Chevron buys Anadarko in US$33 bil bet on shale oil, LNG

Data by YCharts

The combined Chevron and Anadarko businesses will make up one of the largest operators in the US shale basins at a time when America pumps out more crude oil than Saudi Arabia and Russian Federation, the Wall Street Journal reports.

In 2018, Chevron had US$42.4 billion in revenues and pumped 3.1 million barrels of oil equivalent per day, above the level of most members of the Organization of the Petroleum Exporting Countries.

Guyana could see oil exploration activity in the ultra-deepwater region picking up pace in the near future with United States oil giant Chevron set to buy Anadarko Petroleum Corp, which holds an exploration licence for the Roraima Block offshore Guyana. Chevron fell as much as 5.6 per cent.

The company said the deal would add to its free cash flow and profit one year after closing, if Brent crude, now around $70, holds above $60 per barrel.

The merger would be the sixth largest in the industry and the biggest since Shell bought BG Group for £47...

Facebook, WhatsApp and Instagram are down again
Sunday's outage is yet another publicity problem for a company already dealing with privacy issues and regulatory probes . Facebook, Whatsapp and Instagram are reportedly down worldwide as users took to Twitter to express their frustration.


-Chevron will acquire all outstanding Anadarko shares for US$65 each, paying a mixture of cash and stock.

"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.

"Consolidation in deep water and the shales makes complete industrial sense", said Christyan Malek, the head of EMEA oil and gas research at JPMorgan Chase & Co.

Last month, Chevron had already announced plans to significantly grow its production in the Permian, where the USA supermajor has added nearly 7 billion barrels of resources and doubled its portfolio value over the past two years. "It gives the combined entity the ability to high-grade its assets and focus on where the best cash returns are".

Occidental Petroleum Corp. made a $70-per-share offer for Anadarko, according to a person familiar with the matter. Exxon reported average production past year of 3.833 million. It also plans to sell assets worth up to $20 billion between 2020 and 2022, the company said.

Apple to Split iTunes into Individual Music, TV, and Books Apps
As always, if you have any thoughts, feel free to sound them off in the comments section below! That will still be an improvement over iTunes on the Mac , to be honest.


The purchase would be funded by 200 million new shares and $8 billion in cash.

Details show the acquisition 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. Oil executives and bankers had in the past speculated that Shell may buy Anadarko, because they have adjacent acreage.

Chevron, Exxon, Royal Dutch Shell Plc and BP Plc largely missed out on the first phase of the Permian shale bonanza while more nimble independent producers such as Anadarko pioneered shale drilling technology and leased Permian acreage on the cheap. As a group, analysts expect that Anadarko Petroleum will post 1.66 earnings per share for the current year. It expects the transaction to achieve run-rate cost synergies of US$1 billion before tax and capital spending cuts of US$1 billion within a year of closing.

Credit Suisse Group AG was financial adviser to Chevron while Paul, Weiss, Rifkind, Wharton & Garrison LLP was legal adviser.

The boards of both companies have approved the transaction, and the deal is supposed to close in the second half of this year.

Trump's European Union tariff threats unlikely to happen
French Finance Minister Bruno Le Maire told a conference in Paris that the two sides needed to reach a friendly agreement. A WTO arbitrator is expected to rule this summer on how much relief the U.S.is actually entitled to.


Related news:

Hot News

isis-killer-beheading-video-story-top Listen to BTS' new EP, Map Of The Soul: Persona
Apr 14, 2019 - 19:43
On Saturday, they will be making their " Saturday Night Live " debut, where they will perform their latest single. Sheeran first revealed that he wrote a song for BTS in an interview with Heat back in November 2018.

isis-killer-beheading-video-story-top Leicester City vs. Newcastle United - Football Match Report
Apr 14, 2019 - 19:11
The last time Leicester won a Premier League game in which they trailed at half was in October 2015 against West Bromwich Albion. Leicester remain seventh after a first home defeat for boss Brendan Rodgers since his move from Celtic in February.

isis-killer-beheading-video-story-top India marks colonial massacre centenary, Britain makes no apology
Apr 14, 2019 - 18:33
To commemorate the event on the 100th anniversary, Asquith paid his tribute and laid a floral wreath at the memorial in Amritsar . The Jallianwala Bagh massacre is one of the darkest chapters in the history of India's freedom struggle.

