It’s a seller’s market in the U.S. oil patch.
Occidental Petroleum OXY -1.41%decrease; red down pointing triangle is in talks to buy CrownRock, one of the last remaining private companies of scale in the Permian basin, The Wall Street Journal reported on Wednesday. If the deal goes through, it would be the latest in a string of mergers and acquisitions this year, including Exxon Mobils $64.5 billion purchase of Permian giant
The Journal report said the deal could be valued at “well above $10 billion” including debt. CrownRock produces nearly 150,000 barrels of oil equivalent a day, according to Fitch Group. Even assuming a conservative price tag of $11 billion, it implies Occidental would be shelling out at least $73,000 per flowing barrel of oil equivalent a day for CrownRock.
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