The waiting period for Occidental’s $12 billion acquisition of CrownRock LP under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 has expired. (Source: Shutterstock.com)
Occidental Petroleum expects to close its acquisition of Permian producer CrownRock LP next month after clearing antitrust hurdles.
The waiting period for the company’s $12 billion acquisition of CrownRock LP under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 has expired, Occidental announced after markets closed July 18.
"We look forward to closing our transaction with CrownRock in August and welcoming their high-performing team into our organization," Occidental President and CEO Vicki Hollub said. “We are progressing with the divestiture program that we believe will ultimately high-grade our portfolio and optimize returns for our shareholders.”
Occidental first announced the acquisition in December 2023. On Jan. 19, both companies received a second request from the U.S. Federal Trade Commission (FTC) seeking additional information regarding the proposed combination.
The FTC has taken an active role in several high-profile energy transactions over the past year, including Exxon Mobil’s $60 billion acquisition of Pioneer Natural Resources, Diamondback Energy’s $26 billion acquisition of private Permian producer Endeavor Energy Resources LP, and ConocoPhillips’ $17.1 billion acquisition of Marathon Oil.
Exxon closed the Pioneer deal in early May; the deals by Diamondback and ConocoPhillips are still pending.
The CrownRock acquisition will deliver Occidental 1,700 undeveloped locations across the core of the Permian’s Midland Basin. Most of those undrilled locations are expected to breakeven with oil prices ranging between $40/bbl and $60/bbl.
Occidental expects to add approximately 170,000 boe/d through the CrownRock acquisition.
RELATED
Which Occidental Assets Will Hit Chopping Block After $12B CrownRock Deal?
Recommended Reading
As Permian Targets Grow Scarce, 3Q M&A Drops to $12B—Enverus
2024-10-16 - Upstream M&A activity fell sharply in the third quarter as public consolidation slowed and Permian Basin targets dwindled, according to Enverus Intelligence Research.
Exxon Seeks Buyers for Portion of Assets in North Dakota's Bakken Shale
2024-10-15 - The planned sale could fetch upwards of $500 million, two sources told Reuters. They said it was part of Exxon's efforts to focus on assets with the highest growth potential after a $60 billion takeover of rival Pioneer Natural Resources in May.
After M&A, Some ‘Stingy’ E&Ps Plan to Hold Operated Shale Inventory
2024-10-10 - After a whirlwind run of upstream consolidation, experts anticipated a wave of portfolio rationalization and divestitures. But with high-quality drilling locations already scarce, E&Ps may cling to operated inventory.
Exxon to Sell Older Permian Assets to Hilcorp in $1B Deal, Sources Say
2024-11-13 - Reuters reported in June that Exxon was auctioning the assets to focus on higher growth shale drilling properties, following the completion of its $60 billion takeover of Pioneer Natural Resources in May.
Diamondback’s Viper Buys $1.1B in Permian Mineral, Royalty Interests
2024-09-11 - Diamondback subsidiary Viper Energy is spending $1.1 billion on a series of Permian Basin mineral and royalty acquisitions from Tumbleweed Royalty, which was formed by the executives behind Double Eagle Energy.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.