Occidental has announced it has entered into a purchase and sale agreement to divest Wyoming, Colorado, and Utah Land Grant assets to Orion Mine Finance (Orion) for approximately US$1.33 billion. The transaction, which is expected to close in the fourth quarter of 2020, has a footprint of approximately 4.5 million mineral acres and 1 million fee surface acres. 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.
Latham & Watkins LLP represents Occidental in the transaction with a corporate deal team led by Houston partner Michael King, with associates Thomas Hillebrand and Luke Strother. Advice was also provided on tax matters by Houston partner Jim Cole, with associate Jared Grimley; on real estate matters by Orange County partner David Meckler, with associate Meredith Hart; on structured finance matters by New York partner Loren Finegold, with associate Ed Comber; and on regulatory matters by Washington, D.C. counsel Patrick English.