Chevron acquires Noble Energy in $5bn deal –

US energy giant Chevron Corporation has entered into a definitive agreement to acquire Noble Energy in an all-stock transaction valued at $5bn.

Chevron says the acquisition provides it with low-cost, proved reserves and attractive undeveloped resources as well as low-capital, cash-generating offshore assets in Israel. It will also generate cost synergies of around $300m.

Michael Wirth, chairman and CEO of Chevron, said: “Our strong balance sheet and financial discipline gives us the flexibility to be a buyer of quality assets during these challenging times. This is a cost-effective opportunity for Chevron to acquire additional proved reserves and resources. Noble Energy’s multi-asset, high-quality portfolio will enhance geographic diversity, increase capital flexibility, and improve our ability to generate strong cash flow. These assets play to Chevron’s operational strengths, and the transaction underscores our commitment to capital discipline.”

The transaction is expected to close in the fourth quarter of 2020.

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