Occidental Petroleum OXY on Friday closed the sale of its mineral and royalty rights, spanning nearly 250,000 acres in the Denver-Julesburg (DJ) Basin in Colorado, to Elk Range Royalties for $905 million.

The assets are being developed by operators, including Chevron CVX and Civitas CIVI, who collectively accounted for more than half of the wells drilled in 2024, Elk Range Royalties said in a statement.

Occidental, in its fourth-quarter earnings report, disclosed that it would divest a portion of its upstream assets, including non-operated assets in the Rockies and Permian assets not included in its near-term development plan, for a total of $1.2 billion.

The company plans to use the proceeds from these asset sales to lower its debt, which increased following its $12 billion purchase of privately-held CrownRock in August last year.

For the quarter ended December 31, 2024, Occidental reported a net long-term debt of $24.98 billion.