Chevron-Anadarko Deal Will Shake Up US Upstream

  • Chevron Corporation’s deal to acquire Anadarko Petroleum Corporation will shake up the U.S. upstream sector.

Chevron Corporation’s deal to acquire Anadarko Petroleum Corporation will shake up the U.S. upstream sector, creating a company that rivals ExxonMobil domestically.

That’s what Jonathan Markham, upstream oil and gas analyst at GlobalData, said in an emailed statement sent to Rigzone on Friday.

“The combined portfolios of Chevron and Anadarko will make Chevron the leading producer in the United States, with forecast production of over 1.6 million barrels of oil equivalent per day (MMboepd) in 2019,” Markham said in the statement.

“Major contributors will be shale plays and deep/ultra-deepwater fields. Chevron is expected to become the single largest producer in the United States in both these areas, where we have forecast that production will be over 1.1 MMboepd from shale and nearly 0.35 MMboepd from deep/ultra-deepwater in 2019,” he added.

“The deal strengthens Chevron’s position in the Permian Basin, which will provide over half of the shale production, and gives the company access to significant acreage in the DJ Basin, which will provide around a quarter of the shale production,” Markham continued.

In a research note commenting on the deal, Jefferies Equity Analyst Jason Gammel said Jefferies believes the acquisition “will be accretive on most significant metrics almost immediately”.

“Integrated oil investors seldom like acquisitions of corporate entities, but the strategic fit and accretive nature of this transaction should make it more palatable,” Gammel stated in the note.

Staff Cuts?

In a company statement released last week, Chevron Chairman and CEO Michael Wirth said the Anadarko transaction will unlock “significant value for shareholders, generating anticipated annual run-rate synergies of approximately $2 billion”.

When asked by Rigzone if the acquisition would result in any staff cuts, Kent Robertson, Chevron’s manager of global external affairs, replied with the following statement:

“Anadarko has talented employees who will strengthen our workforce. Until the transaction closes, it’s business as usual, and both Chevron and Anadarko will operate as separate companies”.

Chevron has more than 45,000 employees, according to its website. Anadarko employs over 4,500 workers, according to its website.


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