HOUSTON, July 29, 2024 (GLOBE NEWSWIRE) — Occidental (NYSE: OXY) announced today its agreement to sell certain assets in the Delaware Basin to Permian Resources (NYSE: PR) for approximately $818 million. Additionally, the company has completed several other dispositions totaling $152 million in 2024. The proceeds from these transactions will be used to reduce debt, aligning with Occidental’s $4.5 billion-$6 billion divestiture program aimed at derisking the financing of the CrownRock, L.P. acquisition and accelerating the shareholder return pathway.
This recent announcement from Occidental highlights a strategic divestiture aimed at reducing debt and funding the acquisition of CrownRock, L.P. Key points from the announcement include:
- Asset Sale: Occidental is selling specific assets in the Delaware Basin to Permian Resources for approximately $818 million.
- Additional Dispositions: Separately, Occidental has completed other dispositions totaling about $152 million in 2024.
- Use of Proceeds: The sales proceeds from these transactions will be directed towards debt reduction.
- Divestiture Program: This sale is part of a larger $4.5 billion-$6 billion divestiture program that Occidental aims to complete within 18 months following the closing of the CrownRock acquisition, expected in August.
- Assets Details: The assets sold to Permian Resources include approximately 27,500 net acres in Texas and 2,000 net acres in New Mexico, with an estimated production of 15,000 barrels of oil equivalent per day for Q4 2024.
- Transaction Timeline: The transaction with Permian Resources is expected to close in Q3 2024, subject to customary closing conditions.
- Advisors: RBC Capital Markets, LLC served as the financial advisor, and White & Case LLP was the legal advisor for Occidental in this divestiture.
Occidental’s strategic divestitures mark a significant milestone in its efforts to derisk the CrownRock acquisition financing and enhance shareholder value. With the expected closing of the Permian Resources transaction in the third quarter of 2024, Occidental continues to demonstrate its commitment to financial discipline and operational excellence.
