The rating continues to be supported by the Company's (1) substantial size, both in its Upstream and Downstream segments; (2) integrated operations; (3) above-average geographic diversification; (4) planned projects to replace and grow production; and (5) adequate liquidity. The rating also takes into account
Chevon entered the Coronavirus Disease (COVID-19) pandemic with a strong balance sheet and metrics supportive of the AA rating. During 2020, key credit metrics deteriorated significantly because of weak earnings and cash flow, new debt issuances to fund free cash flow (FCF; after dividends and capital expenditures (capex)) deficit, and incremental debt from the acquisition of
In 2021,
The Company's liquidity position is adequate with
A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/373262.
Notes:
All figures are in
The principal methodologies are Rating Companies in the Oil and Gas and
For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.
The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link under Related Documents or by contacting us at info@dbrsmorningstar.com.
This rating was not initiated at the request of the rated entity.
The rated entity or its related entities did not participate in the rating process for this rating action. DBRS Morningstar did not have access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.
This is an unsolicited credit rating.
Generally, the conditions that lead to the assignment of a Negative or Positive trend are resolved within a 12-month period. DBRS Morningstar trends and ratings are under regular surveillance.
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Ratings
Date Issued Debt Rated Action Rating Trend Attributes
i
US = Lead Analyst based in USA
CA = Lead Analyst based in
EU = Lead Analyst based in EU
E = EU endorsed
U =
Unsolicited Participating With Access
Unsolicited Participating Without Access
Unsolicited Non-participating
08-Apr-21 Issuer Rating Confirmed AA Neg CA
08-Apr-21 Issuer Rating Trend Change AA Stb CA
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