Occidental Petroleum to buy CrownRock in $12B deal

Occidental-CrownRock deal expected to close in first quarter of 2024

Occidental Petroleum announced on Monday it will acquire energy producer CrownRock in a deal valued at $12 billion, including debt.

Occidental said it will finance the purchase with $9.1 billion of new debt, the issuance of about $1.7 billion of common equity and the assumption of CrownRock’s $1.2 billion of existing debt. The deal is expected to close in the first quarter of 2024.

The cash-and-stock deal will boost Houston-based Occidental’s cash flow and will give it more than 94,000 net acres in the Midland Basin – part of the Permian – in Texas.

BIDEN ADMINISTRATION PLANS TO BUY 2.7M OIL BARRELS TO REFILL EMERGENCY STOCKPILE

Ticker Security Last Change Change %
OXY OCCIDENTAL PETROLEUM CORP. 66.64 +0.60 +0.91%

The CrownRock deal would be Occidental's first major acquisition since its widely criticized and debt-laden purchase of rival Anadarko Petroleum in 2019. Occidental had about $18.60 billion in debt as of Sept. 30, according to a company filing.

Investors are pressing oil and gas producers to expand their inventories following Exxon Mobil's $60 billion deal for Pioneer Natural Resources and Chevron's $53 billion agreement for Hess in October.

FTC INVESTIGATES EXXON’S $60 BILLION DEAL FOR PIONEER

Ticker Security Last Change Change %
XOM EXXON MOBIL CORP. 119.88 +1.42 +1.20%
PXD PIONEER NATURAL RESOURCES CO. 270.46 +2.34 +0.87%
CVX CHEVRON CORP. 160.04 +2.55 +1.62%

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Occidental shares dipped slightly in premarket trading on the news.

Reuters contributed to this report.