable oil prices fall lower than expected and companies’EBITDA dip by 5% or more.”A stable outlook for the global E&P industry reflects our expectations that the industry will generate little to no earnings growth through 2020,”Sajjad Alam,Moody's vice president and senior analyst,said in a statement.”Volatile oil prices and weak natural gas prices,shareholder demands,a slowing global economy and persistent supply growth all pose risks to earnings,although hedges,volume growth,narrower basis differentials and other factors will offer partial relief.”