Chevron acquires Andarko Petroleum Corporation
Chevron says the acquisition will provide $2bn in anticipated operating cost and capital synergies
Chevron Corporation has agreed to acquire all outstanding shares of Anadarko in a stock and cash transaction valued at $33bn, or $65 per share. The total enterprise value of the transaction is $50bn.
Chevron expects the acquisition to strengthen its position in large shale, deepwater and natural gas resource basins.
“This transaction builds strength on strength for Chevron,” said Chevron’s Chairman and CEO Michael Wirth. “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. It creates attractive growth opportunities in areas that play to Chevron’s operational strengths and underscores our commitment to short-cycle, higher-return investments.”
“The strategic combination of Chevron and Anadarko will form a stronger and better company with world-class assets, people and opportunities,” said Anadarko Chairman and CEO Al Walker. “I have tremendous respect for Mike and his leadership team and believe Chevron’s strategy, scale and operational capabilities will further accelerate the value of Anadarko’s assets.”
The combination of the two companies will create a 75-mile-wide corridor across the Delaware basin, extending Chevron’s position as a producer in the Permian.