Occidental Eyes Major Permian Basin Expansion With Potential $10B CrownRock Acquisition: Report
Portfolio Pulse from Nabaparna Bhattacharya
Occidental Petroleum Corporation (NYSE:OXY) is in talks to acquire CrownRock, a major energy producer in the Permian Basin, for over $10 billion. CrownRock owns over 80,000 net acres in Texas' Midland Basin. The deal could expand Occidental's presence in the top oil-producing region in the U.S. Occidental's last major purchase was Anadarko in 2019 for $38 billion, which increased its debt and attracted activist investor Carl Icahn's attention. OXY shares rose 0.66% to $60.73 in premarket trading.
November 30, 2023 | 1:24 pm
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Occidental Petroleum is negotiating the acquisition of CrownRock for over $10 billion, aiming to expand its Permian Basin operations. The company's shares saw a slight increase in premarket trading.
The potential acquisition of CrownRock by Occidental Petroleum is significant as it would enhance OXY's position in the Permian Basin, a key oil-producing region. The news of the acquisition talks has already had a positive impact on OXY's stock price in premarket trading, indicating investor optimism. However, the final impact will depend on the deal's terms, financing, and market perception of the acquisition's strategic value.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 100