Chevron Corp said on Friday it would buy Anadarko Petroleum Corp for $33 billion in cash and stock.
The offer of $65 per share represents a 39 percent premium to Anadarko’s Thursday close.
The total enterprise value of the transaction is $50 billion.
Message #2936 from richardred at 10/19/2011 9:55:56 AM
Chevron considering acquisitions, analyst says
NEW YORK (MarketWatch) -- Chevron Corp. /quotes/zigman/289939/quotes/nls/cvx CVX -0.45% may consider acquisitions of comparable size to its $4.3 billion purchase of Atlas earlier this year as it mulls options for its cash holdings, analyst Pavel Molchanov of Raymond James said in a note to clients on Wednesday. Meeting with investors and other Wall Streeters at a lunch on Tuesday, Chevron CEO John Watson and other company officials said the company favors "small, more bolt-on deals" up to and including the size of the Atlas acquisition, Molchanov said. "Management looks for resource accumulation acquisitions like Atlas that will add long-term value, noting that paying for current production is often expensive," he said. Chevron is also considering dividend increases and stock buybacks in order to deploy its $13 billion in cash, but signaled it's not planning a large, short-term buyback.
|To: richardred who wrote (4830)||3/28/2018 9:56:54 AM|
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|Oil price still lucrative enough for deals in the Permian Basin|
Oil producer Concho to buy rival RSP in Permian push
(Reuters) - Oil and gas producer Concho Resources Inc said on Wednesday it will buy smaller rival RSP Permian Inc in an all-stock deal valued at about $8 billion, in a bid to run the largest drilling program in the Permian Basin.
Many energy companies, including Exxon and Chevron, have swarmed to the Permian Basin to boost production because of its prolific resources and relatively cheap costs. Production there is expected to rise by 75,000 barrels per day to 3 million bpd in March.
The combined company, which will be owned 74.5 percent by Texas-based Concho, will have 27 rigs in the Permian Basin.
The deal will add about 92,000 net acres to Concho’s existing oil fields in the Permian Basin, increasing total acreage to 640,000, the companies said.
“This combination allows us to consolidate premier assets that seamlessly fold into our drilling program”, Concho Chief Executive Officer Tim Leach said in a statement.
RSP shareholders will get 0.320 of Concho shares for each stock held, worth about $50.24 per share - a premium of nearly 29 percent to RSP’s close on Tuesday.
Shares of RSP Permian were up 19.1 percent at $46.35 in premarket trade.
The companies said including debt, the value of the deal is $9.5 billion. The equity value of the deal was calculated based on 155.53 million outstanding shares of RSP.
“This is a significant acquisition, and a lot of synergies that make sense, said RBC analyst Scott Hanold, adding the 29 percent premium was a reasonable price to pay.
The acquisition is likely to add to Concho’s earnings in the first year after the deal closes, which is expected in the third quarter, the companies said.