1. Home
  2. / Oil and Gas
  3. / Chevron Invests $5 Billion and Announces Acquisition of Oil and Gas Company Noble Energy
Reading time 2 min of reading

Chevron Invests $5 Billion and Announces Acquisition of Oil and Gas Company Noble Energy

Written by Kelly
Published on 20/07/2020 at 09:30
Chevron investe US$5 bi e anuncia compra da empresa de óleo e gás Noble Energy
Sonda da Noble Energy em alto mar
Seja o primeiro a reagir!
Reagir ao artigo

Chevron Oil Company Closes Deal to Acquire Noble Energy Oil and Gas Company in Transaction Valued at US$ 5 Billion

On Monday (20), the American multinational Chevron announced that it has entered into a contract to purchase the oil and gas company Noble Energy, based in Houston, in a deal valued at US$ 5 billion that involves only stock, according to Reuters.

See Also Other News

Based on Chevron’s closing prices on July 17, 2020, and the terms of the agreement, Noble Energy shareholders will receive 0.1491 shares of Chevron for each share of Noble Energy. The total value of the company, including debts, in the transaction is US$ 13 billion.

The acquisition of Noble Energy provides Chevron with low-cost proven reserves, as well as attractive and underdeveloped resources that will enhance an already advantageous upstream oil and gas portfolio.

Noble Energy brings low-capital offshore assets and cash generation in Israel, strengthening Chevron’s position in the Eastern Mediterranean. The company also owns unconventional assets in the Denver-Julesburg Basin in Colorado, and 92,000 acres in the Permian Basin, between West Texas and New Mexico.

Chevron’s offer comes more than a year after it did not purchase Anadarko Petroleum Corp in a bidding war won by Occidental Petroleum Corp.

“Our strong balance sheet and financial discipline give us the flexibility to be buyers of quality assets during these tough times,” said Chevron’s President and CEO, Michael Wirth.

“The combination with Chevron is an attractive opportunity to join a diversified and admired global leader in energy, with a top-notch balance sheet and strong returns for shareholders”, said David Stover, President and CEO of Noble Energy.

Oil and Gas Producers and COVID-19 Crisis

Shale or unconventional hydrocarbon producers have been hard hit by the collapse of oil prices in April due to the COVID-19 pandemic and the brief price war between Saudi Arabia and Russia, leading many oil and gas companies to declare a suspension of payments.

Although prices have recovered from their lows, they remain depressed as a new wave of coronavirus cases threatens to slow the recovery of fuel demand.

Kelly

Engenheira de Petróleo especialista em Eficiência Energética e pós-graduada em Engenharia Civil; Possui experiência em atividades na indústria petrolífera onshore. Entre em contato para sugestões de pauta, postar vagas de emprego ou proposta de publicidade em nosso portal.

Share in apps