Chevron Will Not Increase Offer to Acquire Anadarko

Source Press Release
Company Chevron CorporationAnadarko Petroleum Corp. 
Tags Corporate Deals, Deals, Pipelines/ tankers/ distribution, LNG & Gas Storage/Processing, Tight Gas & Liquids, Shale Oil, Shale Gas, Wolf Camp, Niobrara, Eagle Ford, Unconventional Resources, Upstream Activities
Date May 09, 2019
  • Will receive $1 billion cash termination fee
  • Increasing share repurchase rate by 25 percent to $5 billion per year
  • Committed to its advantaged portfolio and long-term value proposition

Chevron Corporation (NYSE: CVX) announced today that, under the terms of its previously announced Merger Agreement with Anadarko Petroleum Corporation (NYSE: APC), it will not make a counterproposal and will allow the four-day match period to expire. Accordingly, Chevron anticipates that Anadarko will terminate the Merger Agreement.

“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,” said Chevron’s Chairman and CEO Michael Wirth. “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.”

Upon termination of the Merger Agreement, Anadarko will be required to pay Chevron a termination fee of $1 billion. Consistent with Chevron’s commitment to superior shareholder returns, the company plans to increase its share repurchase rate by 25 percent to $5 billion per year.

Source: EvaluateEnergy® ©2019 EvaluateEnergy Ltd