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Oxy Sells Rockies Royalty Assets to Orion in $1.33B Deal

Announced Date
August 19,2020
Deal Value $
1,330,000,000
Net Acres
4,500,000
Transaction Type
Royalty
Buyer
Seller
Source Documents:
   Source Link
Location
Region
Rockies

Country
United States

State
Colorado

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Multiples
$Price/Net Acre
296

$Price/Adj. Net Acre
296

Transaction Details: 

Oxy has agreed to divest its Wyoming, Colorado, and Utah Land Grant assets to Orion Mine Finance (a branch of Orion Resource Partners) for approximately $1.33 billion.

The transaction, which is expected to close in the fourth quarter of 2020.

Asset Details

The assets have a footprint of approximately 4.5 million mineral acres and 1 million fee surface acres.

The acquired properties will be held under Sweetwater Royalties, a new base metals and industrial minerals royalty company, managed by Orion.

In this transaction, Orion is acquiring mineral rights to the world’s largest known trona deposit. Trona is a mineral used to make soda ash, the principal ingredient in baking soda, global glass manufacturing, pollution control systems, as well as other critical chemical applications.

Retained Assets

Occidental will retain all cash flow from currently producing oil and gas properties on the position, which are primarily cost-free royalties. Not included in the sale is approximately 2.5 million mineral acres derived from the land grant in Colorado, including Occidental’s core DJ Basin position.

Oxy CEO Vicki Hollub said: “This transaction significantly advances the progress against our $2 billion plus divestiture target for 2020. We will retain our core oil and gas assets in the Rockies, including the prolific DJ Basin in Colorado and the highly prospective Powder River Basin in Wyoming.”

Oskar Lewnowski, Chief Investment Officer of Orion, said: “Acquiring high-quality producing royalties is a core component of our investment strategy and we are thrilled to be partnering with Occidental in this transaction. This transaction offers significant royalty cash flow from the trona mines and has strong potential for mineral development. As a firm we recognize the importance of US mineral and energy production and are pleased to be able to offer our support to the existing world-class operators and their associated communities.”

Occidental was advised by RBC Capital Markets, CBRE Group Inc., and Latham & Watkins, LLP. Orion was advised by Citi and Shearman & Sterling LLP.

Rockies Deal Activity In Last 12 Months



Other Rockies Region's Deals



Announced DateBuyerSellerDeal Value($mm)LocationCategory
Dec-29-2020 - - Click here Wyoming  E&P
Dec-14-2020 - - Click here Colorado  E&P
Nov-30-2020 - - Click here Texas  E&P
Mar-27-2019 - - Click here Wyoming  E&P
Jul-27-2018 - - Click here Wyoming  E&P

Price History



Date Deal Headline Price$/acre
Nov-30-2020 Contango to Acquire Oily Assets in Big Horn, PRB, Permian Basins - -
May-28-2020 MorningStar Acquires Bankrupt Southland Royalty's Assets for $11.3MM - -
Jul-19-2018 Panhandle Inks Deal for Minerals, Producing Assets; Bakken, Permian, MidCon - -

Other Occidental Petroleum Corp Deals



Announced DateBuyerSellerDeal Value($mm)LocationCategory
Oct-01-2020 - - Click here   E&P
Aug-01-2019 - - Click here Texas  E&P
May-10-2019 - - Click here Colorado  E&P
Jun-20-2017 - - Click here Texas  E&P
Jun-19-2017 - - Click here New Mexico  E&P