Occidental announced it has entered into a definitive agreement to sell non-strategic acreage in the Permian Basin to an affiliate of Colgate Energy Partners III, LLC, for $508 million, subject to closing adjustments to reflect an April 1, 2021 effective date. The transaction, which is expected to close in the third quarter of 2021, includes approximately 25,000 net acres in the Southern Delaware Basin in Texas with current production of approximately 10,000 barrels of oil equivalent per day from about 360 active wells. Proceeds from the sale will be applied toward debt reduction.

“We continue to advance our divestiture and deleveraging goals while delivering value for our shareholders,” said President and Chief Executive Officer Vicki Hollub. “This transaction brings our post-Colombia divestiture total to over $1.3 billion of the planned $2 billion to $3 billion, and since August 2019 we have divested more than $9 billion of assets.”

The company’s 2021 guidance for capital and production remains unchanged.

About Occidental

Occidental (NYSE:OXY) is an international energy company with assets in the United States, Middle East, Africa and Latin America. We are one of the largest oil producers in the U.S., including a leading producer in the Permian and DJ basins, and offshore Gulf of Mexico. Our midstream and marketing segment provides flow assurance and maximizes the value of our oil and gas. Our chemical subsidiary OxyChem manufactures the building blocks for life-enhancing products. Our Oxy Low Carbon Ventures subsidiary is advancing leading-edge technologies and business solutions that economically grow our business while reducing emissions. We are committed to using our global leadership in carbon management to advance a lower-carbon world.

About Colgate Energy

Based in Midland, Colgate Energy is a private, independent exploration and production company focused on acquiring and developing conventional and unconventional oil properties in the Permian Basin. Colgate was founded in 2015 by Will Hickey and James Walter with initial equity commitments from Pearl Energy Investments and NGP. The company has since assembled a multi-disciplined team of over 35 professionals with an extensive history and understanding of operating in the Permian Basin.

We are actively developing properties in Reeves and Ward Counties, Texas, and Eddy County, New Mexico.