• 2 minutes California to ban gasoline for lawn mowers, chain saws, leaf blowers, off road equipment, etc.
  • 6 minutes China and India are both needing more coal and prices are now extremely high. They need maximum fossil fuel.
  • 11 minutes Europeans and Americans are beginning to see the results of depending on renewables.
  • 40 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 15 hours NordStream2
  • 4 hours US intel warns China could dominate advanced technologies By NOMAAN MERCHANT October 22, 2021
  • 3 days The Climate Scare Stories Began With Far Left Ideology Per GreenPeace Co-Founder
  • 2 days Biden Sets Target Of 50% EV Share In U.S. Car Sales In 2030
  • 7 hours Putin and Xi have decided not to attend the Climate Summit in Glasgow
  • 3 days Storage of gas cylinders
  • 3 days "The Hidden Story About California's Container Ship Backlog" via Corbett Report
Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Occidental Petroleum, Anadarko Seal The Deal

Occidental Petroleum and Anadarko yesterday signed a merger agreement putting the final stroke to the biggest deal in oil and gas since Shell’s acquisition of BG Group.

Hart Energy quoted a statement by Oxy’s chief executive, Vicki Hollub, as saying, “This transaction further establishes Occidental as a premier operator in prolific global oil and gas regions with the ability to deliver production growth of 5% through investment in projects with industry-leading returns.”

Indeed, the deal will cement and expand Occidental’s position as the largest oil producer in the Permian after it incorporates Anadarko’s acreage, which comes in at some 600,000 acres gross in the Delaware Basin, part of the largest shale play. It is to a large extent this acreage that prompted Chevron to bid for its smaller rival, but the supermajor yesterday dropped out of the race, leaving all 600,000 acres as well as assets outside the shale patch to Occidental.

Chevron had offered to pay some US$33 billion for Anadarko and assume US$15 billion in debt, with 75 percent of the price to be paid in stock and the rest in cash. The enterprise value of Anadarko, Chevron said at the time, was US$50 billion.

Yet Occidental, which had tried to acquire Anadarko before, returned on the scene with a higher percent of the total to be paid in cash, of which US$10 billion provided by Warren Buffett in what surprised many as an uncharacteristic move in oil and gas.

Initially, Oxy offered 50 percent of the US$57-billion price in cash and the rest in stock, but Anadarko was reluctant to accept this bid. Oxy then upped the cash portion of the deal to 80 percent and won the approval of Anadarko’s board. Chevron, meanwhile, walked away US$1 billion richer from the breakup fee Anadarko owed it for such a case and with a higher share price as traders apparently appreciated the fact that it won’t be spending almost US$50 billion on an acquisition.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News