MIDLAND, Texas — According to a news release, Occidental, or Oxy, has announced an agreement to acquire Midland-based oil and gas producer CrownRock L.P., a joint venture of CrownQuest Operating LLC and Lime Rock Partners.
The deal has Oxy acquiring the producer for cash and stock in a transaction worth about $12 billion, including the assumption of CrownRock's debt.
The deal is expected to deliver increased free cash flow on a diluted share basis.
According to the release, CrownRock's over 94,000 net acres of "well-positioned assets" expand Occidental's scale in Midland.
“We believe the acquisition of CrownRock’s assets adds to the strongest and most differentiated portfolio that Occidental has ever had. We found CrownRock to be a strategic fit, giving us the opportunity to build scale in the Midland Basin and positioning us to drive value creation for our shareholders with immediate free cash flow accretion,” said Occidental President and Chief Executive Officer Vicki Hollub. “We are excited about combining CrownRock’s high-performing team into our organization and expect to continue Occidental’s exceptional operational and financial results for years to come.”
To see the full release, click here.