**Occidental Petroleum Resilient in Face of Asset Transitions**
Occidental Petroleum, a prominent player in the oil and gas industry, has reaffirmed its 2024 production forecast despite recent deals involving its Midland and Delaware Basin assets. The Houston-based company reported its highest quarterly production numbers in four years for the period ending June 30, 2024, averaging nearly 1,258,000 boe/d (barrels of oil equivalent per day). This figure represents a 6% increase year over year and a 13% rise from the first quarter of 2024, which was buoyed by a Gulf of Mexico pipeline outage.
### Strategic Asset Management
Occidental’s strategic asset management strategy involves several key moves aimed at optimizing its operations and debt reduction. The company is in the process of selling non-core assets to help manage the debt incurred from its $12 billion acquisition of CrownRock LP. This acquisition, expected to enhance Occidental’s asset base with approximately 1,700 undeveloped locations and an additional 170,000 boe/d of production in 2024, is significant for the company’s expansion in the Midland Basin. The assets include around 1,700 undeveloped locations, which will provide strategic value to the company by integrating with its existing operations.
### Planned Asset Divestiture
As part of its broader asset divestiture plan, Occidental plans to sell $4.5-6 billion worth of assets by mid-2026. The company has already generated $970 million through recent and announced deals, including the sale of certain Delaware Basin assets to Permian Resources for approximately $818 million. These divestitures are aimed at derisking the financing of the CrownRock acquisition and accelerating the company’s shareholder return pathway.
### Production Outlook
The production forecast for the third quarter of 2024 remains robust, with executives predicting total production of 1,370,000-