Why Chevron Bought Anadarko

Here’s why Chevron agreed to acquire Anadarko in a deal valued at $50 billion.

Anadarko’s shareholders are undoubtedly pleased by the immediate 30+% surge in the price of their stock. But a number of other operators in the Permian Basin saw their share prices rise as well, in anticipation that they could also be an acquisition target.

Beyond Chevron, the largest acreage holders in the Permian Basin include Occidental, Apache, ExxonMobil, and Concho Resources. Occidental, in fact, reportedly attempted to acquire Anadarko prior to Chevron sealing the deal. But Occidental may now find themselves in the crosshairs of a bigger player looking to shore up their Permian portfolio.

Other major producers in the Permian include ConocoPhillips, EOG Resources, Pioneer Natural Resources, Noble Energy, Devon Energy, and Diamondback Energy (which acquired fellow Permian producer Energen Corporation in 2018). These companies could be targeted by the supermajors, or they could look to target smaller Permian producers like WPX Energy, Parsley Energy, or Cimarex Energy.

Which companies could be next on the acquisition list in the Permian? And which could be interested in making acquisitions? I will compare and contrast those in the next article.

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