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Chevron said Monday that it has entered into an agreement to acquire Noble Energy, a large independent oil-and-gas producer, in a $5 billion all-stock transaction.

Why it matters: It will expand Chevron's footprint in the U.S. shale patch, where the company is competing with rival Exxon.

  • Noble also has operations in the Mediterranean Sea and West Africa.
  • The total deal value, including debt, is $13 billion, according to Chevron. The Wall Street Journal notes that it's the "largest oil-patch tie-up since the coronavirus pandemic delivered a shock to the industry."
  • Some analysts see the coronavirus pandemic leading to substantial new consolidation in the U.S. sector.

Flashback: Chevron was already looking for acquisitions before the pandemic took aim at the oil industry.

  • Last year, Chevron looked to buy Anadarko Petroleum, another large independent player, but declined to enter into a bidding war with Occidental Petroleum, which ultimately bought the company.

What they're saying: Chevron said the deal for Noble would enhance its position in several areas, including the prolific Permian Basin.

  • Overall, the deal will add 18% to Chevron's proven oil-and-gas reserves and provide an estimated $300 million in annual cost-savings, the announcement states.
  • Chevron said the deal improves its international gas holdings, noting it "brings low-capital, cash-generating offshore assets in Israel, strengthening Chevron’s position in the Eastern Mediterranean."

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Shale's struggles will persist despite a rise in oil prices

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WTI, the benchmark U.S. oil future, traded Wednesday morning at its highest since early March — highlighting how the worst of shale's crisis is seemingly over, though more bankruptcies likely lie ahead.

Why it matters: Its price at the time — $43 — is still too low for many producers to do well, though it varies from company to company.

Ohio Gov. Mike DeWine tests positive for coronavirus ahead of Trump visit

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Ohio Gov. Mike DeWine (R) has tested positive for COVID-19 and plans to quarantine at his home for the next 14 days, his office announced Thursday. He currently has no symptoms.

Why it matters: The 73-year-old DeWine was set to meet President Trump Thursday on the tarmac at an airport in Cleveland and was tested as part of standard protocol. He is the second governor known to have contracted the coronavirus, after Oklahoma Gov. Kevin Stitt (R).

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Coronavirus dashboard

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  1. Global: Total confirmed cases as of 12:30 p.m. ET: 18,860,908 — Total deaths: 708,676— Total recoveries — 11,394,821Map.
  2. U.S.: Total confirmed cases as of 12:30 p.m. ET: 4,834,546 — Total deaths: 158,445 — Total recoveries: 1,577,851 — Total tests: 58,920,975Map.
  3. Politics: Pelosi rips GOP: "Perhaps you mistook them for somebody who gives a damn" — Ohio Gov. Mike DeWine tests positive.
  4. Public health: Fauci says task force will examine aerosolized spread.
  5. Business: July's jobs report could be an inflection point for the recovery — Teladoc and Livongo merge into virtual care giant.
  6. Sports: Where college football's biggest conferences stand on playing.