Chevron announced this morning it’s intention to purchase Noble Energy in an all stock deal valued at $13 billion inclusive of debt.
Noble’s main production is offshore Israel & Egypt, West Africa offshore, Permian Basin (92,000 net acres), DJ Basin (336,000 acres) Colorado, and Eagle Ford. Permian production appears concentrated in SE Reeves County, south of Pecos town and Interstate 20 clustered along US Highway 285 south of town, drilling activity deferred (source Investor Handout March 2020 slide 15).
Although most corporate acquisitions disappoint, Chevron looks astute walking away from the Anadarko bid in 2019 with a $1 billion fee, Chevron is buying Noble after Noble stock declined 60% YTD.
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