Occidental Petroleum (Oxy) continues to execute its strategic asset divestiture plan with the sale of its Texas and New Mexico assets to Permian Resources for approximately $818 million. This move is a crucial step in Oxy’s plan to finance its $12 billion acquisition of CrownRock, further consolidating its presence in the Permian Basin. As part of this transition, multiple facility ownership transfers have been documented in the Texas Commission on Environmental Quality (TCEQ) database, with OWL Operating and Sabalo Energy emerging as the new operators of several key assets.

OWL Operating’s Acquisitions

OWL Operating, a prominent midstream and water infrastructure company, has taken ownership of several facilities from Oxy. The transferred facilities include:

Weber 3514 Battery (Howard County, TX)
Weber TB (Howard County, TX)
Tom A 1 (Glasscock County, TX)
McPhaul Facility (Howard County, TX)
McKenzie Facility (Howard County, TX)

These facilities, previously owned by Oxy USA Inc., were officially transferred to OWL Operating under TCEQ’s Air New Source Review (NSR) change of ownership process. Located in Region 07 – Midland, these sites play a crucial role in hydrocarbon extraction and water management within the Permian Basin.

Sabalo Energy’s Acquisitions

Sabalo Energy, a leading Permian Basin operator, has also acquired assets from Oxy. One notable facility in this transaction is:

St. Andrews Gathering Facility (Andrews County, TX)

This facility, registered under TCEQ Account ID a3G1W000000QWC4, has undergone an ownership change and is now operated by Sabalo II Operating, LLC. The site is integral to the region’s oil and gas production infrastructure, ensuring efficient gathering and transportation of hydrocarbons.

Strategic Implications of Oxy’s Divestiture

Oxy’s decision to divest these assets aligns with its broader financial strategy, as the company seeks to optimize its portfolio and secure funding for its high-profile CrownRock acquisition. The deal reflects a growing trend in the oil and gas industry, where major operators streamline their assets while mid-sized players like OWL Operating and Sabalo Energy capitalize on growth opportunities in the Permian Basin.

For OWL Operating, these acquisitions strengthen its footprint in water management and midstream infrastructure, essential for optimizing production efficiency and sustainability. Meanwhile, Sabalo Energy’s expansion positions it as a key upstream player in the Permian, increasing its reserves and operational capacity.

As these transactions progress, it will be interesting to see how OWL Operating and Sabalo Energy leverage their newly acquired assets to enhance production efficiency and drive value in the Permian Basin.

Stay tuned for more updates on M&A activity in the oil and gas sector!