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July 20, 2020, 6:37 a.m. EDT

Noble Energy's stock surges after Chevron confirms $5 billion buyout deal

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By Tomi Kilgore

Shares of Noble Energy Inc. /zigman2/quotes/210375673/composite NBL -0.11% surged 8.8% in premarket trading Monday, after Chevron Corp. /zigman2/quotes/205871374/composite CVX -0.51% confirmed an all-stock deal to buy the oil and gas producer for about $5 billion. Including Noble's debt, the deal would be valued at about $13 billion. The deal was earlier reported by The Wall Street Journal . Chevron's stock inched 0.1% lower ahead of the open. Under terms of the deal, Chevron will exchange 0.1191 Chevron shares for each Noble share outstanding. Based on Friday's closing prices would value Noble shares at $10.38, or 7.6% premium. "This is a cost-effective opportunity for Chevron to acquire additional proved reserves and resources," Chevron Chief Executive Michael Wirth said. "Noble Energy's multi-asset, high-quality portfolio will enhance geographic diversity, increase capital flexibility, and improve our ability to generate strong cash flow." Year to date, Noble Energy's stock has tumbled 61.1% through Friday and Chevron shares have shed 27.7%, while the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -0.11% has declined 6.5%.

/zigman2/quotes/210375673/composite
US : U.S.: Nasdaq
$ 8.98
-0.0100 -0.11%
Volume: 3.39M
Sept. 22, 2020 12:24p
P/E Ratio
N/A
Dividend Yield
0.89%
Market Cap
$4.36 billion
Rev. per Employee
$1.91M
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/zigman2/quotes/205871374/composite
US : U.S.: NYSE
$ 75.91
-0.39 -0.51%
Volume: 3.42M
Sept. 22, 2020 12:24p
P/E Ratio
N/A
Dividend Yield
6.79%
Market Cap
$142.48 billion
Rev. per Employee
$3.27M
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/zigman2/quotes/210598065/realtime
US : Dow Jones Global
27,118.23
-29.47 -0.11%
Volume: 192.70M
Sept. 22, 2020 12:24p
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