Apr 12, 2019

Chevron buys Anadarko in $33 billion oil-patch mega-deal

Photo: Steve Nehf/The Denver Post via Getty Images

Oil-and-gas giant Chevron Corp. said Friday that it has agreed to acquire the big independent player Anadarko Petroleum Corp. in a $33 billion cash and stock deal.

Why it matters: Chevron, the second-largest U.S.-based multinational oil company, said the move would bolster its position in key domestic fields — notably the surging Permian Basin region of Texas and New Mexico, which produces over 4 million barrels of oil per day.

What they're saying: "The combination of Anadarko’s premier, high-quality assets with our advantaged portfolio strengthens our leading position in the Permian, builds on our deepwater Gulf of Mexico capabilities and will grow our LNG business," Chevron CEO Mike Wirth said in a statement.

Quick take: The deal underscores how oil majors are aggressively expanding their operations in the onshore shale business, especially in the Permian.

  • "The combination of the two companies will create a 75-mile-wide corridor across the most attractive acreage in the Delaware basin," the announcement says, referring to a portion of the Permian that's confusingly named after another state.
  • However, the deal is not solely about bolstering U.S. assets. "Chevron will gain another world-class resource base in Mozambique to support growing LNG demand," the announcement notes.

By the numbers: The total value of the deal, including Chevron's assumption of Anadarko's debt, is $50 billion.

What's next: The transaction will be 75% stock and 25% cash with an overall value of $65 per share, the companies said. Both companies' boards of have signed off on the deal, and they expect it to close during the second half of the year.

  • The transaction must still be approved by Anadarko shareholders and regulators, the joint announcement notes.

Go deeper: Permian drillers' $100 million pledge for the region

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U.S. coronavirus updates: Death toll surpasses 14,800

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Andrew Witherspoon/Axios

The novel coronavirus has now killed more than 2,000 people for the second day in a row, and it's infected more than 432,000 others, per Johns Hopkins data.

Where it stands: More than 14,800 people have died of COVID-19 in the U.S. — including over 4,500 in New York. The state's death toll surged to its highest one-day total on Wednesday — beating the previous day's record. 779 people died in New York in 24 hours. N.Y. has reported more cases than the most-affected countries in Europe.

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World coronavirus updates: U.K. PM "stable, improving" in intensive care

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Andrew Witherspoon/Axios

British Prime Minister Boris Johnson is "stable, improving, sat up and engaged with medical staff" in the intensive care unit of London's St. Thomas' Hospital, where he is being treated for the coronavirus, Culture Minister Oliver Dowden told the BBC Thursday.

Zoom in: The update comes as ministers meet to discuss whether to extend the United Kingdom's lockdown and after the country's health officials reported Wednesday the highest daily rise in COVID-19 deaths — 938, taking the total to over 7,300. London Mayor said Wednesday the U.K. is "nowhere near lifting the lockdown," with the virus not expected to peak there until next week.

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Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 3 a.m. ET: 1,484,811 — Total deaths: 88,538 — Total recoveries: 329,876Map.
  2. U.S.: Total confirmed cases as of 3 a.m. ET: 432,132 — Total deaths: 14,817 — Total recoveries: 23,906Map.
  3. Federal government latest: Top Trump administration officials had been developing a plan to give cloth masks to huge numbers of Americans, but the idea lost traction amid heavy internal skepticism.
  4. States latest: New York has reported more cases than the most-affected countries in Europe. Chicago's Cook County jail is largest-known source of coronavirus in U.S.
  5. Business: One-third of U.S. jobs are at risk of disappearing, mostly affecting low-income workers.
  6. World: WHO Director-General Tedros Adhanom Ghebreyesus urged countries to put politics aside "if you don’t want to have many more body bags.”
  7. Environment: COVID-19 is underscoring the connection between air pollution and dire outcomes from respiratory diseases.
  8. Tech: A new report recommends stimulus spending to help close the digital divide revealed by social distancing.
  9. What should I do? Pets, moving and personal healthAnswers about the virus from Axios expertsWhat to know about social distancingQ&A: Minimizing your coronavirus risk.
  10. Other resources: CDC on how to avoid the virus, what to do if you get it.

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