Chevron Announces $5B Takeover Of Oil And Gas Company

SAN RAMON, CA — San Ramon-based oil and gas company Chevron has bought Noble Energy for $5 billion.

Noble Energy, a Houston oil and gas company, came with $8 billion in debt, according to a news release from Chevron. The $13 billion transaction comes at a time that oil companies have been hit hard by a steep downturn in travel and commuting.

Analysts have called it the biggest oil deal since the beginning of the pandemic, as CNN reported.

“Our strong balance sheet and financial discipline gives us the flexibility to be a buyer of quality assets during these challenging times,” said Chevron Chairman and CEO Michael Wirth in the news release. “This is a cost-effective opportunity for Chevron to acquire additional proved reserves and resources."

The two companies complement each other, Andrew Dittmar, senior M&A analyst at Enverus, told CNN.

The merger should lead to operating cost savings of $300 million within a year of the deal's closing, Chevron said in its news release.

Noble Energy shareholders will receive .1 shares of Chevron for each Noble Energy share held, according to the news release.

Read more about the deal from Chevron and CNN.