OCCIDENTAL TO ACQUIRE ANADARKO FOR $57 BILLION
Houston based Occidental Petroleum Corporation entered into a definitive agreement whereby Occidental will acquire Anadarko Petroleum Corporation for $59.00 in cash and 0.2934 shares of Occidental common stock per share of Anadarko common stock, in a transaction valued at $57 billion, including the assumption of Anadarko’s debt.
“This exciting transaction will create a global energy leader with a world-class portfolio, proven operational capabilities and industry leading free cash flow metrics,” said Vicki Hollub, President and Chief Executive Officer of Occidental. “This transaction further establishes Occidental as a premier operator in prolific global oil and gas regions with the ability to deliver production growth of 5% through investment in projects with industry-leading returns. With greater scale, an unwavering focus on driving profitable growth, and our commitment to growing our dividend, we are creating a unique platform to drive meaningful shareholder value.”
The transaction provides compelling strategic and financial rationale for all stakeholders as it:
Applies Occidental’s proven operational and technical excellence to Anadarko’s portfolio;
– Enhances Permian leadership position of Occidental and bolsters portfolio with additional free cash flow generating assets;
– Creates a global energy leader with enhanced scale and expertise to lead energy into a low carbon future;
– Provides expected accretion year one, generating even stronger financial returns; and
– Presents opportunities for high impact synergies and capital spending efficiency.
The deal also creates a $100+ Billion Global Energy Leader with 1.3 Million Boe/d of Production to Drive Significant Value and Returns for Occidental and Anadarko Shareholders
Expected to Be Accretive to Cash Flow and Free Cash Flow Year-One, and Deliver $3.5 Billion of Free Cash Flow Improvement through $2.0 Billion of Annual Cost Synergies and $1.5 Billion of Annual Capital Reductions
Occidental has entered into a binding agreement to sell Anadarko’s Algeria, Ghana, Mozambique and South Africa assets to Total S.A. for $8.8 billion. The sale is contingent upon Occidental completing its acquisition of Anadarko, and would be expected to close simultaneously or as soon as reasonably practicable afterwards.
(Source Occidental – Image: Anardarko rig site in Wyoming)
- EQUINOR CELEBRATES 1000th CARGO AT HAMMERFEST LNG PLANT 11th October 2019
- NORTH SEA GIANT JOHAN SVERDRUP ON STREAM 07th October 2019
- TUGBOAT BOURBON RHODE SINKS IN HURRICANE LORENZO – 11 MISSING 29th September 2019
- EXXONMOBIL SELLS NORWAY UPSTREAM INTERESTS TO VAR ENERGY 27th September 2019
- GOOGLE SEALS THE BIGGEST PURCHASE OF RENEWABLE ENERGY IN HISTORY 25th September 2019