Remarks
Smaller Deals Are Smarter Deals in Today’s Energy Business
Chevron’s acquisition of Noble makes sense, while investors have punished Occidental for buying Anadarko.
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The smaller takeover is usually the smarter one, especially in the embattled oil and gas industry.
Chevron Corp. announced on July 20 that it was acquiring Noble Energy Inc. for about $5 billion. It was the first major takeover launched in the sector since the coronavirus pandemic triggered a severe erosion in demand and unprecedented volatility in crude prices. The deal value swells to about $13 billion once Noble’s $8 billion or so in net debt is included.