Published On: September 22nd, 2021Categories: Trade Ideas
High Yield rated Energy companies took advantage of the strength of the oil market to enhance liquidity and improve their balance sheets, especially E&P issuers. Following a difficult year in 2020 owing to oil prices and Anadarko’s acquisition, Occidental Petroleum (OXY) has released above consensus results. While non-core asset sales are proceeding and debt reduction is ongoing, things are looking up for the company with their balance sheet gradually healing. OXY could reach an investment grade rating in the two years’ time, assuming oil prices hold up. The company’s ESG angle via its Low Carbon Venture is an area of differentiation moving forward.