Global bond report - Occidental Petroleum

USA

Occidental Petroleum bond YTM increases by 35.7 basis points 09 May, 2018

NEWS BITES - BONDS

Occidental Petroleum Corp (OXY.GH) bond has dropped $US3.23 (or 2.6%) from its last trading session of May 07, 2018 to close at $US120.80. The bond matures in 9 years and 11 months; its yield to maturity has (YTM) increased by 35.7 basis points from 4.21% to 4.562%.

SECTION 1

ISSUE DETAILS

CUSIP: 674599BM6

1.1 Maturity & Coupon details

IssuerOccidental Petroleum
Maturity DateApril 01, 2028
Amount Outstanding$US82 million
CallableYes
Coupon7.2%
Coupon TypeFixed
Pay FrequencyHalf-yearly
Dated DateApril 01, 1998
First Coupon DateOctober 01, 1998
Interest Accrual DateApril 01, 1998

1.2 Price change % & YTM

1-day1-month3-months1-year
Price Change %-2.6-5.5-11.4
YTM change Basis Points36568-35
Spread to Treasuries %1.581.21.172.52

SECTION 2

RELATIVE VALUATION INDICATORS [RVI] TECHNICALS

2.1 Rank in Market

DescriptionValueRank In Market
Price Change %-2.6In Bottom 7%
Relative Strength (6M)7In Bottom 6%

2.2 Price Downtrend (or Yield Uptrend)

+ Falls to Rises in the past month: the number of falls outnumbered rises 3:1. The bond traded in 4 of the 22 trading days.

2.3 Price Dynamics

+ The present value of $US1,000 (PV$1000) invested one year ago in Occidental Petroleum is $US1,014, for a capital gain of $US14. The total return to investors for 1 year is 1.4%.

PV$1000 1-month 1-year
OXY.GH.N $US945 $US1,014

2.4 Present Value in USD for Occidental Petroleum (OXY.GH) bond

+ The present value of USD1,000 (PV1000) invested five years ago is $US900, for a capital loss of $US100.

+ 5 years Multiplier in USD = 0.9x

+ Compound Annual Growth Rate (CAGR) in USD = -2.1%

SECTION 3

KEY STATISTICS OF OTHER OCCIDENTAL PETROLEUM BONDS

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3.1 Time [Yrs Mo Days] and Yield to Maturity as on May 08, 2018

Short-Term

CUSIPMaturityYld %Treasury %Spread %YTM Chng 3 Mo (bps)
674599BY02 yrs 8 mo 23 d2.952.690.2641

Medium-Term Bonds

Medium-Term Occidental Petroleum corporate bond yields (CUSIP: 674599BM6), maturing in 9 years 10 months have increased from 4.48% to 4.56% in the past quarter. Over the same period, spread with treasury has decreased 5 basis points.

CUSIPMaturityYld %Treasury %Spread %YTM Chng 3 Mo (bps)
674599BM69 yrs 10 mo 23 d4.5631.578
674599CE34 yrs 9 mo 6 d3.382.840.5433

3.2 Maturity and YTM

MaturityYield to maturity %Yrs to Maturity
Aug 20192.541.23
Feb 20212.952.73
Feb 20223.213.77
Jan to Feb 20233.38 to 3.714.68 to 4.77
Apr 20284.569.9
Feb 20294.4710.77

SECTION 4

CREDIT RATING SUMMARY

Rating AgencyRatingEffective Date
Moody'sA3February 25, 2016

SECTION 5

ACTIVITIES

Occidental Petroleum Corporation (Occidental) conducts its operations, through various oil and gas, chemical, midstream, marketing and other subsidiaries, and affiliates. The Company operates in three business segments: oil and gas segment, chemical segment, and midstream, marketing and other segment. The oil and gas segment explores for, develops, produces and markets crude oil, natural gas liquids (NGLs), condensate and natural gas. The chemical segment (OxyChem) manufactures and markets basic chemicals, vinyls and performance chemicals. The midstream, marketing and other segment (midstream and marketing) gathers, treats, processes, transports, stores, trades and markets crude oil, natural gas, NGLs, condensate and carbon dioxide (CO2) and generates and markets power. In February 2008, Occidental purchased from Plains a 50% interest in oil and gas properties in the Permian Basin and western Colorado.

