Moodys changes Alta Mesas outlook to negative Folks, Each of you need to read this June 6, 2014 Moodys report on Alta Mesa. In case you were not aware, Alta Mesa is the company actively drilling gas wells in Southwestern Idaho. Heres a snippet from their report: Rating Action: Moodys changes Alta Mesas outlook to negative Global Credit Research - 06 Jun 2014 Approximately $450 million of rated debt affected New York, June 06, 2014 -- Moodys Investors Service changed Alta Mesa Holdings, LPs (Alta Mesa) rating outlook to negative. At the same time, Moodys affirmed Alta Mesas B2 Corporate Family Rating (CFR), B2-PD Probability of Default Rating (PDR), B3 senior unsecured note rating, and SGL-3 Speculative Grade Liquidity Rating. Despite significant capital spending and considerable growth in liquids production since 2011, Alta Mesa has not achieved the scale or the level of cash flow that are comparable to other B2 rated E&P companies, commented Sajjad Alam, Moodys Analyst. On the contrary, heavy outspending over the past several years has pushed leverage higher and the company has struggled to maintain production and reserves. Overall production declined to 15,000 barrel of oil equivalent (boe) per day (pro forma for the Eagle Ford asset sale) in 2013 from 19,000 boe per day in 2011 with reserves declining 9% during that same period. Additionally, while the sale of certain oily Eagle Ford assets in early 2014 will temporarily improve liquidity and leverage, margins and cash flows will shrink and Alta Mesa will face higher execution risk as it shifts capital to the technologically challenging salt dome reservoirs in Louisiana and mature and less prolific fields in Oklahoma. Issuer: Alta Mesa Holdings, LP ..Ratings Affirmed: .... Corporate Family Rating, B2 .... Probability of Default Rating, B2-PD .... Senior Unsecured Rating, B3 (LGD5-70%) .... Speculative Grade Liquidity Rating, SGL-3 ..Outlook Action ....Changed Outlook to Negative from Stable What you should ALSO know: Alta Mesa is the same company who has vigorously fought baseline water testing requirements here in Idaho for over three years. Did you know that in Idaho we get 95% of our drinking water from underground aquifers? Alta Mesa does not want any setbacks from their gas wells (or any other industry infrastructure, such as tank farms or wastewater impoundment structures) to homes, schools, hospitals, nursing homes, parks, churches, rivers, irrigation canals, etc. Did you know that because of HB 464, local cities and counties have NO input on where oil and gas wells can be located? Think if you sit on the Boise City Council and Alta Mesa proposes drilling a dozen wells in Julia Davis Park youll have any say so? Think again. Ground Water in Idaho - Idaho Department of Environm... View on deq.idaho.gov Preview by Yahoo Alta Mesa does not want to disclose their secret fracking sauce. They intend to claim Title 9 exemptions, which means that we-- Idaho citizens and taxpayers-- will have no way of knowing what industry is pumping down hole (THROUGH AND PAST our drinking water aquifers). Just this week several damning reports came out, proving what industry has repeatedly denied (including Alta Mesa representatives at local and state-level meetings): Industry CONTINUES to use diesel-based drilling muds (aka invert); Industry CONTINUES to KNOWINGLY frack into aquifers, Alta Mesa wants to be able to flare indefinitely for Emissions control (per John Pieserich email on 7-23-2014 to Bobby Johnson, Oil and Gas Program Manager. Most egregious of all are comments that John Pieserich, attorney for Alta Mesa and Halliburton lobbyist, made during a negotiated rule-making session on thedraft rules governing oil and gas conservation in the state of Idaho on June 18th. Mr. Pieserich stated that Alta Mesa would be happy if they only had to lease one percent (6.4 acres) of the mineral rights in a section (640 acres) before they could petition the Idaho Oil and Gas Conservation Commission to FORCE POOL the remaining 633.9 mineral rights owners (and possibly FORCE you to have wells and other industry infrastructure ON YOUR PROPERTY--EVEN IF YOU OWN YOUR MINERAL RIGHTS!). As it stands right now, the proposed state rules would allow that to happen if only 55% of the mineral rights in a section were leased, as opposed to Wyoming where it is 85%!). Alta Mesa opposes the proposed higher well-bonding amounts in the draft rules. Why? Could it have something to do with being on shaky financial ground? Oil companies fracking into drinking water sources, new ... Energy companies are fracking for oil and gas at far shallower depths than widely believed, sometimes through underground sources of drinking water, according to re... View on latimes Preview by Yahoo We must demand that the State of Idaho-- through the IOGCC and our legislature-- PROTECT US, THE CITIZENS AND TAXPAYERS OF IDAHO. If they do not, I shudder to think what kind of mess Idahoans will be left to deal with if Alta Mesa goes belly up. It doesnt sound to me like Moodys has much confidence in Alta Mesa, and since this is the business theyre in, I would think they know of which they speak... Please feel free to share this email and the attached information far and wide! Regards, Alma Alma Hasse, Executive Director ICARE (Idaho Concerned Area Residents for the Environment) An Idaho Non-Profit Corporation Post Office Box 922 Fruitland, Idaho 83619 (208) 695-1556 Cell (208) 674-1222 Fax idahocare@yahoo NOTICE: Due to Presidential Executive Orders, the National Security Agency may have read this email without warning, warrant, or notice, and certainly without probable cause. They may do this without any judicial or legislative oversight. You have no recourse other than petitioning your elected officials and exercising your constitutional rights. See: https://ssd.eff.org/ for solutions.
Posted on: Thu, 14 Aug 2014 23:06:35 +0000
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