Chevron to acquire Anadarko for $33bln

Chevron's Big Foot deepwater project in the Gulf of Mexico achieved first oil last year

Chevron Corp agreed to buy Anadarko Petroleum Corp in a US$33 billion deal that adds U.S. shale oil and African liquefied natural gas (LNG), and puts it in the top ranks of the world's largest energy companies. Anadarko's stock surged on the news. Chevron shares were down 4.2% from Thursday's close of $125.99 a share. Cobiz Wealth LLC now owns 65,397 shares of the oil and gas development company's stock valued at $3,061,000 after purchasing an additional 9,646 shares in the last quarter. Based on Anadarko's closing price of $46.80 on Thursday, Anadarko shareholders will receive 0.3869 shares of Chevron and $16.25 in cash for each Anadarko share. DNB Asset Management AS increased its stake in Anadarko Petroleum by 15.0% during the 1st quarter.

The deal represents the 11th biggest ever for an energy and power company, according to Refinitiv.

Chevron Chief Executive Michael Wirth will lead the combined company after the deal closes. The combined company's cash flow previous year, US$36.5 billion, would have exceeded Exxon's.

Analyst firm Rystad Energy said the company has done well with the deal at a value of $50bn (£38.2bn). He said the company expects the deal to create over $1 billion in synergies. Chevron is "getting good assets at a fairly reasonable price". "And they take down Anadarko's notoriously lavish Houston HQ".

Among the best performing non-leveraged ETFs of Friday, the VanEck Vectors Unconventional Oil & Gas ETF (NYSEArca: FRAK) jumped 6.4% and iShares U.S. Oil & Gas Exploration & Production ETF (Cboe: IEO) advanced 4.4%. "This is a diversified company with assets in the deepwater Gulf of Mexico, Mozambique, Ghana, Algeria".

More news: Manchester United v West Ham: Leaky Devils can claim crucial three points

The companies say the deal creates a 75 mile corridor across the DE basin portion of the Permian.

The transaction will broaden the second highest USA vitality firm's operations in US shale oil and gasoline manufacturing, offshore drilling and liquefied pure fuel exports. That is at the heart of Chevron's Permian strategy.

Analysts predict further consolidation as the smaller companies that revolutionized the industry through advances in horizontal drilling and hydraulic fracking have seen their stock prices languish and have curtailed spending due weak returns. Chevron and Anadarko said Friday, April 12, 2019 that the deal will create a 75-mile-wide corridor across the most attractive acreage in the DE basin; bolster Chevron's position in the Gulf of Mexico and add a resource base in Mozambique to support growing LNG demand. Anadarko Petroleum had a return on equity of 10.14% and a net margin of 4.60%. Drillers have increasingly turned to the low-priced strategy to avoid the massive expense of building multibillion dollar deepwater platforms.

Anadarko also has operations in North Africa and South America. Occidental was the rival bidder that lost out to Chevron in the race to buy Anadarko, sources said on Friday. Chevron will assume $15 billion of Anadarko's debt. Credit Suisse Group cut their price objective on Anadarko Petroleum from $73.00 to $67.00 and set an "outperform" rating for the company in a report on Wednesday, February 6th. Anadarko was advised by Evercore and Goldman Sachs.

Related News:



Most liked

Man City boss Guardiola: Sane knows why he's not playing
Guardiola, 48, said: "You have to have a special energy and I think at 71 - except Roy Hodgson - the others can not do it". City can further add to the worry at Liverpool by doing their bit and getting three points at Selhurst Park.

South Sudan frets over whether Sudan coup will derail fragile peace
Sudan, which is predominantly Muslim, and the mainly Christian south fought for decades before South Sudan became independent in 2011.

Google's affordable Pixel 3a smartphones make appearance on Google Store
Do note that there's only one selfie shooter given up front, compared to the dual front shooters on the Pixel 3 duo. The Coral codename is already in use in the Google app code, and it was previously associated with the Pixel 4.

Facebook, WhatsApp and Instagram down for users globally
The USA, India, Malaysia, Thailand, and South-American countries are also having problems with social networking apps and website. Popular social media apps Facebook and Instagram are down for an extended period of time for the second time in a month.

Messenger will finally come back to the Facebook app
Software engineer Jane Manchun Wong was the first to bring the feature to light, and she's made similar discoveries in the past. Of course, this doesn't necessarily mean a public comeback of the app's "Chats" section is right around the corner.

Is Dale Steyn about to join RCB at the IPL?
Yuzvendra Chahal has been their top bowler with nine wickets but rest of the bowling line-up conceded far too many runs. He scored unbeaten 38-ball 59 which led his side to their first win of the tournament on Saturday.

Apple finally lets users listen to podcasts directly on the web
Apple will build the new apps on Marzipan, its technology that allows iOS applications to port to macOS without additional coding. People started speculating Apple would launch its other apps individually on MacOS and Troughton-Smith believes this is the case.

World's largest plane makes first test flight
In the next three years, after completing the test phase, Stratolaunch expects to launch satellite-bearing rockets into space. Mr Thomas said there were "a few little things that were off-nominal but really for a first flight it was spot on".

Lakers, Luke Walton finalize divorce everyone saw coming
The writing pretty much has been on the wall for a while, but Luke Walton no longer is head coach of the Los Angeles Lakers. Stylistically, Walton is considered a flawless fit for the uptempo system the Kings unleashed on the league this season.

Arsenal launch investigation into alleged racist abuse of Kalidou Koulibaly
We have to improve that. "We had a good result today and we have everything in our hands. "If you win there I think you send a message to everybody", said the Gabon global .

Here is why Barcelona would rest Lionel Messi vs Huesca
Mattia Perin replaced Wojciech Szczesny in the Juventus goal with Kean getting his second start alongside Paulo Dybala up front. Joao Cancelo's shot deflected off the outstretched foot of the 19-year-old forward and into the left corner of the goal .

Adam Scott takes a risk and it pays off with Masters lead
Day also shot a 67. "I thought if I just get the speed a little bit better than I did yesterday, they're going to start going in". BUNCHED UP: Molinari is the reigning British Open champion, and there are four major champions within five shots of the lead.

Who Won The Masters Last Year?
He's 43 now, something that comes into focus when he removes his hat and his bald spot seems bigger than ever. That library will be open for business as Woods begins play in his 22nd Masters .

Multiple people shot outside nightclub in Australia
Chapel Street was home to a number of popular nightclubs and the shooting on Sunday occurred while many people were still out. Detective Inspector Andrew Stamper, from Victoria's Homicide Squad, described the victims" injuries as "horrific'.

Billy Vunipola Defends 'Liking' Israel Folau's Controversial Instagram Post
Israel Folau is fighting to keep his professional career alive after a secret meeting with rugby officials was caught on camera. Australia's Rugby Union Players Association issued the following statement after Rugby Australia's position was made public.