U.S. Oil major Chevron said it has completed the acquisition of Noble Energy, following approval by Noble Energy shareholders.
Chevron is exchanging $5 billion worth of its shares for Noble Energy’s in the all-stock deal priced at $10.38 per share. The deal value grows to $13 billion when Houston-based Noble Energy’s debt is included.
Chevron now owns Noble Energy’s oil and natural gas operations in northeast Colorado, in Texas and off the coast of Israel and West Africa.
“We are pleased to welcome Noble Energy’s employees and shareholders to Chevron. Noble’s high-quality assets complement Chevron’s advantaged upstream portfolio, and the combination is expected to deliver strong financial benefits,” Chevron CEO Michael Wirth said in a statement.
“With an industry-leading balance sheet and a track record of capital discipline, we believe we’re in a different place than others and can protect the dividend while driving long-term value”, Wirth noted.
Chevron and Noble Energy entered into a definitive merger agreement providing for Chevron’s acquisition of Noble Energy in an all-stock transaction on 20 July 2020. Reuters reported, citing Rystad Energy data, that the acquisition of Noble Energy would boost Chevron’s U.S. shale oil holdings and make it the 2nd-largest producer behind EOG Resources.