In the first major U.S. oil deal since the pandemic hit the industry, supermajor Chevron announced on Monday that lit had entered into a definitive agreement to buy Houston-based Noble Energy in an all-stock transaction valued at US$5 billion.

Under the terms of the deal, Noble Energy shareholders will receive 0.1191 shares of Chevron for each Noble Energy share. The total enterprise value of the transaction is US$13 billion, including debt, Chevron said.

The rationale for the deal is a low-cost acquisition of quality Noble Energy proved reserves which will fit strategically into Chevron’s plans in the U.S. shale patch and abroad.

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Source: Oil Price

Image Credit: David Herrera/Flickr

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