• 2 minutes Rational analysis of CV19 from Harvard Medical School
  • 4 minutes While U.S. Pipelines Are Under Siege, China Streamlines Its Oil and Gas Network
  • 7 minutes Renewables Overtake Coal, But Lag Far Behind Oil And Natural Gas
  • 5 hours China wields coronavirus to nationalize American-owned carmaker
  • 2 hours Joe Biden the "Archie Bunker" of the left selects Kamala Harris for VP . . . . . . Does she help the campaign ?
  • 15 hours Open letter from Politico about US-russian relations
  • 1 day US will pay for companies to bring supply chains home from China: Kudlow - COVID-19 has highlighted the problem of relying too heavily on one country for production
  • 3 days Trumpist lies about coronavirus too bad for Facebook - BANNED!
  • 3 days China's impending economic meltdown
  • 5 mins Trump Hands Putin Major Geopolitical Victory
  • 5 hours COVID&life and Vicious Circle: "Working From Home Is Not Panacea For Virus"
  • 1 day Trump is turning USA into a 3rd world dictatorship
  • 15 hours Oil Tanker Runs Aground in Mauritius - Oil Spill
  • 2 days Liquid Air Battery
  • 2 days What the heroin industry can teach us about solar power (BBC)
  • 3 days The Truth about Chinese and Indian Engineering
Massive Losses Force Glencore To Slash Dividends

Massive Losses Force Glencore To Slash Dividends

The coronavirus-fueled demand destruction of…

Are Oil Majors Giving Up On Guyana?

Are Oil Majors Giving Up On Guyana?

Guyana has become a hotspot…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Chevron Acquires Noble Energy In First Major COVID Oil Deal

In the first major U.S. oil deal since the pandemic hit the industry, supermajor Chevron announced on Monday that lit had entered into a definitive agreement to buy Houston-based Noble Energy in an all-stock transaction valued at US$5 billion.

Under the terms of the deal, Noble Energy shareholders will receive 0.1191 shares of Chevron for each Noble Energy share. The total enterprise value of the transaction is US$13 billion, including debt, Chevron said.

The rationale for the deal is a low-cost acquisition of quality Noble Energy proved reserves which will fit strategically into Chevron’s plans in the U.S. shale patch and abroad.

Chevron and Noble Energy’s boards have unanimously approved the deal, which is expected to close in Q4 2020, subject to shareholder approval of Noble Energy shareholders, regulatory approvals, and other customary closing conditions.

Last year, Chevron bid to buy Anadarko, but was outbid by Occidental in what analysts now see as an ill-timed decision for Oxy to pursue such a huge and leveraged transaction.

The Chevron-Noble deal is expected to boost Chevron’s portfolio of assets in the Permian, DJ, and Eagle Ford basins, as well as diversify Chevron’s portfolio with large-scale producing assets in the Eastern Mediterranean.

“Our strong balance sheet and financial discipline gives us the flexibility to be a buyer of quality assets during these challenging times,” Chevron’s chairman and CEO Michael Wirth said in a statement.

“This combination is expected to unlock value for shareholders, generating anticipated annual run-rate cost synergies of approximately $300 million before tax, and it is expected to be accretive to free cash flow, earnings, and book returns one year after close,” Wirth added.

The transaction announced today is the first major deal since the oil price plunge in March which hit the U.S. shale patch.

Shale firms now have fewer financing options than they did in the 2015-2016 downturn. Thus could drive consolidation in the industry with some attractive M&A opportunities emerging, Robert Polk, principal analyst with Wood Mackenzie’s U.S. Corporate Research team, said in May.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News