(AOF) – Occidental Petroleum will acquire CrownRock LP, a joint venture of CrownQuest Operating LLC and Lime Rock Partners, in a transaction valued at approximately $12 billion, including CrownRock debt. The oil and gas company also announced plans to increase the quarterly dividend per share by 22% to $0.22, effective with the February 2024 declaration, in line with its focus on shareholder compensation.
Occidental Petroleum will finance the deal with $9.1 billion in new debt and the issuance of approximately $1.7 billion in common stock. The group will take on $1.2 billion of CrownRock’s existing debt.
The transaction is expected to close in the first quarter of 2024, subject to customary closing conditions and receipt of regulatory approvals.
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Biogas to green activities
Obtained through the decomposition of waste, it falls into the category of green energy. It is part of the strategy of many countries, particularly in Europe, to reduce their dependence on hydrocarbon imports. Oil groups have strong ambitions in the field, as two recent operations reveal. The British BP took over the American Archaea Energy for 4.1 billion dollars. Then, the Anglo-Dutch Shell announced the acquisition of the Danish Nature Energy for $2 billion. These operations display high valuation levels, highlighting the strong potential of the sector. TotalEnergies had already taken a stake in the American Clean Energy Fuels Corp in 2018, of which it now holds 19%. It recently joined forces with Veolia to recover biomethane from waste treatment facilities.