• 4 minutes Is The Three Gorges Dam on the Brink of Collapse?
  • 8 minutes The Coal Industry May Never Recover From The Pandemic
  • 11 minutes China Raids Bank and Investor Accounts
  • 2 hours Biden admits he has been tested for Cognitive Decline several times. Didn't show any proof of test results.
  • 33 mins During March, April, May the states with the highest infections/deaths were NY, NJ, Ma. . . . . Today (June) the three have the best numbers. How ? Herd immunity ?
  • 5 hours Putin Forever: Russians Given Money As Vote That Could Extend Putin's Rule Draws To A Close
  • 16 hours Apology Accepted!
  • 47 mins Tesla Model 3 police cars pay for themselves faster than expected, says police chief
  • 3 hours The Political Genius of Donald Trump
  • 18 hours U.S. natural gas at major disadvantage in Europe and China.
  • 19 hours Biden came out of his basement today (Thursday) and said , "we have 120 Million deaths from Covid 19.
  • 2 hours Why Oil could hit $100
  • 19 hours Putin Paid Militants to Kill US Troops
  • 24 hours Per most popular Indian websites it was Indian troops not Chinese troops breach of LAC that caused the clashes. If you know any Indian media that claim to the contrary please provide the link
  • 24 hours The world is headed for big problems - interview with very smart economist
  • 1 day CoVid in Spain, 9 months before China
Hated Energy Stocks May Be About To Rebound

Hated Energy Stocks May Be About To Rebound

Energy stocks are remarkably cheap…

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 To Buy Anadarko In $33B Deal

Chevron Corporation said on Friday that it had entered into a definitive agreement to buy Anadarko Petroleum Corporation 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. Based on Chevron’s closing price on Thursday, and under the terms of the agreement, Anadarko shareholders will receive 0.3869 shares of Chevron and $16.25 in cash for each Anadarko share.

The total enterprise value of the transaction is US$50 billion, including the assumption of net debt and book value of non-controlling interest, Chevron said today.

“The combination of Anadarko’s premier, high-quality assets with our advantaged portfolio strengthens our leading position in the Permian, builds on our deepwater Gulf of Mexico capabilities and will grow our LNG business,” Chevron’s chairman and chief executive officer Michael Wirth said in a statement.

“It creates attractive growth opportunities in areas that play to Chevron’s operational strengths and underscores our commitment to short-cycle, higher-return investments,” Wirth added.

Chevron believes that the deal will unlock significant value for shareholders, generating anticipated annual run-rate synergies of approximately US$2 billion, and will contribute to free cash flow and earnings one year after close, the CEO said. Related: Big Oil Faces Multi-billion Dollar Fallout From Algeria Crisis

Following the transaction announcement, Anadarko’s shares surged more than 30 percent in pre-market trade on the NYSE on Friday.

Last month, Chevron had already announced plans to significantly grow its production in the Permian, where the U.S. supermajor has added almost 7 billion barrels of resources and doubled its portfolio value over the past two years. Chevron now expects its unconventional net oil-equivalent production in the Permian to reach 600,000 bpd by the end of 2020, and 900,000 bpd by the end of 2023.

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