Occidental Petroleum has agreed to buy CrownRock, a major privately held energy producer operating in the Permian Basin, for $12 billion. CrownRock is developing a 100,000-acre position in the Midland Basin portion of the Permian, which spans 20 counties in western Texas. Occidental will issue $9.1 billion in debt and about $1.7 billion in common stock to finance the transaction. Occidental is also raising its quarterly dividend from 18 cents to 22 cents per share beginning next year. The U.S. energy sector is experiencing increased consolidation, particularly in the Permian Basin, as seen with significant mergers such as ExxonMobil's takeover of Pioneer Natural Resources. The acquisition is expected to close in the first quarter of 2024.