Energy company Occidental (NYSE: NYSE:OXY) has terminated its planned exchange offer for certain senior notes issued by CrownRock L.P. and CrownRock Finance, Inc., according to a statement released today.
The canceled deal involved exchanging up to $376 million in aggregate principal amount of 5.000% Senior Notes due 2029 with new notes issued by Occidental along with a cash component.
The offer, which also included a solicitation of consents to adopt proposed amendments to the governing indenture for the CrownRock Notes, will not proceed. Consequently, the amendments to the indenture will not take effect.
Holders who had already tendered their CrownRock Notes for exchange will have their notes returned promptly.
Global Bondholder Services Corporation, which served as the exchange agent and information agent for the exchange offer and consent solicitation, is the point of contact for queries following the termination of the offer.
Occidental, an international energy company with significant operations in the United States, the Middle East, and North Africa, is known for being a leading oil and gas producer in several key U.S. basins.
The company also has a midstream and marketing segment, a chemical subsidiary OxyChem, and a low-carbon ventures subsidiary focused on carbon management and emission reduction technologies.
The termination of the exchange offer and consent solicitation is a strategic move by Occidental, which has been navigating the complexities of the energy market, including fluctuations in commodity prices, regulatory changes, and broader economic conditions.
InvestingPro Insights
In light of Occidental's (NYSE: OXY) recent termination of its planned exchange offer, investors may be seeking additional context to understand the company's current financial health and future outlook. InvestingPro data and tips offer valuable insights into Occidental's market position and performance.
InvestingPro Data highlights Occidental's market capitalization at $52.65 billion, reflecting the company's substantial presence in the energy sector. Despite a challenging environment, Occidental has maintained a stable price-to-earnings (P/E) ratio of 14.99, which modestly increased to 18.11 over the last twelve months as of Q1 2024. This suggests that investors have confidence in the company's earnings potential relative to its share price.
A notable metric is the company's revenue growth, which saw a decline of 23.95% over the last twelve months as of Q1 2024. This could be indicative of the market challenges Occidental is facing, including the fluctuations in commodity prices mentioned in the article. Additionally, the dividend yield stands at 1.48%, showcasing the company's commitment to returning value to shareholders, supported by a record of 51 consecutive years of dividend payments.
InvestingPro Tips provide further context, with analysts predicting that Occidental will remain profitable this year, a sentiment backed by the company's profitability over the last twelve months. This is a key consideration for investors gauging the company's resilience amidst market uncertainties. Moreover, the stock is noted for its low price volatility, which could appeal to investors seeking stability in their portfolios.
For investors looking for more comprehensive analysis and additional InvestingPro Tips, there are 16 more tips available on the InvestingPro platform for Occidental, which can be accessed at https://www.investing.com/pro/OXY. These tips can provide deeper insights into the company's performance and assist investors in making informed decisions.
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