Digital Assets in Capital Markets

Advanced course on digital assets - assets created using a blockchain/DLT network - designed for finance professionals.

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15 November 2022 (Tuesday) | 9am-5pm

Occidental (Oxy) is buying back $2.5bn of its bonds in an effort to cut its debt after reporting strong earnings. Its net income in Q4 2021 stood at $1.3bn as compared to a loss of $1.3bn in Q4 2020. The positive results come after average WTI and Brent prices were at $77.19 and $79.76 per barrel respectively. Average worldwide realized crude oil prices increased by ~10% QoQ. Besides, Chemicals pre-tax income was at $574mn, exceeding guidance by $94mn.

On the back of its strong results, Oxy launched a tender offer Monday to repurchase 15 tranches of notes with maturities ranging from 2023 to 2049, across two pools. Under Pool 1, it agrees to purchase 8 bonds for $1.5bn from its 2023s to 2025s. Under Pool 2, it agrees to purchase 7 bonds for $1bn from its 2045s to 2049s. The offer expires on March 4, 2022.

Oxy’s dollar bonds were trading higher – its 3.2% 2026s were up 2.9 points to 100.38, yielding 3.11%.

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