US oil giant Chevron Corp. has agreed to acquire 100% of Noble Energy’s outstanding shares in an all-stock transaction valued at $10.38/share or $5 billion. Under the deal, Noble shareholders will own 0.1191 Chevron shares for each Noble share. The valuation is 7% higher than Noble’s share price on July 17 or about 12% higher than its 10-day average share price. The purchase is about $13/share lower than analysts’ estimates.
The transaction will provide Chevron with attractive undeveloped resources and low-cost, proven reserves in the East Mediterranean and US shale basins. Nobel operates the Leviathan and Tamar gas fields in offshore Israel as well as the Aphrodite gas discovery in Cyprus which is waiting for a final investment decision. It also owns acreages in the US’ Denver-Julesburg Basin and west Permian Basin.
Noble produced 350,000 boepd in the second quarter of 2020, of which its US onshore assets contributed to 248,000 boepd. Meanwhile, its Israeli offshore assets are expected to produce about 100,000 boepd at full production. Chevron said the acquisition would add its oil and gas reserves by 18% from last year. The deal also includes an established position and an integrated midstream business the Eagle Ford shale.
