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 % |
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OXY | OCCIDENTAL PETROLEUM CORP. | 55.77 | +0.99 | +1.81% |
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 % |
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XOM | EXXON MOBIL CORP. | 124.81 | +2.24 | +1.82% |
PXD | NO DATA AVAILABLE | - | - | - |
CVX | CHEVRON CORP. | 150.74 | -0.51 | -0.34% |
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Occidental shares dipped slightly in premarket trading on the news.
Reuters contributed to this report.