US oil company Occidental has announced the completion of its acquisition of CrownRock, a move set to bolster its Permian Basin operations.
The cash and stock deal valued at $12bn was first announced in December 2023 and includes the assumption of CrownRock's debt.
It adds approximately 170,000boepd of production in 2024 and roughly 1,700 undeveloped locations to Occidental's portfolio.
This represents a 33% increase in the company's Permian unconventional sub-$40 breakeven inventory.
CrownRock's assets, more than 94,000 net acres of premium stacked pay assets, are strategically located alongside Occidental's existing Midland Basin operations.
With this acquisition, Occidental aims to diversify its basin portfolio and improve corporate returns.
Much of the inventory is situated in largely undeveloped areas, offering Occidental the opportunity for further customisation and potential upside.
Occidental president and CEO Vicki Hollub said: “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.”
The company is also focused on reducing its debt, which exceeded $18bn at the end of the first quarter.
As part of its debt reduction strategy, Occidental previously outlined a plan to divest between $4.5bn and $6bn in assets within 18 months of completing the CrownRock acquisition.
In line with this plan, earlier this week, Occidental agreed to sell certain Delaware Basin assets in Texas and New Mexico to Permian Resources for approximately $818m.
The assets being divested to Permian Resources include around 27,500 net acres in Texas and 2,000 net acres in New Mexico.
The sale also includes more than 100 miles of operated oil and gas gathering systems, over 10,000 surface acres and various water infrastructure components.
