Occidental Petroleum Corporation OXY is reportedly planning to buy CrownRock, a significant energy producer in the western Texas area of the Permian basin.
Negotiations for the privately owned firm, potentially worth over $10 billion in debt, may soon conclude, provided discussions remain intact, and no competing bidders emerge, according to a news report by The Wall Street Journal.
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CrownRock, led by Texas billionaire Timothy Dunn and supported by private-equity firm Lime Rock Partners, holds over 80,000 net acres in Texas' Midland Basin, a section of the Permian Basin, the top oil-producing area in the U.S, the report read.
As one of the few large private entities left in the Permian, alongside Endeavor Energy Resources, CrownRock stands out.
Under Dunn's leadership, the company secured leases in the region before the shale boom.
Through strategic trades and land swaps, Dunn established CrownRock's current prominent position in a highly sought-after area of the basin.
Occidental, with a market value of approximately $53 billion, last made a significant acquisition in 2019 when it bought Anadarko for $38 billion. This deal burdened the company with substantial debt and drew the attention of activist investor Carl Icahn.
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Price Action: OXY shares are trading higher by 0.66% to $60.73 premarket on the last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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