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. With extensive experience in market analysis and a strong foundation in international relations, he brings a unique perspective to financial markets. Nikos emphasizes not only technical analysis but also on fundamentals and the growing influence of geopolitics on financial trends.
As a Senior Financial Editorial Writer, he delivers comprehensive and forward-looking insights across a wide range of asset classes, including equities, commodities, and currencies. His work explores how macroeconomic events, political developments, and global policies impact market dynamics, providing readers with a deeper understanding of both short-term movements and long-term trends.
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