close
close

Occidental hopes to close its acquisition of CrownRock by August

Occidental Petroleum hopes to complete its planned $12 billion acquisition of Permian oil and gas producer CrownRock by its next quarterly earnings report in August 2024, Oxy CEO Vicki Hollub he said during a Q1 call with analysts.

Late last year, Oxy said it would buy CrownRock for cash and stock in a deal worth about $12 billion, including debt, joining a wave of mergers and acquisitions in the U.S. oil industry.


The acquisition will strengthen Occidental’s premier Permian portfolio by adding approximately 170,000 barrels of oil equivalent per day (boed) of high-margin, low-alloy unconventional production in 2024, as well as approximately 1,700 undeveloped locations.

At the time the merger was announced in early December, Oxy and CrownRock expected to complete the transaction in the first quarter of 2024, subject to customary closing conditions and regulatory approvals.


However, in February 2024, Occidental said it expected to postpone the closing of the transaction until the second half of 2024 because the Federal Trade Commission (FTC) had requested additional information during its review of the proposed transaction.




Responding to an analyst’s question regarding the first quarter earnings report, Oxy’s Hollub said, regarding the closing date of the transaction:

“We will certainly communicate this at our next quarterly meeting. I think we’ll be done by then, maybe not, but it will definitely be in the third quarter.”

Sunil Mathew, senior vice president and chief financial officer, added:

“Our teams are working constructively with the FTC and we expect the transaction to close in the third quarter of this year.”

The FTC has reviewed a number of proposed acquisitions in the U.S. oil and gas sector amid a wave of mergers and acquisitions in the industry.


Last week, ExxonMobil completed its acquisition of Pioneer Natural Resources, marking a monumental milestone in the energy sector. The deal, valued at $60 billion, is one of the largest oil and gas acquisitions in recent memory, changing the landscape of the industry.

Author: Tsvetana Paraskova for Oilprice.com

More top reads from Oilprice.com: