EOG Resources Offers $1 Billion 30-Year Bonds

EOG Resources Inc. has priced $1 billion senior notes due 2054 with a 5.65 percent semi-annual interest as part of a plan to refinance approaching maturities.

Expected 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 Global Markets Inc., PNC Capital Markets LLC and Scotia Capital (USA) Inc. Besides these joint book-running managers, EOG Resources has also roped in CIBC World Markets Corp., Truist Securities Inc., U.S. Bancorp Investments Inc. and M&T Securities Inc. as co-managers, the United States oil and gas exploration and production company said in a regulatory disclosure.

EOG Resources plans to use the proceeds for “general corporate purposes”, including the repayment of the $500 million principal amount of 3.15 percent senior notes due 2025, and capital expenditures, according to an earlier prospectus filing.

Coupon payments will start June 2025. “The notes will be our senior, unsecured obligations and will rank equally in right of payment with all of our other unsecured and unsubordinated indebtedness from time to time outstanding”, EOG Resources told the Securities and Exchange Commission. “The notes will be effectively subordinated to any of our secured indebtedness, to the extent of the value of the assets securing such indebtedness, unless the notes become equally and ratably secured by those assets. The notes will also be structurally subordinated to the indebtedness and all other obligations of our subsidiaries”.

Each note amounts to at least $2,000. Notes greater than the minimum will be in integral multiples of $1,000.

Houston, Texas-based EOG Resources had $4.41 billion in current liabilities as of the end of the third quarter, including $34 million in current portion of long-term debt. “The company anticipates refinancing debt maturities due in the next 12-18 months while maintaining a cash balance similar to the past several quarters”, it said in its quarterly report.

Meanwhile EOG Resources’ current assets stood at $10.17 billion as of September, including $6.12 billion in cash and cash equivalents.

EOG Resources reported $1.67 billion in net profit and $1.64 billion in adjusted net profit for the July–September period, both down compared to the same quarter last year as lower realized natural gas prices in the U.S. offset an increase in oil price realizations and production. It produced a total of 99 million barrels of oil equivalent, or 1.08 million barrels of oil equivalent a day, with oil and gas output both increasing year-on-year in EOG Resources’ two countries of production, the U.S. and Trinidad.

Adjusted earnings per share of $2.89 beat the Zacks Consensus Estimate of $2.73, an average of projections by brokerage analysts.

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