(Bloomberg) -- Occidental Petroleum Corp. raised its production and capital spending plans for this year after closing its $10.8 billion acquisition of CrownRock LP earlier this month.
The deal will increase Occidental’s production 5% to about 1.32 million barrels of oil equivalent per day in 2024, with the extra coming from the Permian Basin, the Houston-based company said in a statement Wednesday. Capital spending will increase about 6% to $6.9 billion.
The CrownRock deal increases Occidental’s footprint in the Midland side of the Permian by about 25% and quadruples its output from the eastern part of the basin. Crucially, it allows Occidental to unlock future drilling locations by lining up its new acreage with existing sites.
Occidental’s second-quarter earnings of $1.03 a share beat the median analyst estimate of 78 cents a share due to higher production from the Permian and better-than-expected midstream earnings. The shares jumped 2.1% in extended trading before retreating.
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