$ 5 billion oil patch, Chevron Noble Stir

$ 5 billion oil patch, Chevron Noble Stir

The Chevron pandemic shook the energy sector, with Chevron buying Noble Energy in its first major contract for $ 5 billion.

NEW YORK (AP) - Chevron bought Noble Energy for $ 5 billion in its first major deal as the coronavirus pandemic rocked the energy sector.

Chevron has been buying assets since last year and crude oil prices have fallen more than 30% this year, rising Monday, offering all shares to independent Houston oil and gas drillers.

Based on the Chevron closing price on Friday, Noble Energy shareholders will receive 0.1191 shares of Chevron for each Noble Energy share. But most loans come with an inventory price.

Energy companies are facing huge debts before fuel prices change and rebound everywhere. Noble is no exception.

The deal was worth $ 13 billion in total business, with Chevron borrowing the Nobel.

Last year, when Chevron signed a $ 38 billion deal for Anadarco, even though it was five times larger than Occidental, one of them was chasing a potential target.

Although Occidental's valuable grip on the Permian Basins of Western Texas and New Mexico seemed to be a good match, Chevron said he was in favor of discipline while "winning at any cost".

It was another match at Noble Energy.

With low-cost, cash-generating offshore assets in Israel, the acquisition will bring Chevron proven reserves to strengthen the company's position in the Mediterranean. Nobel's portfolio includes the Permian Basin, Chevron's US Aces and Colorado's DJ Basin.

"Noble Energy's multi-asset, high-quality portfolio enhances geographic diversity, improves access to capital and enhances our ability to generate strong cash flow," said Michael Wirth, President and CEO of Chevron. Emphasizes our commitment to transact capital discipline. "

This year, discipline is a must for any organization in the energy sector.

On Monday, energy services company Halliburton 7 reported a loss of $ 1.7 billion and was better than industry analysts. Revenue did not fall 57%.

Energy demand is rising as economies around the world reopen. U.S. crude oil prices, which fell in the first four months of this year, have been positive since May. It seems that prices may turn positive in July, but prices are rising and the longest positive series in a month is two days.

The world’s largest economy, now with rising COVID-19 cases in America, is now putting the industry in trouble because of layoffs.

Shale drilling pioneer Chesapeake Energy, one of the world’s largest natural gas producers, filed for bankruptcy protection last month.

The stock rose 12% before crude oil prices opened on Monday, again falling to $ 40 a barrel.

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