Occidental Petroleum's Strategic Asset Sale Plan Amid Pending Acquisition
Starting the sales process
Occidental Petroleum is exploring the sale of its assets in the Barilla Draw region of Texas, part of the prolific Permian Basin. The company is looking to tap into the strong buyer interest for the assets and could fetch over $1 billion from the sale.
This move aligns with the company's strategy to sell $4.5 billion-$6 billion in assets to repay debt after acquiring CrownRock. Occidental plans to reduce its debt principle by at least $4.5 billion through asset sales and free cash flow, aiming to maintain its investment-grade credit rating.
A plan to get ahead of the situation
Occidental Petroleum is on track to close a $12 billion deal for CrownRock, significantly increasing its debt to nearly $29 billion. Learning from past experiences, the company is taking early steps to avoid repeating its 2019 Anadarko Petroleum acquisition situation.
Starting the sales process early and capitalizing on the strong market environment is a wise move to prevent potential financial risks for Occidental Petroleum.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.