The Oil and Gas Corporation Occidental Petroleum Shifts Its Focus to Debt Reduction After Acquiring Shale Oil Producer CrownRock for Twelve Billion US Dollars Last December. CEO Vicki Hollub Announced This Strategic Decision at the CERAWeek Conference by S&P Global in Houston.

"In light of the undervaluation of our shares, we have pursued an intensive buyback program in recent years," Hollub said. The acquisition of CrownRock, a company with extensive shale oil reserves in the Permian Basin, led to a significant increase in Occidental Petroleum's daily production by about 170,000 barrels of oil equivalent.

The Acquisition, Largely Financed by Debt, Represents a New Approach for Occidental. Over 80 Percent of the Purchase Price Was Covered by New Liabilities, Increasing the Company's Debt Ratio to 1.7 Times Pre-tax Earnings. Hollub Announced Plans to Reduce Debt Burden to $15 Billion Through Asset Sales.

Investor Warren Buffett Plays a Key Role, Financially Linked to Occidental Petroleum Since 2019. Following the Announcement of the Acquisition of CrownRock, Buffett Expanded His Stake in the Company by Purchasing Shares Worth Almost 600 Million US Dollars, Thereby Increasing His Share in Occidental to 34 Percent.

Hollub emphasized the importance of the acquisition for increasing shareholder value, particularly through higher dividends and share buybacks. She is convinced that the investment in the development of oil and gas deposits will generate an attractive return on the invested capital.