Since issuing $2.7 billion in debt to finance the acquisition in 2023, ConocoPhillips’ bonds have underperformed relative to the broader market. The company’s long-dated bonds are nearly trading back at issuance spread, suggesting that investors who financed the acquisition may have suffered poor performance while waiting for reporting confirmation.
With more exclusion-driven sell-offs possible in the coming months, ConocoPhillips’ bondholders may face further underperformance. This underscores the financial consequences of investing in high-carbon assets at a time when ESG policies are increasingly shaping capital flows.
