Chevron Corp has announced the acquisition of Anadarko Petroleum Corp for US $33 billion, which reinforces its position in the production of shale and liquefied natural gas with the largest merger in the industry since Royal Dutch Shell bought BG Group in 2016.
With the rise in oil prices this year, Chevron and its biggest rival, Exxon Mobil, have been doubling investments in the United States Permian Basin, one of the main centers of shale exploration.
Chevron said the agreement to buy Anadarko, one of the largest remaining independent producers in the United States, would give the company a 120-kilometer wide corridor through the Delaware Basin, as well as the Mozambique LNG project, part of one of the largest current investment plans in the industry.
Shares in Chevron fell 4% before the opening of Wall Street operations, as investors pondered the cost of the deal, which includes taking on US $15 billion of Anadarko’s debt.
Shares in Anadarko rose 33%, reflecting the 39% premium offered by Chevron compared to Thursday’s market closing price. The offer of US $ 65 per share was structured in 75% of shares and 25% in cash.
Producers in the Permian Basin pump around 4 million barrels per day (bpd) and IHS Markit expects it to reach 5.4 million bpd by 2023, more than the total output of any OPEC country other than Saudi Arabia.