Occidental Petroleum is about to finalize a major trade to sell its assets in the Barilla Draw area of Texas to Permian Resources for about $1 billion.
According to reports on Thursday citing sources, Occidental Petroleum (OXY.US) is about to finalize a major trade to sell its assets in the Barilla Draw area of Texas to Permian Resources (PR.US) for about $1 billion. If negotiations go smoothly, the trade could be officially announced in the next few weeks. However, potential buyers of the assets in the Permian Basin may still include other competitors.
As early as the beginning of May, Reuters first reported that Occidental Petroleum was considering selling part of its business in the Permian Basin, with an expected price tag of over $1 billion. The decision to sell assets complements another major acquisition that Occidental Petroleum made in December 2023, when it agreed to acquire CrownRock for $12 billion. The trade is expected to be completed in August.
Tuesday's report further revealed Occidental Petroleum's financial strategy. According to reports, the company is actively marketing up to five high-quality bonds worth a total of $5 billion to provide funding support for its acquisition of CrownRock. CrownRock is a company with a large number of assets in the Permian Basin, and this acquisition will significantly enhance Occidental Petroleum's influence in the region. As asset sales and acquisition activities progress, Occidental Petroleum's business layout in the Permian Basin will be further optimized and strengthened.