ExxonMobil Taps the Debt Market Again
With oil prices continuing to hover at extremely low levels, ExxonMobil (NYSE: XOM) has taken more action to shore up its finances.
The energy giant on Monday raised $9.5 billion by selling five new bond issues with maturities ranging from five to 31 years, according to a Reuters report. The article noted that ExxonMobil had originally planned to raise $9 billion through the offering; the higher capital raise indicates that demand was strong for the bond issue.
Last week, ExxonMobil announced it would cut its 2020 capital spending by 30% and would reduce its operating expenses by 15%. All of these moves were made in response to conditions of heavy oversupply in the oil market -- a situation caused both by the steep plunge in demand due to the COVID-19 pandemic and by producers pumping a glut of crude.
Source Fool.com
