Occidental Petroleum Corp. on Wednesday padded its bottom line with a big deal to sell a bundle of western properties, while boosting another venture to develop a massive carbon capture facility in its No. 1 Lower 48 play, the Permian Basin.

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The Houston-based independent, better known as Oxy, agreed to sell some Colorado, Utah and Wyoming land grant assets to private equity sponsored Orion Mine Finance for about $1.3 billion. 

The properties extend across 4.5 million mineral acres and one million fee surface acres. Among other things, the mineral rights include access to the world’s largest known trona deposit, a mineral used to make soda ash.

Oxy, which expects to complete the deal by year’s end, would retain all cash flow from the producing oil and gas properties, which...