S&P removes Chevron from watch; view stable

S&P said its issuer credit and senior unsecured ratings on Chevron Corp. remain AA and the short-term and commercial paper ratings on the company remain A-1+. S&P removed the ratings from CreditWatch with negative implications.

Anadarko Petroleum has terminated its merger agreement with Chevron, following its acceptance of Occidental Petroleum's rival offer. Chevron has received a $1 billion breakup fee. Chevron has increased expected share repurchases to $5 billion per year.

“We are returning the outlook to stable, reflecting our expectation that Chevron will maintain funds from operations (FFO)/debt above 60% and debt/EBITDAX below 1.5x, while increasing production 4%-7% in 2019 and attaining a compound average growth rate of 3%-4% through 2023,” S&P said in a news release.

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