By James Herron
The deal values Noble at $10.38 a share, or 0.1191 of a Chevron share, equivalent to a 7.5% premium over Friday’s closing price. The total enterprise value, including debt, is $13 billion. Dow Jones was first to report the transaction.
The purchase grows Chevron’s presence in the Permian Basin, once the heartland of the U.S. shale boom but now experiencing a sharp reduction in drilling. It will increase the company’s proved reserves, as reported at the end of 2019, by about 18%.
The transaction has been approved by the boards of both companies and is expected to close in the fourth quarter, subject to regulatory approvals.
Last year, Chevron lost a takeover battle for Anadarko Petroleum Corp. Occidental Petroleum Corp. won with a higher bid, but has subsequently struggled with the large debt pile resulting from the deal.