Occidental To Purchase CrownRock - Quick Facts

(RTTNews) - Occidental (OXY) has entered into a purchase agreement to acquire CrownRock L.P., a joint venture of CrownQuest Operating LLC and Lime Rock Partners, in a cash and stock deal valued at approximately $12.0 billion, including the assumption of CrownRock's debt. Occidental plans 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.

Occidental said the purchase increases its Permian unconventional sub-$40 breakeven inventory by 33%. The deal enhances Occidental's premier Permian portfolio with the addition of approximately 170 thousand barrels of oil equivalent per day of high-margin, lower-decline unconventional production in 2024.

Occidental also announced intention to increase the quarterly common stock dividend per share by $0.04 to $0.22, beginning with the February 2024 declaration.