Chevron Gets Noble

Merely three weeks later, another record-setting energy deal

Energy acquisitions are more than just the flavor of the month—they’re a direct consequence of a health crisis impacting the economics of the shale oil and gas industry. Chevron announced Monday it would acquire Noble Energy (NBL) for $5 billion. It’s the biggest energy deal since the Covid-19 pandemic decimated the oil industry…something you might remember us saying merely three weeks ago about two electrical energy companies when Wesco merged with Anixter.

Not to mention Berkshire-Hathaway purchasing most of Dominion Energy’s assets last week for roughly $8 billion.

Noble shareholders will receive Chevron stock in this all-stock transaction. Chevron shares traded in the red on Monday following the news, dipping as much as 2.7% in the morning.

“America’s shale oil and gas industry has been hit hard during the pandemic. Demand has tumbled as people stopped traveling and commuting,” according to CNN Business. “And energy prices fell as an ill-timed global oil standoff temporarily increased supply while people were using less oil.”

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