Chevron to Acquire Anadarko in $33B Transaction

THE WOODLANDS, TEXAS — Chevron Corp. (NYSE: CVX) has entered into an agreement to acquire Anadarko Petroleum Corp. (NYSE: APC), which is based in metro Houston, in a stock and cash transaction valued at $33 billion. Chevron expects the addition of Anadarko’s assets to improve operations in several ways, such as creating a 75-mile infrastructural corridor in the Permian Basin, bolstering the company’s production in the deepwater Gulf of Mexico and elevating its presence in the midstream space. The deal will be structured as 75 percent stock and 25 percent cash. Based on Chevron’s closing stock price of $125.99 per share on Thursday, April 11, Anadarko shareholders will receive 0.3869 shares of Chevron and $16.25 in cash for each Anadarko share. The merger carries a total enterprise value of $50 billion via the assumption of debt. Chevron expects to be able to annually repurchase $5 billion of its stock in the coming years as a result of higher cash flow. The deal is expected to close during the second half of the year.


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