Chevron to buy Anadarko Petroleum in a $33 billion cash and stock deal

Business


Justin Sullivan | CNBC

The South Timbalier 52 facility, 30 miles offshore on the continental shelf, is one of more than 600 Chevron structures in the Gulf.

Demand for LNG — natural gas chilled to liquid form for transport by sea — is soaring as countries like China aim to meet their energy needs with gas, which.

The deal, which is subject to shareholder and regulatory approval, is expected to close in the second half of 2019. If approved, Chevron said, it plans to boost its annual share buyback program to $5 billion from $4 billion.

Chevron said it plans to divest $15 billion to $20 billion of assets between 2020 and 2022.

“This transaction will unlock significant value for shareholders, generating anticipated annual run-rate synergies of approximately $2 billion, and will be accretive to free cash flow and earnings one year after close,” Wirth said in the company’s release.

Credit Suisse Securities is Chevron’s financial adviser, while Paul, Weiss, Rifkind, Wharton & Garrison is its legal adviser. Evercore and Goldman Sachs are financial advisers to Anadarko, while Wachtell, Lipton, Rosen & Katz and Vinson & Elkins LLP are its legal advisers.

Anadarko Petroleum stock has risen 6.8% this year, compared with a 17.6% increase in the S&P 500 Energy index over that period.

Watch: Full interview with Chevron CEO on plan to acquire Anadarko Petroleum



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