Ecopetrol S.A. EC has redeemed in advance the entire 10-year international bond issued in 2009, in sync with the announcement made on Nov 27, 2018
Per the terms of the bond, the redemption price was $1,025.48 on principal amount of $1,000, corresponding to about $1.5 billion. Additionally, accrued interest as of the redemption date of $32.62 per $1,000 principal amount corresponds to $48,927,083.33. Therefore, total payment made by Ecopetrol was equal to $1,058.10 per $1,000 principal amount, corresponding to $1,587,146,344.76.
With this redemption, Ecopetrol has conformed to 79% of its consolidated debt amortization payments estimated for 2019. The redemption yields financial savings for the Ecopetrol Group and enhances the company's credit. This will enable the company to increase cash flexibility to fund the Group's operations.
The redemption is in sync with Ecopetrol's 2020 business plan and complies with the company's commitment to improving credit rating and boosting shareholder returns.
Ecopetrol is an integrated energy player engaged in upstream, midstream and downstream operations. The company’s operations are concentrated primarily in Colombia. The company also conducts operations in Mexico, Peru, Brazil and Gulf Coast of the United States. The government of Colombia has 88.49% interest in Ecopetrol, making it one of the biggest state-owned energy firms in the world.
In the nation, Ecopetrol covers the largest exploration acreage with the highest domestic crude and natural gas production. Majority of the oil pipelines in Colombia are owned by Ecopetrol. This enables the company to transport massive crude volumes to the principal markets from the producing fields.
Zacks Rank & Key Picks
Currently, Ecopetrol sports a Zacks Rank #3 (Hold).
A few better-ranked players in the energy space are SunCoke Energy, Inc SXC, Shell Midstream Partners, L.P SHLX and Unit Corporation UNT. You can see the complete list of today’s Zacks #1 Rank stocks here.
SunCoke acquires, owns and operates coke making as well as coal mining operations. The company delivered average positive earnings surprise of 302.6% in the last four quarters.
Headquartered in Houston, TX, Shell Midstream Partners owns, operates, develops and acquires pipelines and other midstream assets. The company is expected to witness year-over-year earnings growth of 18.7% in 2018.
Unit Corp is a diversified energy company. The company has an average positive surprise of 21.2% in the last four quarters.
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