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Chevron buying Anadarko for $33 billion
Companies have long histories in Alaska; Chevron still has working interests on the Slope; Anadarko shed Alaska interests last year Kristen Nelson Petroleum News
Chevron announced an agreement April 12 to acquire Anadarko for $33 billion, a move Chevron said would significantly enhance its upstream portfolio “and further strengthen its leading positions in large, attractive shale, deepwater and natural gas resource basins.”
This merger doesn’t impact Alaska, since Anadarko sold its western North Slope interests, including its working interest in the Colville River unit, to ConocoPhillips Alaska last year, and Chevron has just modest nonoperating interests in the state.
At one time Anadarko had extensive North Slope holdings. In addition to those it held in partnership with ConocoPhillips (formerly ARCO), Anadarko had a large Arctic Slope Native Corp. lease position but had dropped everything except the nonoperating interests it held with ConocoPhillips on the western North Slope.
Anadarko’s exit from its western North Slope partnership with ConocoPhillips left it without lease acreage in the state.
Anadarko was also active in Cook Inlet at one time but had also dropped that acreage.
Chevron, Unocal Chevron was the major Cook Inlet producer after it acquired Union Oil Company of California in 2005 but sold its Cook Inlet interests to Hilcorp in 2011. Chevron retained its nonoperating interests on the North Slope.
Current Chevron North Slope interests come from the company’s acquisition of Union Oil, which held a working interest of 4.95% at the Kuparuk River unit, and also from positions it held at Duck Island and Prudhoe Bay, some of which date from the company’s merger with Texaco in 2000. At one time Chevron also held a 25% interest in the Point Thomson unit, as well as Foothills acreage.
Permian, Gulf, LNG “The combination of Anadarko’s premier, high-quality assets with our advantaged portfolio strengthens our leading position in the Permian, builds on our deepwater Gulf of Mexico capabilities and will grow our LNG business,” said Chevron Chairman and CEO Michael Wirth.
Chevron said the combination would “create a 75-mile-wide corridor across the most attractive acreage in the Delaware basin, extending Chevron’s leading position as a producer in the Permian.” In the deepwater Gulf of Mexico, where Chevron “is already a leading producer,” the combination will enhance the company’s position, Chevron said, “and extend its deepwater infrastructure network.”
And “Chevron will gain another world-class resource base in Mozambique to support growing LNG demand.”
Chevron said the acquisition is based on 75% stock and 25% cash. The transaction has been approved by the boards of both companies and is expected to close in the second half of the year, subject to Anadarko shareholder approval, regulatory approval and customary closing conditions.
Wirth will continue to lead the company which will remain headquartered in San Ramon, California.
One of big 4 The Associated Press cites data from Wood Mackenzie showing that the acquisition of Anadarko makes Chevron one of the four largest publicly traded oil companies.
ExxonMobil had the most 2018 production of the four, with 3.834 million barrels of oil equivalent per day, followed by combined production from Chevron and Anadarko at 3.639 million boe, BP at 3.633 million boe and Royal Dutch Shell at 3.604 million boe.
The production forecast for 2019 puts BP at the top with 4.003 million boe per day, followed by Chevron/Anadarko at 3.913 million boe, Shell at 3.888 million boe and ExxonMobil at 3.884 million boe.
2018 revenue and profit show: BP at $303.7 billion in revenue, $12.7 billion in profit; Shell at $295.2 billion in revenue, $21.4 billion in profit; ExxonMobil at $290.2 billion in revenue, $20.8 billion in profit; and Chevron/Anadarko at $179.7 billion in revenue, $15.4 billion in profit.
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