Occidental Petroleum Corporation (NYSE:OXY) disclosed the sale of certain Delaware Basin assets in Texas and New Mexico to Permian Resources Corp (NYSE:PR) for about $818 million.

Occidental is selling Permian Resources around 27,500 net acres in the Barilla Draw Field of Texas and 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 transaction is expected to close in the third quarter of 2024, pending customary conditions.

In addition, Occidental completed other disposals totaling around $152 million in 2024, with proceeds from these sales to be used to reduce debt.

Occidental announced a divestiture program of $4.5 billion-$6 billion, which is projected to be completed within 18 months following the expected August acquisition of CrownRock.

As of March 31, Permian Resources' cash and cash equivalents stood at $13.3 million.

"This acquisition is a natural fit for us given its high-return inventory and proximity to our current operated position," said Will Hickey, Co-CEO of Permian Resources.

Permian Resources expects the acquisition to be accretive to all key per share metrics, including cash flow, free cash flow and net asset value per share.

In June, Occidental's TerraLithium teams up with BHE Renewables for sustainable lithium extraction from geothermal brine.

Investors can gain exposure to the OXY stock via Texas Capital Funds Trust Texas Capital Texas Oil Index ETF (NYSE:OILT) and First Trust Nasdaq Oil & Gas ETF (NASDAQ:FTXN).

Price Action: OXY shares are down 0.42% to $59.93 at the last check Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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