Chevron has agreed to acquire all of the outstanding shares of Noble Energy in an all-stock transaction valued at $5 billion.
Chevron has agreed to acquire all of the outstanding shares of Noble Energy in an all-stock transaction valued at $5 billion. Noble Energy shareholders will receive 0.1191 shares of Chevron for each Noble Energy share. The total value, including debt, of the transaction is $13 billion.
‘Noble Energy brings low-capital, cash-generating offshore assets in Israel, strengthening Chevron’s position in the Eastern Mediterranean. Noble Energy also enhances Chevron’s leading US unconventional position with derisked acreage in the DJ Basin and 92,000 largely contiguous and adjacent acres in the Permian Basin,’ said Chevron.
Chevron chairman and CEO Michael Wirth said: ‘This is a cost-effective opportunity for Chevron to acquire additional proved reserves and resources.
Cost synergies of approximately $300 million before tax are expected to be achieved.
David Stover, Noble Energy’s chairman and CEO, said: ‘The combination with Chevron is a compelling opportunity to join an admired global, diversified energy leader with a top-tier balance sheet and strong shareholder returns. The deal is expected to add approximately 18% to Chevron’s year-end 2019 proved oil and gas reserves at an average acquisition cost of less than $5/boe, and almost 7 billion barrels of risked resource for less than $1.50/boe.
Noble Energy’s assets will enhance Chevron’s portfolio in the US onshore sector. This includes the DJ Basin; the Permian Basin – complementary acreage that enhances Chevron’s strong position in the Delaware Basin; and an established position in the Eagle Ford basin.
In West Africa it will add a strong position in Equatorial Guinea with further growth opportunities.
The transaction is expected to close in the fourth quarter of 2020.
