Oil and gas companies had a record year in 2022 and continued to improve their positions in the eyes of investors.


In a new report, credit ratings analysts at Moody’s Investors Services said upgrades in the oil and gas industry far outpaced downgrades in 2022, mainly because of considerable debt reduction policies at companies across the hydrocarbons value chain. Moody’s noted a similar trend in 2021.

The analysts, however, said they saw the pace of upgrades slowing in 2023, with oil and gas companies still remaining focused on maximizing shareholder distributions. Going forward, initiatives to reduce emissions would also impact cash flow at oil and gas companies, the analysts said.

“Industry cycles will continue to influence oil and gas companies’ financial...