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Occidental Petroleum (OXY) to acquire CrownRock for $12 billion

December 11, 2023 7:07 AM EST

Occidental (NYSE: OXY), the energy giant, has announced its acquisition of CrownRock LP, an oil and gas producer based in Midland.

The deal, valued at approximately $12 billion, encompasses both cash and stock, and involves assuming CrownRock's existing debt.

“We believe the acquisition of CrownRock’s assets adds to the strongest and most differentiated portfolio that Occidental has ever had. We found CrownRock to be a strategic fit, giving us the opportunity to build scale in the Midland Basin and positioning us to drive value creation for our shareholders with immediate free cash flow accretion,” said Occidental President and Chief Executive Officer Vicki Hollub.

“We are excited about combining CrownRock’s high-performing team into our organization and expect to continue Occidental’s exceptional operational and financial results for years to come.”

CrownRock LP is a joint venture between CrownQuest Operating and Lime Rock Partners.

The acquisition is strategically aimed at enhancing Occidental's financial position, with expectations of delivering increased free cash flow on a diluted share basis.

The company anticipates generating $1 billion in the first year following the acquisition, based on a reference price of $70 per barrel for WTI crude oil.

Earlier today, Morgan Stanley analysts upgraded OXY's stock rating to Overweight.

OXY shares are down 0.3% in pre-market Monday.

By Senad Karaahmetovic



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