Occidental to Acquire CrownRock Permian Basin Assets for $12 Billion

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Researched by Industrial Info Resources (Sugar Land, Texas)--In a move that would substantially increase its Permian Basin assets, Occidental Petroleum Corporation (NYSE:OXY) (Houston, Texas) has reached an agreement to acquire Midland, Texas-based CrownRock L.P. for $12 billion, the companies said Monday.

Through a cash and stock transition that is expected to close in first-quarter 2024, Occidental said it will acquire 94,000 net acres of premium stacked pay assets and supporting infrastructure from CrownQuest Operating LLC (Midland) and Lime Rock Partners (Houston). The deal includes surface acreage of nearly 10,000 acres and will increase Occidental's Permian Basin production by about 170,000 barrels of oil equivalent per day (BOE/d).

Occidental's Permian Basin production currently amounts to more than 750,000 BOE/d, said Occidental's Richard Jackson, president, U.S. Onshore Resources and Carbon Management, Operations, during a conference call on Monday.

In a press release, Occidental Chief Executive Officer Vicki Hollub said, "We believe the acquisition of CrownRock's assets adds to the strongest and most differentiated portfolio that Occidental has ever had."

Occidental also will assume CrownRock's debt as part of the deal.

Occidental's planned acquisition follows Exxon Mobil Corporation's (NYSE:XOM) (Irving, Texas) $59.5 billion deal to acquire Pioneer Natural Resources (NYSE:PXD) (Irving, Texas), and Chevron Corporation's (NYSE:CVX) agreement in October to acquire all of the outstanding shares of Hess Corporation (NYSE:HES) in an all-stock transaction valued at $53 billion. For more information, see October 12, 2023, article - It's Official: ExxonMobil to Acquire Pioneer Natural Resources for $59.5 Billion and October 24, 2023, article - Chevron to Buy Hess, Add Bakken Shale to Oil & Gas Holdings.

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