They're just going, 'If there's ever been a time to buy, it's now. "They did have above-average leverage, but no imminent debt termouts or anything. Find the latest news headlines from Chevron Corporation Common Stock (CVX) at Nasdaq.com. Breaking news headlines about Chevron, linking to 1,000s of sources around the world, on NewsNow: the one-stop shop for breaking news "This is one of the worst asset fits I've ever seen," KeyBanc analyst Leo Mariani said, pointing to Noble's assets in the DJ Basin and Eagle Ford Shale in particular. Innovation powers our performance.© 2001 – 2020 Chevron Corporation. It's a brutal investment environment. The rather cheap price tag, on the other hand, could make the move more than worthwhile for Chevron.Analysts like Chevron's price tag for Noble Energy, question asset fitEssential Energy Insights - June 11, 2020Essential Energy Insights - May 28, 2020The potential for future problems in the DJ Basin due to increasingly vocal environmental groups in Colorado could have helped push Noble over the edge.That comment drew no objection from observers, who noted that independent producers find themselves in a painful situation.During a call on July 20, Wirth touted the "complementary nature of Noble Energy's core assets in the U.S.," citing the Permian and DJ basins as two regions where Noble's holdings are especially valuable.Essential Energy Insights - May 14, 2020Deep Dive on Oil & Gas for Financial InstitutionsWhile analysts agreed that Noble's Permian assets could hold value for Chevron, at least a couple questioned the rest of Wirth's assertion. Energy that is affordable, reliable and ever-cleaner.We believe in the power of humanity to solve any challenge, to overcome any obstacle, and to find responsible solutions that work for all of us.Our strong results come from empowering our people.We have exciting capital projects that use innovative technology designed to provide decades of energy. Content Latest Headlines Blog Research Videos Podcasts Topics Media Center . They can't do what they want to do, so this is probably a better way to go," Mariani said. ""I don't think the assets are a particularly logical fit, but the deal price is very attractive — half of our prior $20 fair value estimate for Noble shares," Meats said. All rights reserved.We strive to enable human progress in a sustainable manner to serve the world’s growing population and create a better future.We’re working together to provide energy that drives human progress.Chevron has always put people at the center of the energy conversation. "I'm guessing [Noble] management has a pessimistic outlook on commodity prices and/or fracking rights in Colorado," Meats said.While the deal seems to make sense from Chevron's perspective, the motivation for Noble Energy to sell out raised a few more questions.
Our board and management team are unanimous that this transaction is in the best interest of our company and all Noble Energy shareholders," Noble Chairman and CEO David Stover said in a news release announcing the deal. "So I think the motivation is just taking advantage of the opportunity to get incremental reserves at a very low price. ... Chevron's $5 bln deal for Noble ends deal drought, sets price benchmark. "I'm surprised they were willing to sell," Meats said. Based … The company suspended all completion activity and cut its drilling activity to a single rig in the DJ Basin.Morningstar analyst David Meats struck a similar tone, saying the price tag made more sense from Chevron's perspective than the asset mix.Chevron Corp. CEO Michael Wirth called the assets of Noble Energy Inc. "complementary to Chevron's global portfolio" when he announced Chevron's $13 billion takeover of the independent producer, but not all analysts agree that Noble's holdings are a good fit. "In Colorado, the DJ adds a large, contiguous position with no leasehold drilling requirements where Noble Energy has been a very successful operator. Because we understand that the well … ""Nobody wants energy right now," Mariani said. "We generated a verification code for youBoth Chevron and Noble executives said the deal provided a value upgrade for Noble investors. "The Permian is a targeted bolt-on to our premier existing position, adding 92,000 net acres in the core of the Delaware Basin," the CEO said.