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Chevron has struck a deal to buy Noble Energy for $5 billion

Chevron has struck a deal to buy Noble Energy for $5 billion

California, July 21 - Neftegaz.RU. The United States' 2nd-biggest energy company Chevron announced that the company had entered into a definitive agreement to buy the Houston independent oil and gas producer Noble Energ, valued at $5 billion, or $10.38 per share. The total enterprise value, including debt, of the transaction is $13 billion.

Based on Noble Energy’s proved reserves at the end of 2019, the deal will add approximately 18% to Chevron’s year-end 2019 proved oil and gas reserves at an average acquisition cost of less than $5 per barrel.

Noble Energy has stakes in Israel’s mammoth gas fields Tamar and Leviathan, in the DJ Basin in the US state of Colorado, in the Permian Basin and Equatorial Guinea in West Africa.



“Our strong balance sheet and financial discipline gives us the flexibility to be a buyer of quality assets during these challenging times,” Chevron’s chairman and CEO Michael Wirth said in a statement.

“This combination is expected to unlock value for shareholders, generating anticipated annual run-rate cost synergies of approximately $300 million before tax, and it is expected to be accretive to free cash flow, earnings, and book returns one year after close,” Wirth added.

The acquisition will boost Chevron’s proved oil and gas reserves by about 18%, and is expected to save $300 million in operating costs one year after closing.

To read the article in Russian.