Occidental Announces $950M Permian Basin Asset Divestments

Occidental (OXY) has announced the divestment of select Permian Basin assets for $950M to be used for debt reduction. The company has completed multiple transactions totaling $370M and entered into an agreement with Enterprise Products Partners to sell gas gathering assets for $580M, subject to customary conditions and regulatory approval.

Occidental Petroleum (OXY) has announced a significant divestment of select Permian Basin assets, totaling $950 million, to be used for debt reduction. The company has completed multiple transactions totaling $370 million between April and July 2025, divesting non-core and select non-operated Permian Basin upstream assets not in the company’s near-term development plans to undisclosed parties [1]. Additionally, Oxy entered into an agreement with an affiliate of Enterprise Products Partners (EPD) to sell an entity that owns certain gas gathering assets in the Midland Basin for $580 million. This agreement is subject to customary closing conditions and regulatory approval, including the expiration or termination of the Hart-Scott-Rodino Act waiting period [1].

The divestments are part of Occidental's ongoing strategy to strengthen its portfolio and reduce debt. Since the announcement of the CrownRock acquisition in December 2023, Oxy has completed transactions worth approximately $4 billion. As of July 2024, the company has repaid $7.5 billion of debt, including proceeds from non-core Delaware Basin transactions that closed in April and July. The Midland Basin gas gathering divestiture is expected to contribute an additional $580 million to debt reduction upon closing [1].

"These agreements with Occidental are consistent with Enterprise’s focus on expanding our Midland Basin franchise through organic investments in our midstream network and through targeted acquisitions that bolt-on to our existing infrastructure," said A.J. Jim Teague, co-chief executive officer of Enterprise’s general partner [3].

The transactions highlight Occidental's commitment to reducing debt and improving its financial position. The company aims to continue finding opportunities to high-grade its portfolio and generate long-term value for shareholders [1].

References:
[1] https://finance.yahoo.com/news/oxy-sells-permian-assets-valued-170600344.html
[2] https://www.marketscreener.com/news/occidental-says-it-signed-4-agreements-since-april-to-divest-950-million-of-permian-basin-assets-to-ce7c5ededa88f526
[3] https://www.investing.com/news/company-news/enterprise-products-to-acquire-occidentals-gas-gathering-assets-for-580-million-93CH-4174457
[4] https://seekingalpha.com/news/4480473-enterprise-to-buy-occidental-gas-gathering-affiliate-build-new-midland-basin-gas-processing-plant
[5] https://finance.yahoo.com/news/occidental-announces-further-progress-asset-201600648.html