Occidental Petroleum to Acquire CrownRock in $12 Billion Deal

Deal marks further consolidation in US oil industry; Occidental gains significant acreage in Permian Basin

Occidental Petroleum, a major US oil company, has agreed to acquire CrownRock, a Texas shale driller, in a deal worth $12 billion. The transaction is set to be financed with $9.1 billion of new debt and the issuance of approximately $1.7 billion of new common shares.
The acquisition will give Occidental nearly 100,000 acres of prime oil-producing land in the Permian Basin, the most productive oil region in the US. CrownRock is one of the last major private producers in the Permian.
The deal is part of a larger trend of consolidation in the US oil industry, with other major acquisitions this year including ExxonMobil's $60 billion deal for Pioneer Natural Resources and Chevron's $53 billion acquisition of Hess.
CrownRock was founded by Texan billionaire Tim Dunn, who is known for his significant contributions to the state's far-right political movement. Dunn's influence in Texas politics is expected to continue following the sale of his company.
Occidental also announced plans to raise its quarterly dividend from 18 cents to 22 cents per share starting in February 2024. The deal is expected to close in the first quarter of 2024.