Occidental to Buy CrownRock in another Energy Sector Acquisition

Occidental to Acquire CrownRock

Occidental is one of the largest energy producers in the US, which sold 1.22 million barrels of oil and gas per day (mboed) in the third quarter. It reported revenues of $7.158 billion and profit of over $1 billion [1]. The company today announced it has agreed to buy CrownRock for $12 billion, in a deal that will enhance its presence in the important Permian Basin. [2]

This is another manifestation of the consolidation trend in the energy market, since it's the third mega acquisition announced in the current quarter. It follows the deals by giants Chevron and Exxon, valued above $50 billion each. Australia's Woodside (WPL.au) meanwhile is in merger talks with rival Santos [3]. Moreover, the deal reiterates the commitment of US companies in oil and gas, despite the recent slump in prices, which has not been contained by the OPEC+ additional supply cuts.

Occidental also announced a 22% increase in dividend, to $0.22/share, starting from February. The firm had slashed its payout form mid-2020 to reserve money due the collapse in oil prices. However, it increased it in 2022 and this year it paid a total of 0.72/share. Oil and gas companies have relied to higher dividends to satisfy investors during the energy transition. Chevron and Exxon Mobil paid dividends of $6.04/share and 3.68/share in 2023.

Nikos Tzabouras

Senior Financial Editorial Writer

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.



Retrieved 11 Dec 2023 https://www.oxy.com/siteassets/documents/investors/quarterly-earnings/oxy3q23earningspressrelease.pdf


Retrieved 11 Dec 2023 https://www.oxy.com/news/news-releases/occidental-to-acquire-crownrock-strengthening-its-u.s.-onshore-portfolio-with-premier-permian-basin-assets/


Retrieved 14 Jul 2024 https://www.woodside.com/docs/default-source/lse-announcements/2023/response-to-media-speculation---rns-submit.pdf

${getInstrumentData.name} / ${getInstrumentData.ticker} /

Exchange: ${getInstrumentData.exchange}

${getInstrumentData.bid} ${getInstrumentData.divCcy} ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%) ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%)

${getInstrumentData.oneYearLow} 52/wk Range ${getInstrumentData.oneYearHigh}

When executing customers' trades, FXCM can be compensated in several ways, which include, but are not limited to: spreads, charging commissions at the open and close of a trade, and adding a mark-up to rollover, etc. Commission-based pricing is applicable to Active Trader account types.

Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.

Past Performance: Past Performance is not an indicator of future results.

Spreads Widget: When static spreads are displayed, the figures reflect a time-stamped snapshot as of when the market closes. Spreads are variable and are subject to delay. Single Share prices are subject to a 15 minute delay. The spread figures are for informational purposes only. FXCM is not liable for errors, omissions or delays, or for actions relying on this information.