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Chevron to Acquire Noble Energy in All-Stock Deal; $13B Including Debt

Announced Date
July 20,2020
Deal Value $
Transaction Type
Price Per BOE $
Source Documents:
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Middle East,Gulf Coast - South Texas,Africa - West Africa,Permian - Delaware Basin,DJ Basin

United States




Production & Reserves
350,000 Boe/d

Production Mix
37 % Oil

2,050 MMboe (1P)

Production ($/boe/d)

$1P Boe

Adj. $/acre is based on production @40,000 Boe/d

Transaction Details: 

Chevron Corp. has signed a deal to acquire Noble Energy Inc. in an all-stock transaction valued at $5 billion, or $10.38 per share.

The total enterprise value, including debt, of the transaction is $13 billion.

This deal closed on October 5, 2020.

Based on Chevron's closing price on July 17, 2020 and under the terms of the agreement, Noble Energy shareholders will receive 0.1191 shares of Chevron for each Noble Energy share.

Noble's assets include offshore assets in Israel as well as de-risked acreage in the DJ Basin and 92,000 largely contiguous and adjacent acres in the Permian Basin.

Noble Energy's Assets

Acreage: ~463,000 net acres

Plays: Delaware Basin, DJ Basin, West Africa, Israel

Reserves: 2.05 billion BOE

Chevron Chairman and CEO Michael Wirth said: "Our strong balance sheet and financial discipline gives us the flexibility to be a buyer of quality assets during these challenging times. This is a cost-effective opportunity for Chevron to acquire additional proved reserves and resources. Noble Energy's multi-asset, high-quality portfolio will enhance geographic diversity, increase capital flexibility, and improve our ability to generate strong cash flow. These assets play to Chevron's operational strengths, and the transaction underscores our commitment to capital discipline. We look forward to welcoming the Noble Energy team and shareholders to bring together the best of our organizations.

"This combination is expected to unlock value for shareholders, generating anticipated annual run-rate cost synergies of approximately $300 million before tax, and it is expected to be accretive to free cash flow, earnings, and book returns one year after close."

David Stover, Noble Energy's Chairman and CEO, added: "The combination with Chevron is a compelling opportunity to join an admired global, diversified energy leader with a top-tier balance sheet and strong shareholder returns. Over the last few years, we have made significant progress executing our strategic objectives, including driving capital efficiency gains onshore, advancing our offshore conventional gas developments and significantly reducing our cost structure. As we looked to build on this positive momentum, the Noble Energy Board of Directors and management team conducted a thorough process and concluded that this transaction is the best way to maximize value for all Noble Energy shareholders. We look forward to bringing together our highly complementary cultures and teams to realize the long-term value and benefits that this combination will deliver."

The acquisition consideration is structured with 100 percent stock utilizing Chevron's attractive equity currency while maintaining a strong balance sheet. In aggregate, upon closing of the transaction, Chevron will issue approximately 58 million shares of stock. Total enterprise value of $13 billion includes net debt and book value of non-controlling interest.

The transaction has been unanimously approved by the Boards of Directors of both companies and is expected to close in the fourth quarter of 2020. The acquisition is subject to Noble Energy shareholder approval. It is also subject to regulatory approvals and other customary closing conditions.

The transaction price represents a premium of nearly 12% on a 10-day average based on closing stock prices on July 17, 2020. Following closing of the transaction, Noble Energy shareholders will own approximately 3% of the combined company.


Credit Suisse Securities (USA) LLC is acting as financial advisor to Chevron. Paul, Weiss, Rifkind, Wharton & Garrison LLP is acting as legal advisor to Chevron. J.P. Morgan Securities LLC is acting as financial advisor to Noble Energy. Vinson & Elkins LLP is acting as legal advisor to Noble Energy.

Price History

Date Deal Headline Price$/acre
Mar-24-2021 Ovintiv Sells Eagle Ford Portfolio to PE-Backed E&P for $880 Million - -
Nov-03-2020 Penn Virginia Bolts On Eagle Ford Assets for $38.4 Million - -
Nov-12-2019 Kimbell Acquires Eagle Ford Interests from Buckhorn - -

Other Noble Energy Deals

Announced DateBuyerSellerDeal Value($mm)LocationCategory
Mar-14-2019 - - Click here Texas  E&P
Feb-16-2018 - - Click here   E&P
Jan-29-2018 - - Click here   E&P
Nov-27-2017 - - Click here Texas  E&P
Nov-08-2017 - - Click here Colorado  E&P

Other Chevron Corp Deals

Announced DateBuyerSellerDeal Value($mm)LocationCategory
Oct-27-2020 - - Click here Pennsylvania  E&P
Dec-18-2019 - - Click here   E&P
Oct-01-2018 - - Click here   E&P
Apr-10-2018 - - Click here California  E&P
Sep-12-2017 - - Click here Texas  E&P