Positive reviews of Chevron’s proposed stock swap to absorb Noble Energy for $5 billion rolled in on Monday, providing a stark contrast to last year’s $55 billion acquisition of Anadarko Petroleum by Oxy.
Positive reviews of ChevronCVX’s proposed stock swap to absorb Noble EnergyNBL for $13 billion, including assumed debt, rolled in on Monday, providing a stark contrast to last year’s $55 billion acquisition of Anadarko Petroleum
APC by Oxy. Analysts across the board lauded the deal in terms of cost, debt absorption, asset synergies and timeliness.
Below is a sampling of commentary from various firms.
Enverus Senior M&A Analyst Andrew Dittmar – “Noble makes perfect sense for Chevron to pursue as an acquisition target given complimentary positions in the Permian plus Noble’s international gas development in the Eastern Mediterranean. Given the natural fit of the assets, Noble has been viewed as likely being on Chevron’s radar from the moment Chevron chose to walk away from any bidding contest with Occidental over Anadarko.
“Along with the Permian, the best fit and biggest draw in Noble’s portfolio for Chevron may be the Eastern Mediterranean gas projects at Leviathan and Tamar. These are premier, long-life fields providing gas to Israel, Egypt, and Jordan. Chevron, like its major peers, has targeted these types of international gas projects as key pieces of its portfolio likely seeing long-term secular tailwinds to support gas demand over the next few decades.”
Tom Ellacott, senior vice president, corporate analysis, at Wood Mackenzie – “Chevron was our top pick to lead bottom-of-the-cycle corporate consolidation arising from the oil price collapse and the Covid-19 pandemic.
“The move follows Chevron’s US$50 billion bid for Anadarko in April 2019. Although of a smaller scale, the acquisition of Noble will go further in reducing the concentration of Chevron’s upstream portfolio around core anchor positions in the Permian, Australian LNG, Kazakhstan and the US Gulf of Mexico.
“Noble’s portfolio in the DJ basin will add a new play to Chevron’s US unconventional portfolio.
