Occidental announced it has agreed to sell certain Delaware Basin assets in Texas and New Mexico to Permian Resources for approximately $818 million and separately completed several dispositions totaling approximately $152 million in 2024.
Sales proceeds from each of these transactions will go toward reducing debt.
Occidental previously announced a $4.5 billion-$6 billion divestiture program to be completed within 18 months of closing the acquisition of CrownRock, L.P. which is expected to occur in August.
“We are pleased with the significant progress to date on our divestiture program, which is aimed at derisking the financing of the CrownRock acquisition and accelerating our shareholder return pathway,” said President and CEO Vicki Hollub.
Occidental is selling Permian Resources approximately 27,500 net acres in the Barilla Draw Field of the Texas Delaware Basin and approximately 2,000 net acres in the New Mexico Delaware Basin, with combined net production for the fourth quarter of 2024 estimated at approximately 15,000 barrels of oil equivalent per day. The Permian Resources transaction is expected to close in the third quarter of 2024, subject to customary closing conditions.
For this divestiture, Occidental’s financial advisor was RBC Capital Markets, LLC and legal advisor was White & Case LLP.
