4/12/2019, 12:14 PM (Source: TeleTrader)
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Chart for: Chevron Corporation

Chevron to pay $33B for Anadarko Petroleum

Chevron Corp. said on Friday it reached an agreement to acquire hydrocarbon exploration firm Anadarko Petroleum Corp. for $65 per share, at a total value of $33 billion. Anadarko shareholders will receive 0.3869 shares of Chevron and $16.25 in cash for each Anadarko share, based on Chevron’s closing price yesterday, which was $125.99, the statement said. The total enterprise value of the transaction is $50 billion.

"This transaction will unlock significant value for shareholders, generating anticipated annual run-rate synergies of approximately $2 billion, and will be accretive to free cash flow and earnings one year after close," said Chevron’s Chairman and CEO Michael Wirth.

Anadarko's shares surged 33% in premarket trade, while Chevron's stock dipped over 3% shortly after the acquisition was announced.

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