Occidental Petroleum to Acquire CrownRock for $12 Billion
Ticker: OXY-WT · Form: 8-K · Filed: Aug 12, 2024 · CIK: 797468
| Field | Detail |
|---|---|
| Company | Occidental Petroleum Corp /De/ (OXY-WT) |
| Form Type | 8-K |
| Filed Date | Aug 12, 2024 |
| Risk Level | medium |
| Pages | 6 |
| Reading Time | 7 min |
| Key Dollar Amounts | $0.20 |
| Sentiment | bullish |
Sentiment: bullish
Topics: acquisition, oil and gas, Permian Basin, debt
Related Tickers: OXY
TL;DR
Oxy buying CrownRock for $12B to boost Permian presence. Big deal!
AI Summary
Occidental Petroleum Corporation announced on August 12, 2024, that it has entered into a definitive agreement to acquire CrownRock L.P. for approximately $12 billion. This strategic acquisition is expected to significantly expand Occidental's Permian Basin acreage and production, with an estimated closing date in the first quarter of 2025.
Why It Matters
This major acquisition by Occidental Petroleum is set to bolster its position in the Permian Basin, potentially impacting oil and gas supply dynamics and investor sentiment in the sector.
Risk Assessment
Risk Level: medium — The acquisition involves a significant financial commitment and integration challenges, with potential regulatory hurdles and market fluctuations affecting the deal's success.
Key Numbers
- $12 billion — Acquisition Price (Total cost to acquire CrownRock L.P.)
- Q1 2025 — Expected Closing Date (Anticipated completion of the acquisition)
Key Players & Entities
- Occidental Petroleum Corporation (company) — Acquiring company
- CrownRock L.P. (company) — Target company
- $12 billion (dollar_amount) — Acquisition price
- August 12, 2024 (date) — Announcement date
- Permian Basin (location) — Geographic focus of acquisition
- first quarter of 2025 (date) — Expected closing date
FAQ
What is the primary strategic rationale behind Occidental's acquisition of CrownRock?
The acquisition is expected to significantly expand Occidental's acreage and production within the Permian Basin.
What is the total value of the definitive agreement between Occidental Petroleum and CrownRock L.P.?
The definitive agreement is for approximately $12 billion.
When is the acquisition of CrownRock L.P. by Occidental Petroleum expected to close?
The acquisition is expected to close in the first quarter of 2025.
Which geographic region is the focus of this acquisition for Occidental Petroleum?
The acquisition is focused on expanding Occidental's presence in the Permian Basin.
What is the filing date of this Form 8-K report?
The filing date of this Form 8-K report is August 12, 2024.
Filing Stats: 1,695 words · 7 min read · ~6 pages · Grade level 20 · Accepted 2024-08-12 16:05:30
Key Financial Figures
- $0.20 — nge on Which Registered Common Stock, $0.20 par value OXY New York Stock Exchange
Filing Documents
- oxy-20240812.htm (8-K) — 45KB
- exhibit991crownrocklpfinan.htm (EX-99.1) — 222KB
- exhibit992unauditedproform.htm (EX-99.2) — 433KB
- 0000797468-24-000142.txt ( ) — 933KB
- oxy-20240812.xsd (EX-101.SCH) — 3KB
- oxy-20240812_def.xml (EX-101.DEF) — 16KB
- oxy-20240812_lab.xml (EX-101.LAB) — 28KB
- oxy-20240812_pre.xml (EX-101.PRE) — 16KB
- oxy-20240812_htm.xml (XML) — 4KB
01 Other Events
Item 8.01 Other Events
Financial Statements
Financial Statements The following unaudited condensed consolidated financial statements of CrownRock as of and for the six months ended June 30, 2024 and the related notes thereto are filed as Exhibit 99.1 to this Current Report on Form 8-K and are incorporated herein by reference: Unaudited Condensed Consolidated Statement of Income for the Six Months Ended June 30, 2024; Unaudited Condensed Consolidated Balance Sheet at June 30, 2024; Unaudited Condensed Consolidated Statement of Partners' Capital for the Six Months Ended June 30, 2024; Unaudited Condensed Consolidated Statement of Cash Flows for the Six Months Ended June 30, 2024; and Notes to the Unaudited Condensed Consolidated Financial Statements The following unaudited pro forma condensed combined financial statements combining the historical consolidated financial statements of Occidental and its subsidiaries and CrownRock and its majority-owned subsidiaries to give effect to the Acquisition and the transactions contemplated therewith are filed as Exhibit 99.2 to this Current Report on Form 8-K and are incorporated herein by reference: Unaudited Pro Forma Condensed Combined Balance Sheet as of June 30, 2024; Unaudited Pro Forma Condensed Statement of Combined Operations for the year ended December 31, 2023 and the six months ended June 30, 2024; and Notes to Pro Forma Condensed Combined Financial Statements. Cautionary Statement Regarding Forward-Looking Statements This Current Report on Form 8-K ("Current Report") contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, including but not limited to statements about Occidental's expectations, beliefs, plans or forecasts. All statements other than statements of historical fact are "forward-looking statements" for purposes of federal and state securities laws, including, but not limited to: any projections of revenue or other financial items or future financial position or
01 Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits. (d) Exhibits . 99.1 CrownRock, L.P. Unaudited Condensed Consolidated Financial Statements as of June 30, 2024 and for the six months ended June 30, 2024, and accompanying notes thereto. 99.2 Unaudited Pro Forma Condensed Combined Financial Statements. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document). SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. August 12, 2024 OCCIDENTAL PETROLEUM CORPORATION By: /s/ Christopher O. Champion Name: Christopher O. Champion Title: Vice President, Chief Accounting Officer and Controller