Chevron announces buyout plans for The Woodlands-based Anadarko Petroleum
THE WOODLANDS, TX -- Chevron CEO Michael Wirth appeared on CNBC this morning announcing plans for Chevron to acquire Anadarko Petroleum for a stock and cash transaction valued at $33 billion, or $65 per share. “This takes a great company and makes it even better,” Wirth said.
Oil and gas producer Anadarko's towers are a cornerstone of the iconic skyline of The Woodlands. They are The Woodlands largest employer with over 3600 working here in 2018 per The Woodlands Area Economic Development Partnership. Only CISD employs more in our area. Since 2002 The Woodlands has also been the corporate office for the Chevron Phillips Chemical Company that employs over 800 in the area.
Anadarko management and employees owning stock will be handsomely rewarded as the stock part of the deal is valued at $65 a share; a 40 percent premium over yesterday's closing price. In premarket trading, the stock rose over 30 percent. The largest Anadarko shareholders are Blackrock, Dodge & Cox, The Vanguard Group and State Street Corp, who all own more than
5 percent of the outstanding shares.
Analysts speculate the combined company may exceed $50 billion with the deal, delivering over $1 billion in synergies. Chevron may have to shed some assets. The industry also wonders if Exxon Mobile or any of the other Houston-based oil majors with the resources will now also make a bid for its neighbor.
Wirth mentioned the deal plays to Chevron’s strengths in shale, deep water and natural gas. “It will allow us to continue to win in any environment and deliver great value for our shareholders,” Wirth said. The company praised Anadarko's LNG resources 'from the Permian basin to Mozambique
The deal, subject to shareholder and regulatory approvals, is expected to close later this year. Regardless, The Woodlands continues to be a strategic location for the ever-evolving global oil and gas industry.