ConocoPhillips (COP) to Sell Notes for Financing Surmount Buyout
ConocoPhillips (COP) declared in a filing on Tuesday that it will offer notes to raise funds for its acquisition of the remaining 50% stake in Surmont oil facility in Canada, worth $3 billion.
The U.S. oil gas producer, based in Houston, TX, did not specify the amount that it was hoping to raise through the notes, which it said would be included in senior unsecured debt.
Conoco had previously stated in May that it will take full ownership of Surmont after acquiring the remaining 50% of the company from TotalEnergies' Canadian subsidiary. Surmont is a portion of the Canadian oil sands that contains some of the largest crude reserves in the world.
In May, Conoco issued notes worth $1.1 billion. As of Jun 30, the company had total debt of $16.44 billion.
The deal is anticipated to be finalized in the second half of 2023.
Zacks Rank & Key Picks
Currently, ConocoPhillips carries a Zack Rank #3 (Hold).
Some better-ranked stocks in the energy space are CVR Energy Inc. CVI, Murphy USA Inc. MUSA and Crestwood Equity Partners LP CEQP. While CVI sports a Zacks Rank #1 (Strong Buy), both MUSA and CEQP carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
CVR Energy is an independent refiner and marketer of high value transportation fuels. Headquartered in Sugar Land, TX, CVI has 1,470 employees. It is also engaged in nitrogen fertilizer manufacturing business through its interest in CVR Partners, LP.
Murphy USA serves 1.6 million customers daily and owns a dedicated line on the Colonial Pipeline. It operates stations near Walmart supercenters and is a low-cost, high-volume fuel seller. This enables the company to attract significantly more transactions than its peers.
Headquartered in Houston, TX, Crestwood is a master limited partnership that provides a wide range of fee-based infrastructure solutions in major U.S. shale plays like the Bakken Shale, Delaware Basin, Powder River Basin, Marcellus Shale and others. The company is least exposed to commodity price fluctuations since it generates stable fee-based revenues from diverse midstream energy assets via long-term contracts.
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