Fri Sep 20 13:35:10 UTC 2024: ## Permian Resources Acquires Delaware Basin Acreage from Occidental for $818 Million
**Midland, TX (October 26, 2023)** – Permian Resources Corp. has successfully acquired a significant stake in the Delaware Basin from Occidental Petroleum Corp. for approximately $818 million. The deal encompasses 27,500 net acres in Texas and 2,000 net acres in New Mexico, along with substantial midstream infrastructure, including pipelines and a water recycling system.
Permian Resources anticipates the acquisition will boost its daily oil equivalent production by 15,000 barrels in the fourth quarter of 2024. The company highlighted the strategic value of the new acreage, boasting high-return potential and proximity to its existing operations.
“This acquisition is a natural fit for us,” stated Will Hickey, co-chief executive of Permian Resources. “We are confident our team will leverage its expertise to reduce costs and maximize value for our shareholders.”
The transaction is deemed financially advantageous, with an expected free cash flow yield of 17 percent and accretion to key per-share metrics.
For Occidental, the sale aligns with its debt reduction strategy following the acquisition of CrownRock LP. Occidental has been actively divesting assets and utilizing proceeds to decrease its debt load, with a goal of achieving 85 percent of its near-term debt reduction commitment by the end of the third quarter.
“We are pleased with the progress of our deleveraging program,” said Vicki Hollub, president and chief executive of Occidental. “By the end of the third quarter, we expect to achieve nearly 85 percent of our near-term $4.5 billion debt reduction commitment.”
The acquisition marks a significant step for Permian Resources, strengthening its position in the Delaware Basin and bolstering its future production capabilities. Occidental, on the other hand, continues its focus on deleveraging, contributing to its long-term financial stability.
First Piper 