Chevron has completed its purchase of Noble Energy, which is set to provide the company with proved reserves and attractive undeveloped resources that will enhance its upstream portfolio.
The two companies agreed to the deal in July, with Chevron finalising its $US5 billion ($6.97 billion) acquisition of Noble Energy on Monday.
Noble Energy brings low-capital, cash-generating offshore assets in Israel, strengthening Chevron’s position in the Eastern Mediterranean.
The company also enhances Chevron’s leading United States unconventional position with de-risked acreage in the DJ Basin and 92,000 largely contiguous and adjacent acres in the Permian Basin.
Chevron chairman and chief executive officer Michael Wirth said its strong balance sheet and financial discipling had given the company flexibility to be a buyer of quality assets during challenging times.
“We are pleased to welcome Noble Energy’s employees and shareholders to Chevron. Noble’s high-quality assets complement Chevron’s advantaged upstream portfolio, and the combination is expected to deliver strong financial benefits,” Wirth said.
“With an industry-leading balance sheet and a track record of capital discipline, we believe we’re in a different place than others and can protect the dividend while driving long-term value.”
Wirth added that Noble Energy’s multi-asset, high-quality portfolio would also enhance geographic diversity, increase capital flexibility, and improve Chevron’s ability to generate strong cash flow.
“These assets play to Chevron’s operational strengths, and the transaction underscores our commitment to capital discipline,” he said.
Noble Energy chairman and CEO David Stover said in July that it was a compelling opportunity to join Chevron.
“Over the last few years, we have made significant progress executing our strategic objectives, including driving capital efficiency gains onshore, advancing our offshore conventional gas developments and significantly reducing our cost structure,” Stover said.
“As we looked to build on this positive momentum, the Noble Energy board of directors and management team conducted a thorough process and concluded that this transaction is the best way to maximise value for all Noble Energy shareholders.”