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Occidental Petroleum (NYSE:OXY) is close to an agreement to sell assets in the Barilla Draw region of Texas to Permian Resources (PR) for about $1 billion.
A deal may be announced in the coming weeks if talks don’t fall apart, according to a Reuters report on Thursday, which cited people familiar with the matter. A rival bidder for the Permian Basin assets could still emerge.
Reuters first reported in early May that Occidental (OXY) was exploring a sale of part of its operations in the Permian Basin that could fetch more than $1 billion.
The asset sale comes as Occidental (OXY) agreed to purchase CrownRock in December 2023 in a $12B deal. The deal is expected to close in August. Bloomberg reported on Tuesday that Occidental (OXY) was marketing the sale of up to $5B of blue-chip bonds in as many as five parts to finance its acquisition of CrownRock, which has significant Permian Basin assets.
