On July 20, Chevron announced its agreement to acquire Houston-based energy company, Noble Energy in a press release.
The total value of the agreement is $13 billion.
Chevron CEO shared in the release that “This is a cost-effective opportunity for Chevron to acquire additional proved reserves and resources. Noble Energy’s multi-asset, high-quality portfolio will enhance geographic diversity, increase capital flexibility, and improve our ability to generate strong cash flow. These assets play to Chevron’s operational strengths, and the transaction underscores our commitment to capital discipline. We look forward to welcoming the Noble Energy team and shareholders to bring together the best of our organizations.”
This is considered the first major merger amid crisis surrounding oil price drops due to the coronavirus pandemic.