 |
| US Shale Negative Outlook |
By Asjylyn Loder
in New York
Swift Energy Co. (SFY) has slowed drilling while
trying to sell acreage or find a partner to shoulder some of the costs. The
company on May 6 announced a $175 million joint venture with a unit of a
government-controlled energy company in Indonesia. The proceeds will be used to help pay down debt. The deal
announcement still didn’t stop Standard & Poor’s from cutting Swift’s credit
rating on May 15 and tagging the company with a negative outlook. Shares have
declined 19 percent so far this year.
“Traditionally
we’ve been a financially conservative company,” said Bruce Vincent, president
of Houston-based Swift. “We’ve become more leveraged than we historically have
been and we’ve become uncomfortable with that.”
Credit:
Bloomberg.net
No comments:
Post a Comment