It's not just the Permian: Why Chevron buys Anadarko for $ 33 billion – Anadarko Petroleum Corporation (NYSE: APC)



"We will now see Chevron (NYSE: CVX) become the undisputed leader of all Permian players, both in terms of production growth and cost," said Rystad Energy's director of analysis, Per Magnus. Nysveen, pointing out that Anadarko (NYSE: APC) is the softest area of ​​the Delaware Basin.

The shares of CLC have slipped 5% in today 's trade at the announcement of its acquisition of APC, amounting to $ 33 billion, but the contract is largely greeted: "This transaction seems perfect. Oil is bouncing back, but Anadarko's share price is stagnating, "said Chris Widell, CEO of Sponte Resources.

"It's clear that Anadarko's preferred position in the Delaware Basin, where Chevron is increasing its position from 240,000 net acres to more than 1.4 million net acres," says Andrew Dittmar of Drillinginfo. "The Delaware Basin currently offers the best economy on the shale market in the country."

But it's not just the Permian that is at the root of the deal: it is increasing CLC's deepwater centers in the Gulf of Mexico from six to 16, contributing to the growing production of the Colorado DJ Pool. , and the Mozambique LNG project is part of one of the projects in the sector. largest investments currently planned.

Doug Leggate, of BofA Merrill, believes that "the benefits of synergies, significant asset sales and the reduction of several aspects of APC's composition, such as the development of LNG, will transfer much of from the increase in the value remaining "to CVX; the company has upgraded Neutral's CVX to Buy with a price target of $ 140.

The acquisition of APC will also make CVX a 55% stake in Western Midstream Partners (NYSE: WES) after being "remarkably absent in the mid-term wave of recent years," says RT Dukes of Wood Mackenzie .


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