Diego J. Robles | The Denver Post | fake pictures
The largest oil tanker Chevron said Monday it agreed to buy Noble Energy in a stock deal, valuing the Houston-based oil and gas producer at $ 5 billion.
The offer values Noble at $ 10.38 per share or 0.1191 Chevron stake, a 7.5% premium as of Friday’s close to Noble. The deal would value Noble at approximately $ 13 billion, including debt.
Noble’s assets will expand Chevron’s presence in the Colorado DJ Basin and the Permian Basin throughout western Texas and New Mexico. They would also add to Chevron’s assets in the eastern Mediterranean and West Africa and generate potential annual savings of $ 300 million.
Chevron’s offer comes more than a year after it was forced to abandon its takeover offer for Anadarko Petroleum, outweighed by Occidental Petroleum’s largest offer.
Oil shale producers have been hit hard when oil prices collapsed in April due to the pandemic and a brief price war between Saudi Arabia and Russia, prompting many companies to seek bankruptcy protection.
While prices have recovered from their lows, they remain depressed as a new wave of Covid-19 cases threatens to halt the recovery in fuel demand.
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