=Anadarko Petroleum (APC) : superior proposal from Occidental Petro (OXY) to acquire company for $76.00 per share

Anadarko Petroleum: Occidental Petroleum (OXY) confirms 'superior proposal' to acquire Anadarko for $76.00 per share in cash & stock

Occidental Petroleum Corporation delivered a letter to the Board of Directors of Anadarko Petroleum setting forth the terms of a superior proposal by Occidental to acquire Anadarko for $76.00 per share, in which Anadarko shareholders would receive $38.00 in cash and 0.6094 shares of Occidental common stock for each share of Anadarko common stock. Occidental's proposal represents a premium of approximately 20% to the value of Anadarko's pending transaction with Chevron (CVX) as of April 23, 2019.

• Occidental believes its proposal is superior both financially and strategically for Anadarko's shareholders, creating a global energy leader with the scale and geographic diversification to drive growth and deliver compelling value and returns to the shareholders of both companies. The combined company will be uniquely positioned to leverage Occidental's demonstrated operational and technical expertise, producing greater anticipated synergies than Anadarko's pending transaction.
• The 50-50 cash and stock transaction is valued at $57 billion, based on Occidental's closing price on April 23, 2019, including the assumption of net debt and book value of non-controlling interest.

Occidental Petro CEO on CNBC discusses bid for Anadarko (APC); note APC agreed to be acquired by Chevron (CVX) two weeks ago

• Anadarko will enhance dividend plus growth strategy
• Most APC assets are in the shale -- OXY has a proven track record in the Permian Basin.
• Been studying APC for two years; first approached them in July 2017; still a friendly engagement.
• CNBC's Faber: Why not look at other shale plays without a fight? No other oppty with this upside potential. There are 10K wells that can be drilled; OXY has much more efficient operations in the Delaware Basin.
• Will now be able to articulate strategy to its own shareholders -- very confident in getting approval from them.
• Half of synergies would come from things they already do for their assets.

Anadarko agreed to receive 0.3869 shares of Chevron (CVX) and $16.25 in cash which amounts to $65/share on April 12.

Occidental offered $38.00 in cash and 0.6094 shares of OXY which amounts to $76/share this morning (the bid has already been diminashed by OXY's falling stock price).

Two weeks ago, APC went with a (less risky) lower bid from a much better capitalized and larger CVX that doesn't need its shareholders to approve the deal while in discussions with OXY.

Premarket: APC +9%, OXY -8%, CVX +0.6%

This week's biggest % winners & losers : April 8 - 12, 19 (wk 15)

The following are this week's top percentage gainers and losers, categorized by sectors (over $300 mln market cap and 100K average daily volume).

This week's top 20 % gainers

• Healthcare: BHVN (58.24 +16.04%), INSP (57.81 +10.94%)
• Consumer Discretionary: ADNT (20.73 +27.1%), NEW (9.96 +27.04%)
• Information Technology: MRVL (23.74 +11.46%)
• Financials: PPDF (5.29 +19.95%), BSMX (8.43 +17.25%), LTS (3.46 +15.72%), CUBI (21.91 +14.06%)
• Energy: APC (61.78 +31.42%), CPG (4.23 +27.79%), STNG (24.07 +23.44%), BTE (2.18 +22.47%), FRO (7.91 +15.14%), PXD (168.32 +11.71%), EURN (9.36 +11.3%)
• Consumer Staples: NBEV (5.48 +14.52%)
• Utilities: PCG (23.08 +19.15%)

This week's top 20 % losers

• Healthcare: FIXX (22.39 -26.2%), DERM (11.67 -19.85%), ICPT (95.21 -18.64%), FLXN (10.51 -17.31%), ADAP (4.31 -15.32%), PRQR (13.09 -14.61%), ANTM (252.85 -13.79%), AERI (41.89 -12.67%), ALLK (37.79 -12.42%), MOH (129.39 -12.19%)
• Materials: SBGL (3.86 -16.09%), AKS (2.51 -14.33%)
• Consumer Discretionary: UXIN (3.26 -19.51%), JCP (1.25 -14.38%), SIG (23.19 -13.63%)
• Information Technology: HOLI (19.49 -14.89%), PAR (22.31 -14.55%)
• Financials: HIIQ (23.85 -12.96%)
• Energy: BPT (21.5 -21.16%)

=Anadarko Petroleum (APC) to be acquired by Chevron (CVX) for $65/share

Anadarko Petroleum to be acquired by Chevron (CVX) in a stock and cash transaction valued at $33 bln, or $65/share

Based on Chevron's closing price on April 11, 2019 and under the terms of the agreement, Anadarko shareholders will receive 0.3869 shares of Chevron and $16.25 in cash for each Anadarko share. The total enterprise value of the transaction is $50 billion. In aggregate, upon closing of the transaction, Chevron will issue approximately 200 million shares of stock and pay approximately $8 billion in cash.

• The transaction is expected to achieve run-rate cost synergies of $1 billion before tax and capital spending reductions of $1 billion within a year of closing.
• Chevron expects the transaction to be accretive to free cash flow and earnings per share one year after closing, at $60 Brent.
• Chevron plans to divest $15 to $20 billion of assets between 2020 and 2022. The proceeds will be used to further reduce debt and return additional cash to shareholders.
• As a result of higher expected free cash flow, Chevron plans to increase its share repurchase rate from $4 billion to $5 billion per year upon closing the transaction.

=Long trade : APC +8% (9/17)

Anadarko Petroleum announces $2.5 bln share-repurchase program; co also reaffirms the guidance it had previously provided for the deepwater Gulf of Mexico, DJ and Delaware basin assets

• "At the current share price, this represents ~10% of the co's outstanding common shares, and we will initially target $1 billion of share repurchases prior to year-end 2017. "Separately, we want to highlight and reaffirm the guidance we have previously provided for the deepwater Gulf of Mexico (GOM), DJ and Delaware basin assets."
• "In the deepwater GOM, we continue to expect average production rates approaching 130,000 barrels of oil per day (BOPD) for the full-year 2017. In the Delaware and DJ basins, we are on track to deliver our combined projected exit rate of ~150,000 BOPD in 2017. Our ability to continue to meet previous targets is indicative of the quality of the company's assets and the efforts of our organization to deliver strong performance, despite challenges from recent storms."
• "Going forward, we will continue to demonstrate financial discipline with a focus on returns. Our 2018 upstream investment plan is anticipated to produce substantial free cash flow, assuming an average oil price of $50 per barrel,while total capital spending, including midstream investments, should be approximately break-even to discretionary cash flow from operations."