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Bond Market News
Oxy Considers 30% Permian Basin Stake Sale to EcoPetrol
July 22, 2024
Occidental (Oxy) is exploring the sale of a 30% stake in its recent Permian Basin acquisition to EcoPetrol for $3.6bn, as per a filing. EcoPetrol might even acquire a larger stake of up to 49%, with this option expiring in August, the filing noted. The Permian Basin assets were bought by Oxy from CrownRock LP for $12bn in late 2023. Bloomberg notes that any deal between the companies would be the result of a joint venture that Oxy first began with EcoPetrol in 2019, after the former’s $55bn acquisition of Anadarko. EcoPetrol had then agreed to help develop Oxy’s assets with the right to participate in future oil and gas interests acquired by Oxy. In a previous communication, Oxy was said to have told that it was planning ~$6bn in asset sales following its CrownRock deal closure. Hence the implications of the latest 30% stake sale plans to its prior communication are not clear.
Both Oxy’s and EcoPetrol’s dollar bonds were trading stable – Oxy’s 6.625% 2030s were at 106.13, yielding 5.34% and EcoPetrol’s 6.875% 2030s were at 98.3, yielding 7.25%.
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