Chevron to Buy Noble Energy in $5 Billion All-Stock Deal

  • Chevron (NYSE:CVX) has agreed to buy Noble Energy (NASDAQ:NBL) in a $5 billion all-stock transaction valuing the latter at $10.38 per share, or 0.1191 share of CVX stock, the oil major said in a release.
  • Including debt, the transaction values Noble at $13 billion. The takeover price is a 7.5% premium to Noble’s closing stock price on Friday.
  • If approved, the deal would expand Chevron’s presence in Colorado’s DJ basin and the Permian basin, and give it assets in the eastern Mediterranean and West Africa.
  • Chevron is targeting potential annual cost savings of $300 million with the acquisition. The deal is expected to be accretive to free cash flow, earnings, and book returns one year after close, according to the announcement.

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