Editor note: At presstime, a counteroffer to acquire Anadarko by Occidental for $38 billion was presented to the Anadarko board.
The April acquisition of Anadarko by Chevron might succeed in breaking the logjam holding back oil company mergers and acquisitions, according to industry analysts at Drillinginfo.
Valued at $33 billion, only the sixth largest in terms of industry deals, the Anadarko acquisition “checks the boxes for Chevron” from a Wall Street perspective, according to Drillinginfo analyst Andrew Dittmar.
The Anadarko deal fills out Chevron’s portfolio by adding Delaware Basin acreage valued at approximately $50,000/acre; DJ Basin’s 460M net acres of Anadarko’s low royalty production and prospects; a 55 percent stake in Western Gas Partners; ten offshore facilities in the Gulf of Mexico; and a 16.5 percent operated interest in a huge LNG project in Mozambique.
The deal also propels Chevron, now at total production of 3.78MM boe/d, within chip-shot distance of rivals ExxonMobil, 4.01MM boe/d, and Shell, 3.79MM boe/d, and well ahead of BP, 2.63MM boe/d.