Occidental Petroleum to buy Permian producer CrownRock for $12 billion, raise dividend
Occidental Petroleum on Monday agreed to buy CrownRock, a major privately held energy producer that operates in the Permian Basin, for $12 billion.
The deal is latest in a spate of consolidation in the U.S .energy sector, particularly in the Permian, the largest oil-producing region in the U.S. The transaction is expected to close in the first quarter of 2024.
CrownRock is developing a 100,000-acre position in the Midland Basin, a portion of the Permian that spans 20 counties in western Texas. The Midland Basin produced 15% of U.S. crude in 2020, according to the U.S. Energy Information Agency.
The transaction will add 170,000 barrels of oil equivalent per day to Occidental’s production as well as 1,700 undeveloped locations to the company’s operations in the Permian.
Occidental will issue $9.1 billion in debt and about $1.7 billion in common stock to finance the transaction.
Occidental Petroleum
Jay L. Clendenin | Los Angeles Times | Getty Images
Occidental CEO Vicki Hollub said the company is purchasing CrownRock to increase its scale in the Midland Basin.
“It’s the scale, it’s the inventory, and all of that has helped now for us also to step up our dividend,” Hollub told CNBC’s “Squawk Box” on Monday. Occidental is raising its quarterly dividend to 22 cents a share from 18 cents a share beginning next year.
CrownRock is one of the last major private producers in the Permian alongside Endeavor Resources. The company is led Texas billionaire Timothy Dunn and backed by the Houston-based private equity firm Lime Rock Partners.
Occidental is the ninth-largest energy company in the U.S. with a market capitalization of $49.7 billion. Warren Buffett‘s Berkshire Hathaway owns about a 26% stake in the company. Occidental’s stock has fallen 10% this year. Its shares were down less than 1% in premarket trading Monday.
Hollub said Berkshire Hathaway was not involved in the CrownRock deal, though Occidental did discuss with Buffett how the company fits into its corporate strategy.
Occidental’s last major acquisition was its purchase of Anadarko Petroleum for $55 billion in 2019. The buy of Anadarko loaded the company with debt and sparked a bitter dispute with activist investor Carl Icahn, who sold the remainder of his stake in the company in 2022.
Hollub said Occidental’s goal is to slash its debt below $15 billion even with the $9.1 billion in obligations the company is assuming through the CrownRock acquisition. Occidental plans to do this by divesting some domestic assets that are not core to the company’s portfolio, the CEO said.
“The debt picture over the next two to three years is actually about what it would have been without this acquisition because we use the combination of cash flow and the divestitures to work that down,” Hollub said. “So the metrics are going to be about the same as they would have been.”
Occidental’s purchase of CrownRock is the third major deal in the energy sector in less than two months.
Exxon Mobil announced in October that it is acquiring Pioneer Natural Resources for about $60 billion. Pioneer is one of the largest producers in the Midland Basin, according to Enverus. Weeks later, Chevron announced it had agreed to purchase Hess for $53 billion.
Hollub said Exxon’s acquisition of Pioneer did not influence Occidental’s decision to purchase CrownRock.
When asked about falling oil prices, Hollub said Occidental expects U.S. crude to average $80 a barrel. West Texas Intermediate was trading around $71 on Monday. Hollub attributed dropping crude prices to record U.S. production.
“It would be prudent of U.S. producers to be careful in terms of putting too much supply in the market,” Hollub said.
She said the company is able to breakeven with oil at $40 a barrel: “We have the capability to continue to deliver value to keep our production and even grow our production modestly,” Hollub said.
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Electric vehicles’ share of the market continues to climb in America’s second city, with BEV registrations up more than 50% in the first quarter of 2025 compared with the same period last year. Great news, but charging hasn’t up – but a new plan from Chicago Department of Transportation aims to build up enough infrastructure for the city to keep up.
In a bid to keep up with the rapid growth of EVs, Chicago Department of Transportation (CDOT is currently seeking public feedback on a plan called “Chicago Moves Electric Framework.” The city’s first such plan, it outlines initiatives that include a curbside charging pilot through the city’s utility, ComEd, and expanded charging access in key areas throughout the city.
Unlike other such plans, however, the new plan aims to focus on bringing electric vehicle charging to EIEC and low income communities, too.
“Through this framework, we are setting clear goals and identifying solutions that reflect the voices of our residents, communities, and regional partners,” said CDOT Commissioner Tom Carney. “By prioritizing equity and public input, we’re creating a roadmap for electric transportation that serves every neighborhood and helps drive down emissions across Chicago.”
