Chevron to buy Anadarko in $33 billion deal

US energy giant Chevron said on  Friday it plans to acquire US independent oil and gas producer and Mozambique LNG developer, Anadarko Petroleum, in a cash and stock deal valued at $33 billion.

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Chevron said on Friday that a definitive agreement with Anadarko Petroleum was for the acquisition of all outstanding shares for a value of $65 per share.

Based on Chevron’s closing price on April 11, 2019, 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 $50 billion.

Chevron’s chairman and CEO Michael Wirth said: “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.

This transaction will unlock significant value for shareholders, generating anticipated annual run-rate synergies of approximately $2 billion, and will be accretive to free cash flow and earnings one year after close.

Anadarko chairman and CEO Al Walker added: “The strategic combination of Chevron and Anadarko will form a stronger and better company with world-class assets, people, and opportunities.

The acquisition consideration is structured as 75 percent stock and 25 percent cash, providing an overall value of $65 per share based on the closing price of Chevron stock on April 11, 2019.

In aggregate, upon closing of the transaction, Chevron will issue approximately 200 million shares of stock and pay approximately $8 billion in cash. Chevron will also assume an estimated net debt of $15 billion.

Total enterprise value of $50 billion includes the assumption of net debt and book value of non-controlling interest.

Source Chevron

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