Occidental Petroleum Corp. agreed on June 10 to sell Permian acreage located in the southern Delaware Basin in West Texas the Houston-based company described as “non-strategic” to privately held Colgate Energy for $508 million. 

The transaction signals progress in meeting the debt reduction goal Occidental set following its acquisition of Anadarko Petroleum in 2019, which caused its debt to balloon. This year, the company is planning to complete between $2 billion and $3 billion in asset sales to reduce its debt.

Meanwhile, the acquisition is Colgate’s second this month so far as the company agreed to acquire privately held Luxe Energy LLC in the Permian Basin as well in an all-stock transaction on June 2. Both acquisitions, according to Co-CEO James Walter, truly puts Colgate in a differentiated position.

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