Tuesday, December 12, 2023



For US$12 billion, Occidental Petroleum will purchase CrownRock.

US oil major Occidental Petroleum said in a statement today that it has reached an agreement to pay US$12 billion to acquire competitor US energy giant CrownRock.

The acquisition is the most recent in a string of deals that energy companies have undertaken recently as the industry consolidates. It will boost Occidental's position in the Permian Basin, the largest oil producing region in the United States.

Texas is already the top oil producing state in the US, and the acquisition of privately held CrownRock's holdings will increase Occidental's footprint in the region, which includes the Midland Basin of the Permian.

Vicki Hollub, president and CEO of Occidental, described the agreement as a "strategic fit."

In the release, Hollub stated, "We believe the acquisition of CrownRock's assets adds to the strongest and most differentiated portfolio that Occidental has ever had."

For US$12 billion, Occidental Petroleum will purchase CrownRock.

It is anticipated that the deal, which needs regulatory approvals, will close in 2024's first quarter.

Occidental announced that it would finance the acquisition with US$9.1 billion in new debt, US$1.7 billion in common equity, and US$1.2 billion in debt already held by CrownRock.

Large-scale transactions have been more common in the US oil business in recent months, helped by a solid cash position after significant earnings in 2022.

In a similar attempt to bolster its position in the highly sought-after Permian Basin, ExxonMobil announced in October that it was purchasing competitor Pioneer Natural Resources for approximately US$60 billion.

A few days later, US$53 billion was disclosed as the price at which energy behemoth Chevron would buy oil and gas firm Hess.

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For US$12 billion, Occidental Petroleum will purchase CrownRock.