Occidental Buys Crownrock: $12B Permian Deal
- Houston-based Occidental Petroleum (Oxy) is set to acquire CrownRock L.P., a Permian Basin oil and gas producer, for $12 billion in cash and stock.
- The acquisition of CrownRock, a joint venture between CrownQuest Operating LLC and Lime Rock Partners, will be financed through $9.1 billion in new debt, $1.7 billion in common...
- Occidental expects the acquisition to immediately boost free cash flow, projecting an increase of $1 billion in the first year, assuming West Texas Intermediate (WTI) crude prices of...
Occidental Petroleum just made a major move! They will acquire CrownRock in a $12 billion deal, significantly expanding its position in the prolific Permian Basin. This strategic acquisition is poised to inject an immediate boost to the company’s free cash flow, possibly adding a staggering $1 billion in the first year alone, assuming $70/barrel WTI crude prices.Boosting its Permian Basin holdings will help shareholders. This latest deal underscores the consolidation trend within the U.S. oil sector, positioning Occidental for enhanced growth. As reported by News Directory 3, the purchase of CrownRock also unlocks over 1,700 undeveloped locations. How will this impact the landscape? Discover what’s next…
Occidental Petroleum to Acquire CrownRock in $12 Billion Deal
Updated May 28, 2025
Houston-based Occidental Petroleum (Oxy) is set to acquire CrownRock L.P., a Permian Basin oil and gas producer, for $12 billion in cash and stock. The deal marks a important expansion of Occidental’s footprint in the prolific Permian Basin and is the latest in a series of major acquisitions reshaping the U.S. oil industry.
The acquisition of CrownRock, a joint venture between CrownQuest Operating LLC and Lime Rock Partners, will be financed through $9.1 billion in new debt, $1.7 billion in common equity, and the assumption of $1.2 billion of CrownRock’s existing debt. Occidental anticipates the transaction to close in the first quarter of 2024.
Occidental expects the acquisition to immediately boost free cash flow, projecting an increase of $1 billion in the first year, assuming West Texas Intermediate (WTI) crude prices of $70 per barrel. The deal will add approximately 170,000 barrels of oil equivalent per day (BOE/d) to Occidental’s production in 2024, along with access to over 1,700 undeveloped locations in the Permian Basin.
The purchase follows exxonmobil’s $60 billion agreement to buy Pioneer Natural Resources and Chevron’s $53 billion bid for Hess, highlighting a trend of consolidation within the U.S. oil sector. The CrownRock acquisition provides Occidental with over 94,000 net acres of premium assets and infrastructure in the Midland Basin, offering substantial advancement opportunities.
The deal underscores the strategic importance of the Permian Basin for occidental Petroleum and its commitment to driving shareholder value through strategic acquisitions and increased production of oil and gas.
“We found CrownRock to be a strategic fit, giving us the opportunity to build scale in the Midland Basin and positioning us to drive value creation for our shareholders with immediate free cash flow accretion,” said Occidental president and CEO Vicki Hollub.
In addition to the acquisition, Occidental announced plans to increase its quarterly dividend by $0.04 per share, bringing it to $0.22 in February 2024. This move reflects the company’s confidence in its future cash flow generation following the CrownRock acquisition.
What’s next
With the acquisition of CrownRock, Occidental is poised to strengthen its position as a leading oil and gas producer in the Permian Basin. The company will focus on integrating CrownRock’s assets and leveraging its increased scale to drive further efficiencies and growth in the region. Investors will be watching to see how Occidental manages its increased debt load and executes its integration plans.