SAN RAMON, California (Covering Katy News) – Chevron announced this morning that it’s entered into an agreement to buy Woodlands-based Anadarko Petroleum for $33 billion.
Under the deal, Chevron will acquire all of the outstanding shares of Anadarko in a stock and cash transaction valued at $65 per share. Based on Chevron’s closing price on Thursday, Anadarko shareholders will receive 0.3869 shares of Chevron and $16.25 in cash for each Anadarko share. It’s expected to deliver $2 billion dollars in savings when the companies merge.
“This transaction builds strength on strength for Chevron,” said Chevron’s Chairman and CEO Michael Wirth. “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.”
“The strategic combination of Chevron and Anadarko will form a stronger and better company with world-class assets, people and opportunities,” said Anadarko Chairman and CEO Al Walker. “I have tremendous respect for Mike and his leadership team and believe Chevron’s strategy, scale, and operational capabilities will further accelerate the value of Anadarko’s assets.”