Shares of Chevron Corp. /zigman2/quotes/205871374/lastsale CVX -2.41% shot up 3.1% in premarket trade Thursday, after the oil giant said it would not raise its bid to buy Anadarko Petroleum Corp. , and expects Anadarko to terminate the merger deal. "Winning in any environment doesn't mean winning at any cost," said Chevron Chief Executive Michael Wirth. "Cost and capital discipline always matter, and we will not dilute our returns or erode value for our shareholders for the sake of doing a deal." Chevron's announcement comes after Occidental Petroleum Corp.'s /zigman2/quotes/207018272/lastsale OXY -9.63% recently revised its rival higher bid for Anadarko to include more cash. Anadarko's stock fell 2.0% and Occidental's stock fell 3.9% ahead of the open. Chevron said if the deal is terminated, Anadarko will be required to pay Chevron a termination fee of $1 billion. In addition, Chevron will increase its stock repurchase program by 25% to $5 billion a year. Chevron's stock has lost 8.7% over the past 12 months, while Occidental shares have tumbled 26.9% and the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -3.06% has gained 5.8%.