Chevron to acquire Noble Energy
Published by Nicholas Woodroof,
The acquisition of Noble Energy provides Chevron with offshore assets in Israel and enhances Chevron’s US unconventional position with acreage in the DJ Basin and 92 000 largely contiguous and adjacent acres in the Permian Basin.
The transaction has been unanimously approved by the Boards of Directors of both companies and is expected to close in 4Q20. The acquisition is subject to Noble Energy shareholder approval.
“Our strong balance sheet and financial discipline gives us the flexibility to be a buyer of quality assets during these challenging times,” said Chevron Chairman and CEO Michael Wirth. “This is a cost-effective opportunity for Chevron to acquire additional proved reserves and resources. Noble Energy’s multi-asset, high-quality portfolio will enhance geographic diversity, increase capital flexibility, and improve our ability to generate strong cash flow. These assets play to Chevron’s operational strengths, and the transaction underscores our commitment to capital discipline. We look forward to welcoming the Noble Energy team and shareholders to bring together the best of our organisations.”
“This combination is expected to unlock value for shareholders, generating anticipated annual run-rate cost synergies of approximately US$300 million before tax, and it is expected to be accretive to free cash flow, earnings, and book returns one year after close,” Wirth concluded.
“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,” said David Stover, Noble Energy’s Chairman and CEO. “Over the last few years, we have made significant progress executing our strategic objectives, including driving capital efficiency gains onshore, advancing our offshore conventional gas developments and significantly reducing our cost structure. As we looked to build on this positive momentum, the Noble Energy Board of Directors and management team conducted a thorough process and concluded that this transaction is the best way to maximise value for all Noble Energy shareholders. We look forward to bringing together our highly complementary cultures and teams to realise the long-term value and benefits that this combination will deliver.”
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/20072020/chevron-to-acquire-noble-energy/
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