Occidental Petroleum outbids Chevron for Anadarko Petroleum
Occidental Petroleum has offered a competitive bid for Anadarko Petroleum, making a cash-and-stock offer that values the U.S. crude oil and natural gas producer at about $57 billion, topping a bid last week from Chevron.
The Houston-based company on Wednesday sent a letter to Anadarko's board, offering $76 per share in cash and stock that it says is about a 20 percent premium to Chevron's $33 billion deal.
Occidental, which said its bid would give Anadarko shareholders $38 in cash and 0.6094 shares of Occidental stock for each Anadarko share, says its bid values Anadarko at $57 billion, including debt and book value of noncontrolling interest.
The two bids come as U.S. crude prices have climbed more than 40 percent this year.
Besides a much-improved position in the lucrative Permian Basin of West Texas, whichever company takes ownership of Anadarko will also gain a significant presence in the Gulf of Mexico, add a robust liquefied natural gas project in Mozambique and pick up significant ownership of two shale plays in the Rockies.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CVX | CHEVRON CORP. | 145.65 | +0.67 | +0.46% |
| OXY | OCCIDENTAL PETROLEUM CORP. | 51.64 | -0.39 | -0.75% |
| APC | NO DATA AVAILABLE | - | - | - |
"We have been focused on Anadarko for several years because we have long believed that we are ideally positioned to generate compelling value from a combination with them," Occidental President and CEO Vicki Hollub said in a statement.
While Anadarko has long been targeted a possible takeover target due to its wide-range of assets, including its liquefied natural gas (LNG) facility in Mozambique that big oil giants, especially Exxon, have been racing to become the first operator in, it has a host of other benefits for Chevron.
In a statement Chevron CEO Michael Wirth said the combination of Anadarko's premier, high-quality assets with our advantaged portfolio strengthens our leading position in the Permian, builds on our deep water Gulf of Mexico capabilities and will grow our LNG business."
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Occidental said a combination, which it said it hopes to complete no later than the end of this year, with Anadarko would boost its position in the Permian Basin.