The wave of mergers among North American oil and gas companies is gaining momentum. According to an insider on Wednesday (November 29th), Western oil companies are in talks to acquire oil producer CrownRock, with a bid exceeding $10 billion.
CrownRock is a shale oil developer located in the Permian Basin of western Texas, United States. The insider revealed that the outcome of this transaction may be seen within a few days.
If Western Oil successfully acquires CrownRock, it will expand the existing scale of Western Oil Company. In 2019, Western Oil acquired Anadarko Oil Company for $38 billion with investment support from Berkshire Hathaway, a subsidiary of Warren Buffett.
In September of this year, it was reported that CrownRock, led by Texas billionaire Timothy Dunn, had begun discussions with investment banks about hiring consultants for the sale process, which is expected to be launched in early 2024.
The decision of CrownRock to seek a sale also reflects how highly sought after the company is. The Permian Basin where the company is located is the largest oil field in the United States, and the profits it brings are also incredibly abundant.
The company has a net area of approximately 86000 acres in the northern part of the Midland Basin, which is part of the Permian Basin.
According to previous reports, ConocoPhillips is also considering acquiring CrownRock, while Diamondback Energy, Devon Energy, Marathon Oil, and Continental Resources are also studying whether to participate in the acquisition.
At present, major oil and gas producers are trying to expand their scale through acquisitions, which has intensified the pressure on the entire industry. For example, ExxonMobil previously acquired Pioneer Natural Resources for $60 billion, while Chevron acquired Hess Corp. for $53 billion.