Chevron's $5 Billion Covid Bargain May Stand Alone
The oil major's past discipline has made it one of the few companies capable of opportunistically scooping up deals like Noble Energy in the middle of a pandemic.
Chevron’s bargain hunt may not signal an industry deal free-for-all.
Photographer: Andrew Harrer/BloombergPatience is a virtue in M&A, especially in the rocky oil market.
Chevron Corp. announced Monday that it was acquiring Noble Energy Inc. in an all-stock deal with an equity value of about $5 billion. The purchase is something of a consolation prize after Chevron lost out to Occidental Petroleum Corp. in the much larger takeover of Anadarko Petroleum Corp. last year. One look at Occidental’s stock price, though, and it’s clear that company is in much greater need of consoling. Chevron’s bid for Anadarko was somewhat opportunistic, coming after a dip in the target’s stock price, but the company had the good sense to walk away when a bidding war risked making the deal less of an opportunity and more of an albatross. “Winning in any environment doesn’t mean winning at any cost,” Chevron CEO Mike Wirth said at the time. With Occidental now sidelined and drowning in debt, Chevron is seizing on a deal at truly bargain prices.