Oxy reportedly eyes potential $1B sale of Delaware acreage

Occidental Petroleum is considering a sale of some of its Permian assets, Reuters reported May 3, citing unidentified sources familiar with the matter. The sources said the company is working with a financial adviser on a sale process for acreage in the Barilla Draw area on the Texas side of the Delaware Basin. They added that the acreage covers about 27,500 net acres and produces 24,400 boe/d. Occidental declined to comment to Reuters, and the sources said a deal is not guaranteed.

If a transaction materializes, the company could fetch more than $1 billion for the assets, according to the sources. That would help Oxy in its drive to reduce net debt, which at YE23 stood at over $18.5 billion. The company is funding at least some of the $9.1 billion cash portion of its CrownRock LP acquisition, announced last year, with new debt. However, in February it delayed closing to 2H24 after the Federal Trade Commission made a second request for information. At the time, CEO Vicki Hollub said the delay would force the company to postpone $4.5-6.0 billion in planned asset sales.