Chevron buys Anadarko in $33-billion bet on shale oil and LNG — the biggest energy deal in four years

Chevron Corp. agreed to buy Anadarko Petroleum Corp. in a US$33 billion bet on shale oil and liquefied natural gas that’s the industry’s biggest deal since 2015.

It also increases its exposure to LNG at a time when the fight against climate change is making natural gas the preferred fuel. Some of Anadarko’s assets may be sold after the deal closes, the company said. This is the biggest takeover in the oil and gas industry since Royal Dutch Shell Plc’s US$61 billion bid for BG Group in 2015, according to data compiled by Bloomberg. It will be in the top ten deals in the sector of all time, the data show. Chevron’s last comparable transaction was its takeover of Texaco Inc. announced in 2000.

Cash-Flow BoostInvestors will receive 0.3869 shares of Chevron and US$16.25 in cash for each Anadarko share. Chevron will issue 200 million shares and pay US$8 billion in cash. The company said it will also assume about US$15 billion of net debt, giving Anadarko an enterprise value of US$50 billion.

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