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$CVX "Ultra Major" Status Is Within Chevron's Reach

Very big Chevron (-4.94%) has announced plans to acquire very medium-sized Anadarko Petroleum (+31.98%) for $33 billion in the energy industry’s largest deal since 2016.
Chevron is the No. 2 energy producer in the U.S. behind Exxon Mobil. But Chevron’s beefing up its presence in high-growth areas to gun for that top spot and the title of…*drumroll please*...“ultra major.”
Enter: Anadarko, with its wide-ranging oil and gas fields and a name straight out of Marvel. A deal gives Chevron a stronger position in the southwestern U.S.’ Permian Basin—the world’s most productive oil field. As a result of the acquisition, Anadarko and Chevron will claim a 75-mile stretchof contiguous acreage in the basin.
But...that’s not the entire story. 36 hours ’til Thrones? Maybe this drama will tide you over. Occidental Petroleum reportedly also made a bid for Anadarko, per CNBC. It offered upwards of $70/share to Chevron’s $65 (a 39% premium over Anadarko’s Thursday closing price), but apparently money cannot buy you love. Now, Occidental is “considering its options.”


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3 comments:

  1. Oh I just love it when big changes happen like this in the stock trade. It can just get so boring sometimes as lots of the stocks I watch don't change all that often.

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  2. The competition is on! Exciting news when big companies try to buy out smaller companies. Though it's not good for economy it's really interesting to watch on the stock trade side of things.

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  3. I love the sense of humour with which you pose a situation as serious as this.
    If there is one thing I´m clear about, is that big companies never stop expanding their operations, they are the example that we must take in our lives.

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