: Occidental to pay $12B to buy private Permian basin company CrownRock

Occidental Petroleum Corp.’s OXY was down 1.5% in premarket trading on Monday after the oil company said it would pay $12 billion for privately held Permian Basin oil and gas producer CrownRock L.P., which is a joint venture of CrownQuest Operating LLC and Lime Rock Partners. CrownRock had reportedly drawn bids from several oil and gas companies. Occidental said the deal will add about $1 billion in cash flow in the first year based on $70 per barrel oil. Occidental said it will increase its quarterly common stock dividend by 4 cents a share to 22 cents a share beginning with its February 2024 declaration. The WSJ reported late last month that Occidental was in talks to pay more than $10 billion for CrownRock. Occidental plans to finance the deal with $9.1 billion of new debt and issuing about $1.7 billion of common equity, while assuming $1.2 billion of existing CrownRock debt. The deal is expected to close in the first quarter of 2024.

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