Exxon Mobil issues floating rate notes due 2075

Published 01/04/2025, 21:16
© Reuters.

Exxon Mobil Corporation (NYSE:XOM), a leading global oil and gas company with a market capitalization of $516 billion and an impressive track record of maintaining dividend payments for 55 consecutive years, has entered into an underwriting agreement for the issuance and sale of $192.8 million in Floating Rate Notes due 2075, according to a recent SEC filing. InvestingPro analysis shows the company operates with a moderate debt level and maintains strong cash flows sufficient to cover interest payments. The agreement, dated March 28, 2025, was made with a consortium of underwriters led by Morgan Stanley (NYSE:MS) & Co. LLC, UBS Securities LLC, and others.

The newly issued notes are set to mature in 2075 and were offered under the company’s existing Registration Statement filed on March 10, 2023. The offering’s details are outlined in an officer’s certificate dated April 1, 2025, which establishes the terms and forms of the Notes. With a current debt-to-equity ratio of 0.18 and a healthy current ratio of 1.31, the company demonstrates strong financial discipline in its debt management.

The legal framework for the issuance is based on an indenture dated March 20, 2014, between Exxon Mobil and Deutsche Bank (ETR:DBKGn) Trust Company Americas as trustee, and is supplemented by a first supplemental indenture from June 26, 2020, and the recent officer’s certificate.

The transaction’s legal opinions, provided by Davis Polk & Wardwell LLP and Timothy Kim, Esq., Counsel—Corporate of Exxon Mobil Corporation, are also filed with the SEC and incorporated by reference into the Registration Statement.

This financial move by Exxon Mobil follows a series of similar strategic efforts by major corporations to secure long-term financing. The notes are expected to be listed on the New York Stock Exchange under the symbols representing the company’s various debt instruments. For detailed analysis of XOM’s financial health and future prospects, including 10+ additional exclusive insights, investors can access the comprehensive Pro Research Report available on InvestingPro.

Investors and market observers can access the full details of the underwriting agreement and the officer’s certificate in the exhibits of the current report on Form 8-K filed by Exxon Mobil. The information is based on a press release statement.

In other recent news, ExxonMobil has reported fourth-quarter 2024 earnings that exceeded expectations, with an 8% adjusted earnings per share beat compared to Wall Street predictions. UBS adjusted its price target for ExxonMobil, lowering it to $146 while maintaining a Buy rating, indicating confidence in the company’s strategic focus on advantaged assets in its Upstream Segment. Mizuho (NYSE:MFG) Securities also revised its price target for ExxonMobil, reducing it to $131 and maintaining a Neutral rating, citing a weaker outlook for the Chemicals segment.

Additionally, ExxonMobil has announced plans to cut approximately 250 jobs in the UK as part of its strategy to consolidate operations, which includes closing its Leatherhead office by 2026. Despite this, the company plans to expand its London trading hub, emphasizing the importance of the UK to its operations. In broader industry news, U.S. oil producers, including ExxonMobil, are set to meet with President Donald Trump to discuss tariffs and trade, highlighting the sector’s role in economic growth and national security. These developments come amid a recovery in crude oil prices, which has positively impacted energy sector stocks, including ExxonMobil.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.