isis-killer-beheading-video-story-top US Government Will Build Better Infrastructure For 5G Network: Donald Trump
Apr 14, 2019 - 18:30
The agency said he will talk about these 5G initiatives at a White House event with President Donald Trump later Friday. The FCC is taking very bold action, bolder than theyve ever taken before, to make wireless spectrum available.

isis-killer-beheading-video-story-top Google Pixel 3a and Pixel 3a XL case renders leaked
Apr 14, 2019 - 16:29
Going by the case design, the Pixel 3a duo is said to come with a 3.5-mm audio jack for headphone connectivity. Conferring to the leaked images, both the Pixel 3a and 3a XL will share the same design and aesthetics.

isis-killer-beheading-video-story-top One dead, three hurt in Melb club shooting
Apr 14, 2019 - 12:24
Love Machine host Steve Yousif posted on Facebook: "Overwhelmed with all your calls and texts, nothing but love for you all". Prahran shooting update: two people in critical conditions in the Alfred Hospital, a third is in a stable condition.

isis-killer-beheading-video-story-top Messi To Be Examined By Doctors After Bloody Smalling Clash
Apr 14, 2019 - 11:16
But Ernesto Valverde has quelled those worries after revealing that the Barca talisman will be good to go against United. The fans sitting there were amazed by the difference between the statistics and the performance on the field.

isis-killer-beheading-video-story-top Valtteri Bottas secures pole for Mercedes at 1,000th GP
Apr 14, 2019 - 09:53
Raikkonen's Italian team mate Antonio Giovinazzi failed to set a time due to engine problems and starts 19th and last on the grid. Team-mate Gasly was held up behind him and the Haas drivers Kevin Magnussen and Romain Grosjean were also caught out.

isis-killer-beheading-video-story-top The Masters Day 3: Woods looks the man to beat
Apr 14, 2019 - 09:41
BUNCHED UP: Molinari is the reigning British Open champion, and there are four major champions within five shots of the lead. Eddie Pepperell reacts to beating marker and Augusta National member Jeff Knox, who famously outscored McIlroy in 2014.

isis-killer-beheading-video-story-top Woods, McIlroy cool in Masters glare
Apr 14, 2019 - 08:56
Li Haotong's appearance at this week's Masters will be the 25th time a Chinese golfer has teed off in a major championship. And McGinley believes that will prove key in Augusta this week as to whether he will be in contention.

isis-killer-beheading-video-story-top Utterly Class Lomachenko Floors Crolla With Fourth Round Crushing KO
Apr 14, 2019 - 08:25
Mikey Garcia is among the mentions, but according to Atlas, his loss to Errol Spence Jr. hurt his reputation in the ring. Crolla recovered and 11 months later he won the WBA lightweight belt that Lomachenko retained on Friday.

isis-killer-beheading-video-story-top Why Meghan Markle Won't Be Posing for Photos After She Gives Birth
Apr 14, 2019 - 05:41
Prince Harry and Meghan Markle have had their royal birth plan slammed by critics, who labelled it "stage-managed" and even "weird".

isis-killer-beheading-video-story-top Marcus Smart out for 4-6 weeks
Apr 14, 2019 - 02:28
Boston will hope for a similar quick recovery from Smart, as his leadership and defensive presence is the lifeblood of the team. He tried to play through the injury, but went down again on the next possession, and had to be helped to the locker room.

isis-killer-beheading-video-story-top With Measles Outbreaks, A Deadly But Preventable Disease Returns
Apr 14, 2019 - 01:18
The health officials will try to persuade any unvaccinated person who has been exposed to measles to get the vaccine. But so far, the epidemic is largely confined to Williamsburg and within its large Orthodox Jewish community .

isis-killer-beheading-video-story-top Israel Folau stood down by Waratahs
Apr 13, 2019 - 19:29
He came under fire in 2017 during the marriage equality vote, when he publicly announced he wouldn't be supporting gay marriage. Folau , 30, is arguably the best Wallaby and this was the second time that he had made such views public in the space of a year.