Chevron: to buy Noble Energy in 5 billion dollar stock deal

(CercleFinance.com) - Chevron has agreed to buy Noble Energy in an all-stock deal valued at 5 billion dollars which provides the US oil company with low-cost, proven reserves and undeveloped resources.


Noble Energy brings low-capital, cash-generating offshore assets in Israel, strengthening Chevron's position in the Eastern Mediterranean, the San Ramon, California-based company said in a statement.

The deal will also reinforce its presence on the US unconventional market, with acreage in the DJ Basin, which stretches beneath Colorado and Wyoming, and 92,000 acres in the Permian Basin of Texas and New Mexico.

The transaction price of 10.38 dollars per share represents a premium of nearly 12% on a 10-day average based on closing stock prices last Friday, Chevron said.

The company plans to issue approximately 58 million shares to fund the deal, whose total enterprise value reaches 13 billion dollars including debt and minority stakes.

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