Occidental Petroleum to buy CrownRock in $12B deal
Occidental-CrownRock deal expected to close in first quarter of 2024
Oil's turbulent ride is driven by disruptive trading systems: Tracy Shuchart
Hilltower Resource Advisors CEO Tracy Shuchart explains what's behind the plunge in oil prices and discusses the implications of Venezuela threatening to annex part of oil-rich Guyana on 'Making Money.'
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. | 67.78 | -0.10 | -0.15% |
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. | 117.86 | -3.50 | -2.88% |
| PXD | PIONEER NATURAL RESOURCES CO. | 268.83 | -6.20 | -2.25% |
| CVX | CHEVRON CORP. | 165.89 | +0.62 | +0.38% |
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Occidental shares dipped slightly in premarket trading on the news.
Reuters contributed to this report.