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

Announced Date
August 19,2020
Deal Value $
Net Acres
Transaction Type
Source Documents:
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United States



$Price/Net Acre

$Price/Adj. Net Acre

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
Jul-13-2023 - - Click here Wyoming  E&P
Apr-03-2023 - - Click here North Dakota  E&P
Jul-13-2022 - - Click here Wyoming  E&P
Mar-08-2022 - - Click here Wyoming  E&P
Feb-09-2022 - - Click here Wyoming  E&P

Price History

Date Deal Headline Price$/acre
Aug-11-2021 Encap Investments to Buy EP Energy in $1.5 Billion Deal; Split Up Company - -
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 - -

Other Occidental Petroleum Corp Deals

Announced DateBuyerSellerDeal Value($mm)LocationCategory
Dec-11-2023 - - Click here Texas  E&P
Jun-10-2021 - - Click here Texas  E&P
Oct-01-2020 - - Click here   E&P
Aug-01-2019 - - Click here Texas  E&P
May-10-2019 - - Click here Colorado  E&P