ConocoPhillips (NYSE:COP), a global energy corporation with a market capitalization of $135.35 billion, announced on Thursday the issuance of $5 billion in senior notes through its subsidiary, ConocoPhillips Company. The offering comprises five different series of notes, with maturities ranging from 2030 to 2065, and interest rates between 4.700% and 5.650%. According to InvestingPro data, the company maintains strong cash flows sufficient to cover interest payments, making this debt issuance a strategic move.
The notes were issued under a Terms Agreement dated November 25, 2024, between ConocoPhillips Company, ConocoPhillips, and several underwriters. The agreement specifies the sale of $1.35 billion of 4.700% notes due 2030, $650 million of 4.850% notes due 2032, $1.25 billion of 5.000% notes due 2035, $1.3 billion of 5.500% notes due 2055, and $650 million of 5.650% notes due 2065. Each series of notes is fully and unconditionally guaranteed by ConocoPhillips.
The notes were issued pursuant to an Indenture dated December 7, 2012, between ConocoPhillips Company, as issuer, ConocoPhillips, as guarantor, and The Bank of New York Mellon (NYSE:BK) Trust Company, N.A., as trustee. The terms of the notes are detailed in the prospectus supplement and related prospectus filed with the Securities and Exchange Commission on November 26, 2024. The company operates with a moderate debt-to-equity ratio of 0.37, reflecting prudent financial management.
Currently trading at $104.44, near its 52-week low, InvestingPro analysis suggests the stock is slightly undervalued. For comprehensive insights and access to the detailed Pro Research Report covering ConocoPhillips and 1,400+ other US stocks, consider subscribing to InvestingPro.
In addition to the merger, ConocoPhillips has reported a strong third-quarter performance, exceeding both production and earnings per share expectations. Analyst firm Susquehanna maintained a positive rating on the company, raising the stock's target price to $148. The firm's analysis follows ConocoPhillips' announcement of plans to return $9 billion to shareholders in 2024, including a $2 billion share repurchase for Q4 and a $20 billion increase in share repurchase authorization.
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