Neighborhoods on the south and west sides of Chicago experience a disproportionate amount of air pollution and diesel emissions, largely due to vehicle emissions according to CDOT. Despite that, most of Chicago’s public charging stations are clustered in higher-income areas while just 7.8% are in environmental justice neighborhoods that face higher environmental burdens.
“Too often, communities facing the greatest economic and transportation barriers also experience the most air pollution,” explains Chicago Mayor Brandon Johnson. “By prioritizing investments in historically underserved areas and making clean transportation options more affordable and accessible, we can improve both mobility and public health.”
The Framework identifies other near-term policy objectives, as well – such as streamlining the EV charger installation process for businesses and residents and implementing “Low-Emission Zones” in areas disproportionately impacted by air pollution by limiting, or even restricting, access to conventional medium- and heavy-duty vehicles during peak hours.
The Chicago Moves Electric Framework includes the installation of Level 2 and DC fast charging stations in public locations such as libraries and Chicago’s Midway Airport, “supporting not only personal EVs but also electric taxis, ride-hail and commercial fleets.”
Chicago has a goal of installing 2,500 public passenger EV charging stations and electrifying the city’s entire municipal vehicle fleet by 2035.
Electrek’s Take
I hate to sound like a bed-wetting liberal here, guys, but Chicago is getting EVs absolutely right with big utility incentives on both vehicles and infrastructure, a governor willing to stand behind smart environmental policy, and a solid push for more and better infrastructure in the areas where they’ll do the most good. They’re even thinking of the children.
Here’s hoping more cities follow suit.
SOURCE: ComEd, via Smart Cities Dive; featured image by EVgo.
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With a fully-enclosed, G-Wagen-inspired body and an 80 mile electric range, the Bodo G-Wagon golf cart is the NEV you need when you decide it’s time to get serous one-upping the rest of the Palm Beach country clubbers.
If you love the look of the $230,000 Mercedes-Benz G580 off-roader, but think the 579 hp, 6,800 lb. electric 4×4 is probably overkill for occasional trips to the golf course and country club, this G-Wagen-inspired golf cart might be just what you’re looking for.
The shiny black 2024 Bodo G-Wagon sold at Mecum Auctions last month for $31,900, which seems like it might not be a lot of money to the sort of person who decides to take a flyer on a goofy, limited-use EV that ships with real, metal doors, power windows, heating and air conditioning, fully digital instrument cluster and infotainment, and a “posh,” caramel leather interior.
It even has windshield wipers, power steering, and a rear-seat entertainment system that’s built into the front headrests!
It’s really nice in there
Under the hood, the Bodo packs a 15 kW (20 hp) electric motor drawing power from a 10 kWh li-ion battery that won’t deliver a scorching 0-60 mph time (it only goes 35), but will deliver you and your buddies from one end of any golf course in North America and back several times over, thanks to the G-Wagon’s 80 mile range.
The official Mecum Auctions listing goes into a bit more detail, and I’ve included it here, in case it gets deleted after a while and you’re just finding this for the first time in 2027:
Be the envy of any country club or golf community showing up with this 2024 Bodo G-Wagon Golf Cart. Perhaps more appropriately known as an E-Wagon, this baby G-Wagon is powered by a 15kW motor with a 10kWh lithium battery. Boasting an 80-mile range and a 35 MPH top speed, the Bodo is an enclosed, luxury golf cart that pampers occupants with heating and air conditioning, rear-seat entertainment, power windows, power locks and a posh, caramel-colored interior. With the Bodo fitted with power steering and 4-wheel power disc brakes with brake boost, drivers will think they’re in a full-size G-Wagon, thanks to the multiscreen entertainment cluster, the rearview camera, windshield wipers, turn signals, running lights and so much more.
Finished in black with the right amount of brightwork, the overall vibe is one of jaw-dropping, smile-inducing fun. While the Bodo would be an excellent choice for any golf community, it should also prove to be hugely popular around a race track or car condo community as well, or maybe even a neighborhood with its own airplane runways. Over the past decade in particular, the demand for unique, luxury golf carts has been on the rise, and understandably so. The number of luxury communities with specific interests in sports, aero and auto has also been on the rise, with people buying homes in these exclusive locations to better engage with like-minded people. All too often a golf cart is the perfect way to get around these gated neighborhoods, and this one is enclosed, comes with the amenities of a full-size car and is infinitely more stylish.
You can check out a few more photos of the 2024 Bodo G-Wagon golf cart that sold at Mecum, below – and if you want one for yourself, you’re in luck! I found this brand-new 2025 “G600 E-Wagon” (in white) for $23,900 at Gulf Carts in Santa Rosa Beach, Florida. Head on down to the comments and let us know if you buy it.
G-Wagon golf cart gallery
SOURCE | LOTS MORE PHOTOS: Mecum Auctions.
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