Chevron Corp., whose buyout of Anadarko Petroleum Corp. was scuttled last year, now is said to be facing obstacles to take over Noble Energy Inc.
The San Ramon, CA-based major in July clinched a definitive agreement to acquire Houston super independent Noble in an all-stock transaction worth an estimated $5 billion that carries a total enterprise value, including debt, of $13 billion. Chevron had agreed in 2019 to combine with Anadarko, but Occidental Petroleum Corp. scuttled that deal with a $57 billion offer.
Now the Noble deal apparently is facing pushback from New York City-based Elliott Management Corp., a hedge fund run by Paul Singer.
Elliott took an undisclosed stake in Noble after the Chevron deal was announced, according to a filing with the Federal Trade Commission (FTC). Elliott, however, told NGI it had no comment. According to the FTC filing, Elliott was granted early termination under the Hart-Scott-Rodino Act, a requirement when shares are bought above a specific threshold and when the investor seeks to discuss strategy or management.
Bloomberg initially reported that Elliott “believes the company is better positioned to benefit from a recovery in oil prices on a standalone basis…”
When prices recover, Elliott also indicated Noble should consider selling its substantial natural gas-rich portfolio in the Mediterranean.
Noble’s operations offshore Israel include the 22 Tcf Leviathan project, whose first phase includes four subsea wells, each capable of flowing more than 300 MMcf/d. Proved reserves are estimated at 3.3 Tcf net.
Noble also is a leading operator in Colorado’s Denver-Julesburg Basin. In addition, it has around 92,000 acres in the Permian Basin of West Texas and a midstream business in the Eagle Ford Shale.
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