Exhibit (c)32
Citigroup Global Markets Inc. | Global Energy Group July 2019 Project Prairie 2.0 REX Counterparty Analysis Strictly Private and Confidential
REX Counterparty Credit Analysis Selected REX Counterparties $ in millions unless otherwise noted Current Net Debt / Total Debt /PV-10 / PDP / Total Proved PD Equity 2019E EBITDA Credit Ratings Company Firm Value Capitalzation Reserves Reserves Total Debt (x) Commentary On Possible Dow ngrade Value (x) (2) Rating Outlook (%) ($/mboe) ($/mboe) If oil prices dropped w ell below the long-term price assumption of $55 per barrel of oil equivalent (/boe) for a long period, or if BP’s shareholder distributions BP $141,814 $160,911 1.2x 26.7% $3.28 $6.06 2.9x NA A1 /A- Stable exceeded w hat are assumed in the base case. S&P ratings could be low ered if FFO to debt remained below 30% for a long period The addition of Anadarko’s and Western Midstream’s debt, as w ell as new debt Under to fund the cash portion of the acquisition, w ould w eaken Oxy’s credit measures Occidental Pet rporation 43,975 91,321 2.5 67.0 9.76 9.60 1.8 0.9x A3 / A Review beyond levels that S&P view s as comfortable for the rating, w ithout significant near-term debt repayment A history of inconsistent capital productivity and reserves replacement, cash flow highly sensitive to oil price volatility and limited visibility around longer term(3-Con 68,724 64,578 0.2 7.3 3.41 4.52 3.8 NA A3 / A Stable 5 year) development plans. Moody’s ratings could be RCF/debt falling below 30%, LFCR falling below 1.5x Ratings on Sempra and its subsidiaries could be low ered w ithin the next six months by one or more notches if w e do not see explicit steps being taken by Se 37,924 54,562 5.6 54.5 NA NA NA NA Baa1 / BBB+ Negative regulators or state officials to address w ildfire related risk applicable to California electric utilities’ regulatory construct. Moody’s ratings could be low ered if CFOpre-W/C to debt ratio in excess of 16% in 2020 Less mature Delaw are Basin and STACK/SCOOP assets w ill increase capital (3) Marat 11,225 14,785 1.2 24.3 4.29 7.32 2.3 1.6 Baa3 / BBB Stable intensity and high sensitivity of cash margins to oil prices. S&P might low er ratrings is FFO to debt stayed below 45% for a prolonged period Assuming the company’s business risk profile is unchanged, S&P ratings might be low ered if ECA’s capital spending accelerated w ithout the company realizing Encan 6,975 13,295 1.8 48.0 5.59 6.77 1.6 1.2 Ba1 / BBB Stable improved cash flow generation, such that it generated negative discretionary cash flow and its three-year w eighted-averageFFO-to-debt ratio fell below 30% Cash flow metrics highly levered to natural gas prices w hich are expected to remain w eak, high basin and commodity concentration relative to most investment EQT Corp 3,850 8,862 2.3 30.5 1.36 2.62 2.9 1.4 Baa3 /BBB- Stable grade E&Ps and asset base has high capital intensity ow ing to shale production focus. S&P ratings might be low ered if FFO to debt fell w ell below 30% Lack of free cash flow and aggressive volume grow th strategy historically, geographic concentration in a single basin and significant PUD reserves and Antero 1,643 5,119 2.1 24.9 1.16 2.01 3.6 1.3 Ba2 / BB+ Positive significant costs associated w ith unused firm transportation commitments. S&P ratings might be low ered if FFO to debt fell w ell below 30% Natural gas w eighted production and concentration in the Utica Shale, challenge to develop resources through reinvestment of operating cash flow and funding Gulfport E 720 2,546 2.4 38.2 2.64 5.92 1.7 0.7 Ba3 /BB- Stable and execution risks in a w eak commodity price environment. S&P ratings might be low ered if FFO to debt to averaged below 20% w ith no clear path to improvement Potential need to renegotiate financial covenants, w eak, range-bound natural gas prices and a large basis discount to Henry Hub prices limit cash flow generation, Ultra Petroleum 31 1,947 4.6 164.1 3.77 4.91 1.3 NA Caa1 / CCC+ Negative large natural gas position w ith little liquids production and concentrated in one basin (Green River Basin of southw est Wyoming). Moody’s could dow ngrade if RCF to Debt remains below 10% Ratings might be low ered if FFO to debt fell below 20% for a sustained (2) basis, w hich w ould most likely occur due to low er commodity prices leading to Ascent Res -—- 2.4 NA 2.0 4.8 2.3 NA B1 / B+ Stable a decline in profitability, or if management pursued a more aggressive spending plan or financial policy, resulting in w eaker credit measures High $141,814 $160,911 5.6x 164.1% $9.76 $9.60 3.8x 1.6x Median 11,225 14,785 2.3 34.3 3.34 5.42 2.3 1.3 Grey Shading Denotes East to West Customers Mean 35,206 46,220 2.4 48.6 3.73 5.45 2.4 1.2 Low 720 2,546 0.2 7.3 1.16 2.01 1.3 0.7 Source: Public Filings and Wall Street Research. Market data as of 7/2/2019. (1) Net debt / total capitalization is book value. (2) Represents Q1 2019 annualized EBITDA for Ascent. 1 (3) Credit rating was recently upgraded in the last two months.
