Continuing the Divestment Strategy

  • Occidental plans to sell certain assets to Permian Resources for $818 million
  • The sale brings total year-to-date proceeds from divestment program to $970 million
  • Occidental aims to divest $4.5 billion to $6 billion of assets in total by Q3 2024
  • Delaware Basin assets expected to produce 15,000 barrels of oil equivalent per day in Q4

Occidental Petroleum Corporation is selling certain assets in Texas and New Mexico to Permian Resources for approximately $818 million, as part of its ongoing debt-reduction program. This sale brings the total year-to-date proceeds from its divestment program, including closed or announced disposals, to $970 million. Occidental plans to divest between $4.5 billion and $6 billion in assets by the third quarter of 2024, following its acquisition of CrownRock. The Delaware Basin assets are expected to produce around 15,000 barrels of oil equivalent per day in Q4. Occidental’s CEO Vicki Hollub expressed satisfaction with the progress made on the divestiture program, which is aimed at de-risking the financing of the CrownRock acquisition and accelerating shareholder returns. The transaction is expected to close in Q3 2024.

Factuality Level: 10
Factuality Justification: The article provides accurate information about Occidental’s plan to sell certain assets in Texas and New Mexico to Permian Resources as part of its debt-reduction program, mentions the expected production from the Delaware Basin assets, and quotes Occidental CEO Vicki Hollub. It also gives details on the timeline for the transaction and the company’s overall divestment goals.
Noise Level: 3
Noise Justification: The article provides relevant information about a specific company’s asset sale and its divestment program but lacks analysis or exploration of broader industry trends or consequences.
Public Companies: Occidental Petroleum Corporation (OXY)
Private Companies: Permian Resources
Key People: Vicki Hollub (Chief Executive)

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Financial Relevance: Yes
Financial Markets Impacted: Oil and gas exploration companies, financial markets
Financial Rating Justification: The article discusses the sale of assets by Occidental, which impacts the company’s debt reduction program and its acquisition of CrownRock. This affects the oil and gas industry and can have implications for related financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.

Reported publicly: www.marketwatch.com