Occidental Petroleum to Acquire CrownRock for $12 Billion

TL;DR

OXY buying CrownRock for $12B to boost Permian presence.

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, enhancing its position as a leading energy producer.

Why It Matters

This acquisition is a major move by Occidental to bolster its Permian Basin operations, potentially leading to increased production and market share in a key oil-producing region.

Risk Assessment

Risk Level: medium — The acquisition involves a significant financial commitment and integration challenges, with potential risks related to market volatility and execution.

Key Numbers

• $12.0B — Acquisition Price (Total cost for acquiring CrownRock L.P.)

Key Players & Entities

• Occidental Petroleum Corporation (company) — Registrant
• CrownRock L.P. (company) — Acquisition Target
• $12 billion (dollar_amount) — Acquisition Price
• August 12, 2024 (date) — Date of Earliest Event Reported
• Permian Basin (location) — Geographic focus of acquisition

FAQ

Key Financial Figures

• $0.20 — ge on Which Registered Common Stock, $0.20 par value OXY New York Stock Exchan

Filing Documents

• ny20033325x5_8k.htm (8-K) — 35KB
• ny20033325x5_ex1-1.htm (EX-1.1) — 230KB
• 0001140361-24-037330.txt ( ) — 488KB
• oxy-20240812.xsd (EX-101.SCH) — 4KB
• oxy-20240812_def.xml (EX-101.DEF) — 17KB
• oxy-20240812_lab.xml (EX-101.LAB) — 26KB
• oxy-20240812_pre.xml (EX-101.PRE) — 19KB
• ny20033325x5_8k_htm.xml (XML) — 6KB

01

Item 8.01 Other Events Underwriting Agreement On August 12, 2024, Occidental Petroleum Corporation (the "Company"), CrownRock Holdings, L.P. (the "Selling Stockholder"), J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and RBC Capital Markets, LLC (collectively, the "Underwriters") entered into an underwriting agreement (the "Underwriting Agreement") pursuant to which the Selling Stockholder agreed to sell to the Underwriters, and the Underwriters agreed to purchase from the Selling Stockholder, subject to and upon the terms and conditions set forth therein, 29,560,619 shares of the Company's common stock, par value $0.20 per share (the "Offering"). The Offering was made pursuant to the Company's registration statement on Form S-3 (Registration No. 333-281228) (the "Registration Statement") that became effective when filed with the U.S. Securities and Exchange Commission on August 2, 2024, a prospectus included in the Registration Statement, and a preliminary prospectus supplement and final prospectus supplement, each dated August 12, 2024. The Offering closed on August 14, 2024. The Company did not sell any of its shares of common stock in the Offering and the Company will not receive any of the proceeds from the Offering. The Underwriting Agreement contains customary representations, warranties and covenants, customary conditions to closing, indemnification obligations of the Company, the Underwriters and the Selling Stockholder, including for liabilities under the Securities Act of 1933, as amended, and other obligations of the parties. The representations, warranties and covenants contained in the Underwriting Agreement were made only for purposes of such agreement and as of specific dates, were solely for the benefit of the parties to such agreement, and may be subject to limitations agreed upon by the contracting parties. The foregoing description of the Underwriting Agreement does not purport to be complete and is qualified in its entirety by refer

Financial Statements and Exhibits

Financial Statements and Exhibits. (d) Exhibits . 1.1 Underwriting Agreement, dated August 12, 2024, among Occidental Petroleum Corporation, CrownRock Holdings, L.P., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and RBC Capital Markets, LLC. 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 14, 2024 OCCIDENTAL PETROLEUM CORPORATION By: /s/ Nicole E. Clark Name: Nicole E. Clark Title: Vice President, Chief Compliance Officer and Corporate Secretary

View Full Filing

View this 8-K filing on SEC EDGAR