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Occidental Buys CrownRock For $12 Billion In Stock And Cash



Occidental Buys CrownRock For $12 Billion In Stock And Cash

(CTN News) – Occidental has announced its acquisition of CrownRock, an oil and gas company, in a cash-and-stock deal worth approximately $12 billion.

Occidental’s President and CEO, Vicki Hollub, stated that the acquisition aligns with their strategic goals and provides an opportunity to expand their presence in the Midland Basin, which is known for its extensive oil and gas reserves in western Texas.

In October, the United States achieved a record-high domestic oil production. The Energy Information Administration of the U.S. Department of Energy reported that oil production reached 13.2 million barrels per day in the first week of October, surpassing the previous record set in 2020 by 100,000 barrels.

This acquisition by Occidental reflects the ongoing trend of consolidation within the energy sector. Many companies are investing significantly to strengthen their positions in various oil-rich regions, including the Permian Basin, a vast oilfield spanning Texas and New Mexico.

According to the U.S. Energy Information Administration, drilling activities in the Permian accounted for 18% of the country’s natural gas production last year.

In October, Exxon Mobil announced its acquisition of Pioneer Natural Resources in a deal worth $59.5 billion, which would establish a massive fracking operator in West Texas.

This transaction significantly expands Exxon’s presence in the Permian Basin.

Around the same time, Chevron revealed its plan to acquire Hess Corp. for $53 billion. Chevron stated that this acquisition would provide them with a significant oil field in Guyana and shale properties in the Bakken Formation in North Dakota.

However, the Occidental Federal Trade Commission (FTC) recently declared that it is investigating Chevron’s acquisition of Hess. The FTC has requested additional information and documentary materials related to the proposed deal. This announcement follows closely after the FTC decides to look into Exxon’s proposed acquisition of Pioneer.

These inquiries were prompted by Senate Majority Leader Chuck Schumer and 22 other Democratic senators, who urged the FTC to investigate both deals.

Schumer expressed concerns that the Chevron-Hess merger would result in higher fuel prices for families, despite the continuous rise in profits for Big Oil companies.

It is important to note that the total value of the Occidental and CrownRock transactions includes the assumption of debt. CrownRock LP is a privately held joint venture between CrownQuest Operating LLC and Lime Rock Partners.


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