Occidental Petroleum is exploring a sale of a part of its operations in the Permian Basin that could fetch more than $1 billion for the energy producer, according to people familiar with the matter.
The company's divestment effort is linked to Occidental's broader plan to slash its debt, which stood at $18.5 billion at the end of 2023, the sources said, requesting anonymity as the discussions are confidential.
Related: Occidental to Divest Some Permian Assets after Closing CrownRock Deal
Occidental, which is backed by Warren Buffett's Berkshire Hathaway, is working with a financial adviser on the sale process for the assets in the Barilla Draw region of Texas, which is located within the Delaware portion of the Permian Basin, the sources said, cautioning a deal is not guaranteed.
A spokesperson for Occidental declined comment.
In February, Occidental's long-time CEO Vicki Hollub said the Federal Trade Commission's (FTC) second request for information on the company's $12 billion takeover of CrownRock had pushed back the deal's closing date to the second half of this year, forcing the Houston-based oil producer to postpone planned asset sales worth up to $6 billion.
Occidental plans to take on $9.1 billion of new debt to help fund its deal for CrownRock.
However, Occidental has kicked off the sale process for the Barilla Draw assets, as it sees an opportunity to attract strong interest from other Permian oil producers who have completed their recent dealmaking spree, the sources said.
The assets cover approximately 27,500 net acres and produces around 24,400 barrels of oil equivalent per day, the sources added.
Recommended Reading
Berry Corp. Ups Hedge Book During Oil Market Volatility
2025-04-23 - California and Uinta producer Berry Corp. announced steps to strengthen its hedge book and liquidity during a period of market volatility.
Terra Team Launches New E&P with $300MM in Kayne Anderson Backing
2025-06-03 - Team members from Terra Energy Partners, a major Piceance Basin gas producer, are launching Terra II with backing from Kayne Anderson.
Energy Executives Plan EQV Group’s Second Blank-Check IPO
2025-06-13 - The $350 million of funds raised will go into escrow alongside the $350 million raised from EQV Group’s first SPAC IPO as the 10-month-old prospective M&A buyer has not yet done a deal.
PE Firm Andros Capital Partners Closes $1 Billion Energy Fund
2025-04-07 - Andros Capital Partners maintains a flexible investment mandate, allowing the firm to invest opportunistically across the capital structure in both public and private equity or debt securities.
Phillips 66 Urges Shareholders to Vote Against Elliott at Annual Meeting
2025-04-08 - Phillips 66’s board of directors is again pushing against one of its largest investors—Elliott Investment Management—with a letter to shareholders detailing how to vote against the investment company at its upcoming annual meeting.
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.