Occidental Petroleum, under CEO Vicki Hollub, aims to finalize the acquisition of CrownRock, a Permian oil and gas producer, by August 2024, aligning with the timeline of their quarterly earnings report. The $12-billion deal, initially announced at the end of the previous year, will solidify Oxy’s position in the Permian Basin by adding approximately 170,000 barrels of oil equivalent per day and around 1,700 undeveloped locations to their assets. This move is part of the broader consolidation trend in the U.S. oil industry, demonstrated by the FTC’s involvement in scrutinizing several ongoing acquisitions, including this highly anticipated transaction between Oxy and CrownRock. Although the deal was originally targeted to close in the first quarter of 2024, regulatory reviews by the FTC have pushed the timeline back, with the latest update suggesting the end of the second quarter as the new expected closure period. Occidental’s management remains in constructive discussions with the FTC and is hopeful for a third-quarter completion. The magnitude and significance of this deal are underscored by mentioning another major acquisition in the sector, ExxonMobil’s $60 billion takeover of Pioneer Natural Resources, which recently concluded and has altered the energy industry’s dynamics.

Oil & Gas, Mergers and Acquisitions,United States