REX Counterparty Trading Levels LTM Bid Price(1) 140.000 136.069 130.000 128.794 120.000 114.194 110.000 109 107. .438 375 106.393 100.000 100 95. .143 108 91 92. .750 625 90.000 80.000 76.375 70.000Jul-18Aug-18Oct-18Dec-18Mar-19May-19Jul-19 EQT 3.900% due 2027 Encana Corp 7.375% due 2031 ConocoPhillips Co 4.950% due 2026 BP 3.723% due 2028 Sempra 3.400% due 2028 Occidental Petroleum 8.450% due 2029 Marathon Oil 4.400% due 2027 Newfield Exploration (Encana) 5.375% due 2026 Antero Resources 5.000% due 2025 Ascent Resources 7.000% due 2026 Gulfport Energy 6.375% due 2026 Issue Maturity Issue Ratings July 2, 2019 Issuer Issue Coupon Date Date Size (mm) Moody’s S&P Price YTW (yr)T-spreadG-spread Investment Grade / Crossover EQT Senior Notes 3.900%Sep-17Oct-27 1,250 Baa3 /BBB- 95.143 4.61% (27) +266 +273 Encana Corp Senior Notes 7.375%Oct-01Nov-31 500 Ba1 / BBB 128.794 4.33% (31) +238 +231 ConocoPhillips Co Senior Notes 4.950%Mar-16Mar-26 1,250 A3 / A 114.194 2.55% (25) +59 +75 ConocoPhillips Co Senior Notes 4.150%Nov-14Nov-34 246 A3 / A 108.066 3.45% (34) +150 +136 BP Senior Notes 3.279%Sep-17Sep-27 1,500 A1 /A- 103.788 2.75% (27) +79 +88 BP Senior Notes 3.723%Nov-16Nov-28 800 A1 /A- 107.438 2.80% (28) +84 +87 Sempra Senior Notes 3.400%Jan-18Feb-28 1,000 Baa1 / BBB+ 100.108 3.39% (27) +143 +150 Occidental Petroleum Senior Notes 7.200%Apr-98Apr-28 82 A3 / A 125.858 3.71% (28) +175 +180 Occidental Petroleum Senior Notes 8.450%Feb-99Feb-29 116 A3 / A 136.069 3.91% (29) +196 +197 Marathon Oil Senior Notes 4.400%Jul-17Jul-27 1,000 Baa3 / BBB 106.393 3.46% (27) +150 +159 Newfield Exploration (Encana) Senior Notes 5.625%Jun-12Jul-24 1,000 Ba1 / BBB 111.250 3.17% (24) +144 +144 Newfield Exploration (Encana) Senior Notes 5.375%Mar-15Jan-26 700 Ba1 / BBB 109.375 3.68% (25) +173 +189 High Yield Antero Resources Senior Notes 5.625%Feb-16Jun-23 750 Ba3 / BB+ 97.000 6.51% (23) +478 +480 Antero Resources Senior Notes 5.000%Jun-17Mar-25 600 Ba3 / BB+ 92.625 6.58% (25) +486 +482 Ascent Resources Senior Notes 7.000%Sep-18Nov-26 600 B2 /BB- 91.750 8.54% (26) +658 +669 Gulfport Energy Senior Notes 6.375%Aug-17May-25 600 B1 /BB- 77.250 11.87% (25) +1014 +1010 Gulfport Energy Senior Notes 6.375%Feb-18Jan-26 450 B1 /BB- 76.375 11.64% (26) +969 +984 Ultra Petroleum Senior Notes 7.125%Apr-17Apr-25 225 Caa3 / D 10.000 83.57% (25) +8185 +8181 2 Source: Citi Trading Desk, TRACE, Advantage Data. 1) Graph excludes Ultra Petroleum notes.
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