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Bloomberg
Chevron agreed to buy Noble Energy Inc for about $5 billion in shares.
The takeover is the first major deal since the coronavirus triggered a severe oil slump. It’s a clear vote of confidence in the future of the US shale industry even as it struggles to adapt to lower crude prices.
“Our strong balance sheet and financial discipline gives us the flexibility to be a buyer of quality assets during these challenging times,†Chevron Chief Executive Officer Michael Wirth said in a statement. “This is a cost-effective opportunity for Chevron to acquire additional proved reserves and resources.“
The deal values Noble at $10.38 a share, or 0.1191 Chevron shares, equivalent to a 7.5% premium over the closing price. The total enterprise value, including debt, is $13 billion.