Oil shares jump after Chevron buys Anadarko and merger fever hits oil patch

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Chevron's $33 billion acquisition of Anadarko sparks speculation the oil patch will see a new wave of consolidation.

Chevron's $33 billion acquisition of Anadarko sparked speculation the oil patch will see a new wave of consolidation as major players look to build scale and lower costs in the shale sector.

Anadarko stock rose 31% after Chevron offered $60.95 per share in stock and cash. The deal gives the second biggest U.S. energy company a boost in shale oil production as well as natural gas and offshore deep-water. Kilduff said higher oil prices have made deals more attractive, but they're not so high as to discourage buyers."We're in a medium price environment. If you look at the futures curve out to 2028, the forward curve can support these deals and these valuations," he said. The price of West Texas Intermediate was at $64.50, up 1.5% Friday.

"You can imagine every banker in the world is calling these companies," said one banker. He noted that potential targets just got more expensive, and it's not clear that buyers will necessarily bite. Bankers have been expecting not only a wave of mergers among public names, but also among private shale plays.

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USFunds And oil refiners will celebrate by raising the price of gasoline for everyone, in order to record a 6th record-breaking profit year in a row

Get the jump on what this means for the average American with no oil stock. I have a feeling nothing will be trickling our way.

APC turns down $70. per share from OXY for a $65 from CVX? WTF? as a shareholder why dont we get a say?

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Oil shares jump after Chevron buys Andarko and merger fever hits oil patchChevron's $33 billion acquisition of Anadarko sparked speculation the oil patch will see a new wave of consolidation as major players look to build scale and lower costs in the shale sector.
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