SECTION 6

STOCK DETAILS

6.1 Market Position

Occidental Petroleum Corporation (NYSE:OXY), the NYSE's 2nd largest Exploration & Production company by market cap, jumped $US22.52 (or 37.6%) in the trailing 12 months to May 09, 2018 to close at $US82.40. This means the stock has outperformed 87% of NYSE-listed stocks in the same period. Compared with the S&P 500 Index which has risen 12.4% over the same period, this is a relative price increase of 25.2%. Average daily volume in the trailing 12 months equalled average trading of 4.5 million shares in the previous year.

6.2 Global Rank

Rank in the S&P 500 Index [out of 489 stocks]

DescriptionValueRank
MCap (US$)63.1B83
Total Assets (US$)42B138
Revenue (US$)13.3B164
Net Profit (US$)1.3B171
Return on Equity %6.4376
Net Profit Margin %9.9246
Price to Book3.1128
Price Earnings48.2344
Yield %3.755
PV$1000 (1Year) US$1,43952
% Change YTD11.981

6.3 Independent Ratings

Occidental Petroleum Corp was ranked 17 in IHS Energy's list of Top 50 Energy Companies 2013; unchanged over a year from the same rank 17 in 2012.

It was ranked 116 by total revenues in the Fortune 500 annual list for 2014; an improvement over a year from rank 125 in 2013.

It is the 203rd largest company in the Platts Top 250 Global Energy Company Rankings.

It is the 214th largest by revenue in the FT Global 500.

It is a new entrant in the Industry Week list of the world's largest 1000 manufacturers by Revenues in 2016, ranked 310.

It was ranked 367 by Newsweek and Corporate Knights Capital in the World's 500 Greenest Companies 2016.

It is the 488th largest by revenue in the Forbes Global 2000.

6.4 Stock News and Analysis

Occidental Petroleum hits 52-week high fourth time in one month

Occidental Petroleum, NYSE's 2nd largest exploration & production company by market capitalisation, hit a 52-week high of $US83.82 today for the fourth time in the past one month and last traded at $US82.40. This brought its two-day rise to $US5.12 or 6.6%. Trading volume was 2.5 times average at the end of the day. Compared with the S&P 500 Index which rose 25.9 points (or 1%) in the day, this represented a relative price increase of 4.4%.

Technical indicators complementing today's significant uptrend:

+ The positive 2.51 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ In the NYSE market, the stock's relative price strength percentile is rising at 88 for 6 months, 88 for 3 months and 94 for 1 month.

+ In the last one month the stock has hit a new 52-week high four times, pointing to an uptrend.

+ The price jumped 7.2% in the last week and soared 19.5% in the last month.

+ The present value of USD1,000 invested one year ago is $US1,439 [vs $US1,126 for the S&P 500 Index].

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

+ Dividend yield of 3.7% [1.6%]

+ Return on Equity 6.4% [5.6%]

+ Return on Assets 3.1% [2.3%]

+ Return on Capital Employed 3.8% [1.8%]

Other Bullish Signals include:

+ Total Liabilities/EBITDA of 4 is less than the Joseph Piotroski benchmark of <5.

+ Tobin's Q Ratio is 1.5. Compared with the rest of the market the stock is undervalued.

+ As per the Du Pont analysis, Return on Equity is less than stellar at 6.4%.

Note

Overbought/Bearish:

The 1.7% discount to 12-month high of $US83.82 against the 42.5% premium to 12-month low of $US57.84 suggests the climb might be peaking.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

Price/Earnings of 48.2 [43.0]

Price/Sales of 4.8 [2.0]

Source: www.BuySellSignals.com