The waiting period for Occidental’s $12 billion acquisition of CrownRock LP under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 has expired. (Source: Shutterstock.com)
Occidental Petroleum expects to close its acquisition of Permian producer CrownRock LP next month after clearing antitrust hurdles.
The waiting period for the company’s $12 billion acquisition of CrownRock LP under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 has expired, Occidental announced after markets closed July 18.
"We look forward to closing our transaction with CrownRock in August and welcoming their high-performing team into our organization," Occidental President and CEO Vicki Hollub said. “We are progressing with the divestiture program that we believe will ultimately high-grade our portfolio and optimize returns for our shareholders.”
Occidental first announced the acquisition in December 2023. On Jan. 19, both companies received a second request from the U.S. Federal Trade Commission (FTC) seeking additional information regarding the proposed combination.
The FTC has taken an active role in several high-profile energy transactions over the past year, including Exxon Mobil’s $60 billion acquisition of Pioneer Natural Resources, Diamondback Energy’s $26 billion acquisition of private Permian producer Endeavor Energy Resources LP, and ConocoPhillips’ $17.1 billion acquisition of Marathon Oil.
Exxon closed the Pioneer deal in early May; the deals by Diamondback and ConocoPhillips are still pending.
The CrownRock acquisition will deliver Occidental 1,700 undeveloped locations across the core of the Permian’s Midland Basin. Most of those undrilled locations are expected to breakeven with oil prices ranging between $40/bbl and $60/bbl.
Occidental expects to add approximately 170,000 boe/d through the CrownRock acquisition.
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