Occidental Petroleum Corporation (NYSE:OXY) shares are trading lower on the heels of a buyout of oil and gas producer CrownRock, L.P.

The company opened Friday at $58.55 a share, down 1.40%.

In December, the company inked a deal to acquire CrownRock for cash and stock in a transaction valued at about $12 billion, including assumption of debt.

"By completing this transaction, Occidental adds assets that we believe make the best portfolio in our company's history even stronger and more differentiated," CEO Vicki Hollub said.

"We also welcome new team members who will combine with ours to form a high-performing employee base that is focused on safely and efficiently developing low-emission, low-cost energy,"

The acquisition is expected to enhance the company's Permian portfolio by adding about 170 thousand barrels of oil equivalent per day (Mboed) of high-margin, lower-decline unconventional production in 2024.

The deal is expected to deliver increased free cash flow on a diluted share basis, including $1 billion in the first year based on $70 per barrel WTI.

The company also said it will increase the quarterly common stock dividend per share by 4 cents to 22 cents, beginning with the February 2024 declaration.

Also, Occidental disclosed that Colombia's Ecopetrol (NYSE:EC) will not purchase a stake in shale oil producer CrownRock, despite prior discussions about a potential deal, reported Reuters.

Last month, the company disclosed the sale of certain Delaware Basin assets in Texas and New Mexico to Permian Resources Corp (NYSE:PR) for about $818 million.

ETF Watch: Investors can gain exposure to the OXY stock via Texas Capital Funds Trust Texas Capital Texas Oil Index ETF (NYSE:OILT) and First Trust Nasdaq Oil & Gas ETF (NASDAQ:FTXN).

Now Read:

• Job Creation Tumbles in July, Higher Unemployment Strengthens Case For Interest Rate Cuts: Is The Fed Slow On The Draw?

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.