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Occidental Petroleum (OXY) falls on report of deal to acquire CrownRock

November 30, 2023 11:05 AM EST

Occidental Petroleum (NYSE: OXY) is in talks to buy Permian operator CrownRock for well over $10 billion, including debt, the Wall Street Journal reported overnight citing people familiar with the matter.

A deal between the two could be announced over the near term as long as talks don't fall apart or another suitor doesn't outbid Occidental.

Shares of Occidental traded down 1.5% mid-day amid the report.

CrownRock is one of the last remaining privately held companies in the Permian and produces about 150,000 barrels of oil equivalent a day.

Warren Buffett's Berkshire Hathaway owns a 26% stake in Occidental and commented in the past that they wouldn't seek to acquire the entire company.

Earlier in the fall, speculation suggested that oil giant Chevron (NYSE: CVX) was kicking the tires of Occidental, but talks between the two fizzled. In October, Chevron agreed to acquire Hess (NYSE: HES) in a $53 billion all-cash deal. This deal closely followed Exxon Mobil's nearly $60 billion all-stock deal for Pioneer Natural Resources (NYSE: PXD), highlighting the frenzy of deal activity in the sector.

By StreetInsider.com Staff



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