Chevron to Acquire Anadarko for $33B in Stock and Cash

(Bloomberg) -- Chevron Corp. will acquire Anadarko Petroleum Corp. for $65 per share, the company said in a statement. Anadarko shareholders will receive 0.3869 shares of Chevron and $16.25 in cash for each Anadarko share.

Chevron will issue 200 million shares and pay $8 billion in cash. The company will also assume about $15 billion of net debt.

Chevron expects the deal to add to free cash flow and earnings per share one year after closing, at $60 Brent. The company will boost its share repurchase rate by $1 billion to $5 billion per year upon closing of the deal.

The transaction is expected to achieve run-rate cost synergies of $1 billion before tax and capital spending cuts of $1 billion within a year of closing.

“This transaction builds strength on strength for Chevron. The combination of Anadarko’s premier, high-quality assets with our advantaged portfolio strengthens our leading position in the Permian, builds on our deepwater Gulf of Mexico capabilities and will grow our LNG business. It creates attractive growth opportunities in areas that play to Chevron’s operational strengths and underscores our commitment to short-cycle, higher-return investments,” Chevron Chairman and CEO Michael Wirth says.

The combined company will continue to be led by Wirth as Chairman and CEO and will remain headquartered in San Ramon, California.

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