On December 11, 2023, Occidental Petroleum Corporation announced its acquisition of CrownRock for approximately $12 billion. The transaction was structured with $9.1 billion in new debt, $1.7 billion in common equity, and the assumption of $1.2 billion of CrownRock’s existing debt. This strategic acquisition, expected to close in Q1 2024, will enhance Occidental's position in the Midland Basin, adding significant scale and immediate free cash flow accretion.

The acquisition included 1,700 undeveloped locations, with 1,250 ready for development at sub-$60 WTI breakeven and 750 at sub-$40 WTI breakeven. This addition will increase Occidental’s U.S. Onshore sub-$40 breakeven inventory by 25%, diversifying their portfolio and boosting corporate returns. The assets also feature nearly 10,000 acres of substantive surface acreage and extensive infrastructure, including four recycling plants, enhancing Occidental's operational efficiency and water recycling capabilities.

Occidental's President and CEO, Vicki Hollub, highlighted the strategic fit and value creation potential of the acquisition, while CrownQuest Operating CEO Tim Dunn expressed optimism about the benefits for CrownRock’s stakeholders.

Both Occidental and CrownRock engage in business activities in Canada, particularly in the energy sector, which may further expand with this acquisition. Financial and legal advisors for Occidental were BofA Securities and Latham & Watkins LLP, respectively. CrownRock was advised by Goldman Sachs & Co. LLC, TPH&Co, and Vinson & Elkins LLP. Occidental also announced an increase in its quarterly common stock dividend by $0.04 to $0.22, starting February 2024.