Permian Resources Corp. will buy some of Occidental Petroleum Corp.’s West Texas assets for $817.5 million, it said in a statement.
The deal is part of Occidental’s previously announced plan to divest assets to help fund its acquisition of closely held CrownRock LP.
Permian will acquire 29,500 net acres and 9,900 net royalty acres, mainly in Reeves County. The deal will be effective as of July 1, with closing expected by the end of the third quarter.
“This acquisition is a natural fit for us given its high-return inventory and proximity to our current operated position,” said Permian Resources co-CEO Will Hickey.
The assets are on the Permian Basin’s western side in an area known as the Barilla Draw region.
Occidental said as recently as May that it was fielding a lot of interest from potential buyers and was confident it could sell as much as $6 billion of assets.
The U.S. oil and gas industry has undergone a $200 billion consolidation wave over the past year, with companies looking to improve efficiencies, extend their inventory of quality drilling sites and return cash to investors.
Source: www.ttnews.com
