Occidental Petroleum Corp. (Oxy) has agreed to acquire privately held Permian Basin oil and natural gas producer CrownRock L.P. in a deal valued at roughly $12 billion.

Oxy plans to finance the acquisition by incurring $9.1 billion in new debt, issuing about $1.7 billion of common equity and assuming CrownRock’s $1.2 billion of existing debt, Oxy management said. 

The transaction, slated to close during the first three months of 2024, is the latest of several blockbuster deals announced this year in the Lower 48 oil and gas patch. 

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Midland, TX-based CrownRock is a joint venture of CrownQuest Operating LLC and Lime Rock...