Occidental Petroleum Corp.’s
most active bonds collapsed on Monday as the carnage in the markets sparked by an oil price war between Saudi Arabia and Russia shattered confidence in the oil and gas company. Occidental is targeting $ 15 billion in proceeds to be sold to repay the leverage after it acquired Anadarko last year. The 4.400% of the company indicates that the maturity in August 2049 slipped to 63 cents on the dollar, against 90.14 cents late in the day Friday, according to data from MarketAxess. Bonds were 289 basis points wider on the day for a yield spread of 665 basis points on comparable Treasurys. Earlier, SunTrust Robinson Humphrey demoted Western shares to sell them on hold and lowered its price target from $ 15 to $ 15. “Although the company has already made progress on the divestiture front, we believe that the decline in future crude oil prices, associated with an inflated balance sheet due to the acquisition of Anadarko, and an environment of mergers and acquisitions that we do not see improving in the near future, a difficult situation for the company, in particular when it is associated with the annual and preferred dividend bonds of OXY> 3 billion dollars, “wrote analysts. in a note. “We believe that OXY may soon need to take a number of strategic steps to resolve the ongoing issues, including a significant reduction in drilling activity, a further reduction in the number of heads, and possibly even a reduction in its large common dividend. “The stock fell 29%.