Finally, Pacer Advisors Inc. acquired a new position in Anadarko Petroleum during the 1st quarter valued at approximately $1,909,000. That's a premium of 39% to the closing price on Thursday.
The purchase would be funded by 200 million new shares and $8 billion in cash.
Under the terms of the agreement, Anadarko shareholders will receive 0.3869 Chevron shares and $16.25 in cash for each of their shares. "We have always said and will still say that anything we do would have to make us even stronger". Cobiz Wealth LLC now owns 65,397 shares of the oil and gas development company's stock valued at $3,061,000 after purchasing an additional 9,646 shares in the last quarter.
"This transaction builds strength on strength for Chevron", chairman and CEO Michael Wirth said in a statement.
It comes after the firm said a year ago it is seeking to sell all of its Central North Sea assets as it refocuses on the U.S. shale market. Chevron is "getting good assets at a fairly reasonable price".
Chevron's takeover of one of the America's biggest independent oil and gas producers is the first major move towards consolidation since the global oil downturn as output from the USA shale industry continues to rise. "They roll their Australian LNG development capability into Mozambique", Mizuho Securities analyst Paul Sankey said in a note to investors. Anadarko Petroleum Corp.is based in The Woodlands, Texas.
The combination of the two companies will create a 75-mile-wide corridor across the DE basin, extending Chevron's position as a producer in the Permian. Stringing together continuous acreage allows companies to more efficiently carry out the advanced drilling methods needed to produce shale oil and gas.
Chevron said on Friday that the deal will significantly enhance its upstream portfolio and further strengthen its leading positions in large, attractive shale, deepwater and natural gas resource basins. Anadarko Petroleum had a return on equity of 10.14% and a net margin of 4.60%.
Strengthens Offshore Presence: Chevron is active in the offshore Gulf of Mexico and is one of key players in deepwater field. Drillers have increasingly turned to the low-priced strategy to avoid the massive expense of building multibillion dollar deepwater platforms. Its wide range of assets from the Permian Basin to the Gulf of Mexico and Mozambique left investors exposed to a multitude of risks in the global oil market.
The Anadarko deal was negotiated over the last few weeks, though Chevron has been thinking about the deal for some time, Wirth, a chemical engineer by training, said.
The transaction, which has been approved by the boards of directors of both companies, is expected to close in the second half of the year.
Chevron also said it plans to raise annual share buybacks to $5 billion from $4 billion when the deal closes and to sell $15 billion to $20 billion of assets between 2020 and 2022. It will also assume about $15 billion in debt.
Oil giant Chevron announced it's acquiring Anadarko Petroleum for $33 billion. Finally, SunTrust Banks set a $55.00 price target on shares of Anadarko Petroleum and gave the company a "hold" rating in a research report on Tuesday, January 29th. Evercore Inc. and Goldman Sachs Group Inc advised Anadarko alongside law firms Wachtell, Lipton, Rosen & Katz and Vinson & Elkins LLP.