EOG Assets Inc. has priced $1 billion senior notes due 2054 with a 5.65 p.c semi-annual curiosity as a part of a plan to refinance approaching maturities.
Anticipated to be settled Thursday, the unsecured issuance is backed by J.P. Morgan Securities LLC, BofA Securities Inc., Goldman Sachs & Co. LLC, Wells Fargo Securities LLC, Barclays Capital Inc., Citigroup International Markets Inc., PNC Capital Markets LLC and Scotia Capital (USA) Inc. Moreover these joint book-running managers, EOG Assets has additionally roped in CIBC World Markets Corp., Truist Securities Inc., U.S. Bancorp Investments Inc. and M&T Securities Inc. as co-managers, america oil and gasoline exploration and manufacturing firm stated in a regulatory disclosure.
EOG Assets plans to make use of the proceeds for “basic company functions”, together with the reimbursement of the $500 million principal quantity of three.15 p.c senior notes due 2025, and capital expenditures, in keeping with an earlier prospectus submitting.
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Coupon funds will begin June 2025. “The notes shall be our senior, unsecured obligations and can rank equally in proper of fee with all of our different unsecured and unsubordinated indebtedness once in a while excellent”, EOG Assets advised the Securities and Change Fee. “The notes shall be successfully subordinated to any of our secured indebtedness, to the extent of the worth of the belongings securing such indebtedness, until the notes grow to be equally and ratably secured by these belongings. The notes may also be structurally subordinated to the indebtedness and all different obligations of our subsidiaries”.
Every observe quantities to at the very least $2,000. Notes higher than the minimal shall be in integral multiples of $1,000.
Houston, Texas-based EOG Assets had $4.41 billion in present liabilities as of the tip of the third quarter, together with $34 million in present portion of long-term debt. “The corporate anticipates refinancing debt maturities due within the subsequent 12-18 months whereas sustaining a money stability much like the previous a number of quarters”, it stated in its quarterly report.
In the meantime EOG Assets’ present belongings stood at $10.17 billion as of September, together with $6.12 billion in money and money equivalents.
EOG Assets reported $1.67 billion in web revenue and $1.64 billion in adjusted web revenue for the July–September interval, each down in comparison with the identical quarter final yr as decrease realized pure gasoline costs within the U.S. offset a rise in oil value realizations and manufacturing. It produced a complete of 99 million barrels of oil equal, or 1.08 million barrels of oil equal a day, with oil and gasoline output each rising year-on-year in EOG Assets’ two international locations of manufacturing, the U.S. and Trinidad.
Adjusted earnings per share of $2.89 beat the Zacks Consensus Estimate of $2.73, a median of projections by brokerage analysts.
To contact the creator, electronic mail jov.onsat@rigzone.com
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