Occidental Petroleum Corp. said Thursday it will buy out Plains Exploration & Production Co.’s stakes in two jointly operated Midwest oil and gas fields for $1.25 billion.
The fields produce about 13,000 barrels of oil equivalent per day, and have about 92 million barrels in proved reserves, said Los Angeles-based Occidental in a statement.
The sale, which is expected to close in the fourth quarter, follows deals last December in which Occidental paid $1.55 billion for 50 percent stakes in the Permian Basin of West Texas and New Mexico and Piceance Basin of Colorado.
The sale will reduce Plains’ corporate debt by at least $1 billion and allow it to cut next year’s capital spending to $1.35 billion, said Houston-based Plains Exploration.
Occidental shares rose 24 cents, less than 1 percent, to $76.86 in morning trading on the New York Stock Exchange.