Houston-based Occidental Petroleum said Wednesday it is making “a superior proposal” of $76 per share to acquire Anadarko Petroleum compared to Chevron’s recent proposal of $65 per share. “Occidental’s proposal represents a premium of approximately 20 percent to the value of Anadarko’s pending transaction,” the company said. Oil & Gas Journal said the proposed transaction would enhance Occidental’s position as the largest producer in the Permian Basin with 533,000 boed of production. Vicki Hollub, Occidential CEO and president, told CNBC, “We are the right acquirer for Anadarko Petroleum because we can get the most out of the shale. Seventy-five percent of the value of Anadarko is in the shale, and we’re the best company to develop the shale. We have a proven track record in the Permian. We’re right now the best operator in the Permian.”
Bloomberg said the Occidental offer is $38 billion compared to Chevron’s $33 billion. The acquisition would be the largest ever for Occidental and would combine two second-tier producers as opposed to Chevron’s bid to create another so-called ultramajor to rival ExxonMobil. Rob Thummel of Tortoise Capital Advisors told Bloomberg, “This highlights the potential value of the Permian… Chevron will fight because acreage in Permian fits so well with its existing acreage, increasing the potential for better-than-expected operational synergies.”