Chevron news about the company no longer bidding on Anadarko Petroleum (NYSE:APC) has CVX stock up on Thursday.
Chevron (NYSE:CVX) says that it will not be making a counter offer for Anadarko Petroleum. Instead, the company will allow the four-day match period to expire and expects APC will terminate the merger agreement. This will have CVX receiving a $1 billion termination fee from the company.
Here’s what company Chairman and CEO Michael Wirth has to say about the Chevron news.
“Winning in any environment doesn’t mean winning at any cost. Cost and capital discipline always matter, and we will not dilute our returns or erode value for our shareholders for the sake of doing a deal. Our advantaged portfolio is driving robust production and cash flow growth, higher investment returns and lower execution risk. We are well positioned to deliver superior value creation for our shareholders.”
The Chevron news about the company dipping out on the bidding war for Anadarko Petroleum comes after an offer was made by Occidental Petroleum (NYSE:OXY). This had the company placing a bid that was roughly 23% above CVX’s own offer for APC.
Chevron also notes that it is planning to increase its share repurchase rate. The company says that it will be increasing this by 25% to $5 billion per year.
CVX stock is up 2%, APC stock is down 3% and OXY stock is down 5% as of Thursday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.