=Anadarko Petroleum (APC) to be acquired by Chevron (CVX) for $65/share

Anadarko Petroleum to be acquired by Chevron (CVX) in a stock and cash transaction valued at $33 bln, or $65/share

Based on Chevron's closing price on April 11, 2019 and under the terms of the agreement, Anadarko shareholders will receive 0.3869 shares of Chevron and $16.25 in cash for each Anadarko share. The total enterprise value of the transaction is $50 billion. In aggregate, upon closing of the transaction, Chevron will issue approximately 200 million shares of stock and pay approximately $8 billion in cash.

• The transaction is expected to achieve run-rate cost synergies of $1 billion before tax and capital spending reductions of $1 billion within a year of closing.
• Chevron expects the transaction to be accretive to free cash flow and earnings per share one year after closing, at $60 Brent.
• Chevron plans to divest $15 to $20 billion of assets between 2020 and 2022. The proceeds will be used to further reduce debt and return additional cash to shareholders.
• As a result of higher expected free cash flow, Chevron plans to increase its share repurchase rate from $4 billion to $5 billion per year upon closing the transaction.