Occidental Petroleum

Definition

Occidental Petroleum is a large international oil and gas exploration and production company headquartered in Houston, Texas. It is also involved in chemical manufacturing and other energy-related activities.

5 Must Know Facts For Your Next Test

1. Occidental Petroleum's credit rating can affect the interest rates it pays on its bonds.
2. The company's financial performance is influenced by fluctuations in global oil prices, impacting its bond valuation.
3. Occidental Petroleum has issued both secured and unsecured bonds to finance its operations.
4. Default risk for Occidental Petroleum bonds can be assessed through metrics like debt-to-equity ratio and interest coverage ratio.
5. Interest rate changes can have significant effects on the market value of Occidental Petroleum's long-term debt.

Review Questions

• How does Occidental Petroleum's credit rating influence its bond interest rates?
• What factors impact the default risk of Occidental Petroleum bonds?
• In what ways do global oil price fluctuations affect Occidental Petroleum's bond valuation?

Related terms

Bond Yield: The return an investor realizes on a bond, often influenced by the issuing company's creditworthiness

Credit Rating: An assessment of a borrower's ability to repay debt, crucial for determining bond interest rates

Interest Rate Risk: The potential for investment losses due to changes in interest rates affecting bond prices