• 5 minutes Iran Says It Arrested 17 CIA Spies, Some Sentenced To Death
  • 9 minutes Will We Ever See 100$+ OIL?
  • 13 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 1 hour Iran Loses $130,000,000 Oil Revenue Every Day They Continue Their Games . . . .Opportunity Lost . . . Will Never Get It Back. . . . . LOL .
  • 5 hours Oil Giant Saudi Arabia Is Set to Start First Wind-Power Plant
  • 5 hours How is E&P of Marginal Oil on the UKCS Similar to the Shale Oil Operations in the US?
  • 2 hours So You Think We’re Reducing Fossil Fuel? — Think Again
  • 23 mins Berkeley becomes first U.S. city to ban natural gas in new homes
  • 4 hours EIA Reports Are Fraudulent : EIA Is Conspiring With Trump To Keep Oil Prices Low
  • 17 mins N.Y. Governor Signs Climate Bill
  • 11 hours Renewables provided only about 4% of total global energy needs in 2018
  • 14 hours Today in Energy
  • 15 hours First limpet mines . . . . now fly a drone at low altitude directly at U.S. Navy ship. Think Iran wanted it taken out ? Maybe ? YES
  • 8 hours Shale Oil will it self destruct?
  • 3 hours Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
  • 11 hours Which is a better domain name for OAPEC?
Alt Text

Oil Plunges As Iran Conflict Cools

Oil prices plunged by 4…

Alt Text

IEA: Don’t Expect Oil Prices To Go Much Higher

Slowing oil demand growth and…

Alt Text

Mexico Confirms Major Tax Cut For PEMEX

Mexican President Lopez Obrador presented…

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 And Occidental Start Bidding War For Anadarko

Occidental Petroleum said on Wednesday that it is proposing to buy Anadarko at a higher price than the one Anadarko had accepted from Chevron, potentially opening a bidding war for one of the U.S. companies with the strongest positions in the Permian.

Occidental Petroleum sent a letter to Anadarko’s board of directors today, offering “a superior proposal” to buy Anadarko for $76.00 per share, in which Anadarko shareholders would receive $38.00 in cash and 0.6094 shares of Occidental common stock for each share of Anadarko common stock.

The $76.00 per share cash-and-stock proposal from Occidental represents a premium of around 20 percent to the current value of the transaction with Chevron that Anadarko had accepted, Occidental said in a statement. 

“The 50-50 cash and stock transaction is valued at $57 billion, based on Occidental’s closing price on April 23, 2019, including the assumption of net debt and book value of non-controlling interest,” according to Occidental.

Less than two weeks ago, Chevron said that it had entered into a definitive agreement to buy Anadarko in a stock and cash transaction valued at US$33 billion that will boost Chevron’s position in the Permian, the Gulf of Mexico, and in liquefied natural gas (LNG). The acquisition consideration is structured as 75 percent stock and 25 percent cash, providing an overall value of US$65 per share based on the closing price of Chevron stock on April 11, 2019. Related: Trump’s Hardline On Iran Catches Markets Off-Guard

The total enterprise value of the Chevron-Anadarko transaction is US$50 billion, including the assumption of net debt and book value of non-controlling interest, while Occidental’s offer values a potential transaction at US$57 billion.

In the letter to Anadarko’s board today, Occidental said that it had made three acquisition proposals to Anadarko since late March and it was “surprised and disappointed” that the board had not engaged with Occidental on them.

“We have been focused on Anadarko for several years because we have long believed that we are ideally positioned to generate compelling value from a combination with them. We look forward to engaging immediately with Anadarko's Board and stakeholders to deliver this superior transaction,” Occidental’s president and CEO Vicki Hollub said in a statement.

Following Occidental’s bid, Anadarko shares shot up 11 percent in pre-market trade on Wednesday.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage


Leave a comment
  • Tripp Mills on April 24 2019 said:
    Interesting and I guess let the bidding war begin! Best of luck and look forward to seeing the clean, green, renewable, and support for OPEC cuts so that we all do the right thing to support the energy industry, our allies, the future, etc. All the best, Tripp

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play