Occidental Petroleum in Talks to Acquire Shale Driller CrownRock LP

According to Yahoo News, Occidental Petroleum Corp. is reportedly in discussions to purchase shale driller CrownRock LP, as the consolidation trend in North America's most productive oil field continues to gain momentum. A deal for CrownRock could be valued at over $10 billion, including debt, and may be finalized soon, according to sources familiar with the matter. CrownRock is one of the larger privately-held oil and gas producers in the Permian Basin, which is North America's largest source of crude oil. Production from this region, located in West Texas and New Mexico, has doubled in just six years, surpassing the daily oil output of OPEC heavyweight Iraq. If successful, the acquisition would expand Occidental's portfolio, which was previously enlarged by the $38 billion takeover of Anadarko Petroleum Corp. in 2019. That transaction was supported by an investment from Occidental's largest shareholder, Warren Buffett's Berkshire Hathaway Inc. The pursuit of CrownRock is part of a recent surge in deal activity within the oil sector, as executives flush with cash from the post-pandemic increase in oil prices seek to acquire rivals and secure new drilling locations. This follows Exxon Mobil Corp.'s approximately $60 billion bid for Pioneer Natural Resources Co. and Chevron Corp.'s $53 billion takeover of Hess Corp. Last month, Bloomberg News reported that CrownRock was up for sale and could potentially fetch around $8 billion. Devon Energy Corp. was among the companies interested in CrownRock, with ConocoPhillips also considering a bid, according to Reuters. CrownRock is led by Tim Dunn, a prominent Republican donor who has contributed over $20 million in the past decade to support conservative politicians.