Occidental has closed its acquisition of CrownRock, L.P.

“By completing this transaction, Occidental adds assets that we believe make the best portfolio in our company’s history even stronger and more differentiated. We also welcome new team members who will combine with ours to form a high-performing employee base that is focused on safely and efficiently developing low-emission, low-cost energy,” said President and Chief Executive Officer Vicki Hollub.

Transaction Details

The transaction’s total consideration is approximately $12.0 billion. Occidental intends to finance the purchase with the incurrence of $9.1 billion of new debt, the issuance of approximately $1.7 billion of common equity and the assumption of CrownRock’s $1.2 billion of existing debt. The transaction is expected to close in the first quarter of 2024, subject to customary closing conditions and the receipt of regulatory approvals.

Additional Highlights

• 1,700 undeveloped locations, including 1,250 development-ready at sub-$60 WTI breakeven
• 750 locations are sub-$40 WTI breakeven, increasing Occidental’s U.S. Onshore sub-$40 breakeven inventory by 25%
• Greater basin diversification at top end of portfolio advances corporate returns and optionality
• Well-understood and rich subsurface is adjacent to some of the most prolific wells in the basin
• Majority of inventory is located in largely clean and undeveloped sections, providing ample opportunity for Occidental customization and upside
• Substantive surface acreage of nearly 10,000 acres, along with hundreds of miles of gathering and water infrastructure, provides material operational efficiency
• Acquisition expected to advance Occidental’s water recycling capability with assets that include four recycling plants
• Nearly 100% operated position with high average working interest of 93% amplifies Occidental’s capabilities
• Added position enables Occidental to build upon its deep horizon Barnett well performance leadership, in which new well production was 34% better than basin average

KeyFacts Energy: Occidental US country profile   l   KeyFacts Energy: Acquisitions & Mergers news