Chevron Acquires Noble Energy for $5 Billion in All-Stock Deal

Updated 11 months 1 week ago

Chevron has entered into a definitive agreement to acquire all outstanding shares of Noble Energy in an all-stock transaction valued at $5 billion based on a $10.38 per share price. Noble shareholders will receive 0.1191 shares in Chevron for each Noble share. The total enterprise value of the transaction, including debt, is $13 billion. Chevron will issue 58 million shares of stock.

Credit Suisse acted as a financial advisor to Chevron, and J.P. Morgan Securities advised Noble. The deal is expected to close in the fourth quarter of 2020, subject to Noble shareholder approval. Noble shareholders approved the deal in October 2020.

Chevron Chairman & CEO

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.