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Anadarko Petroleum Corp. is “preparing to endorse†Occidental Petroleum Corp.’s $38 billion takeover offer, the Financial Times reported, a move that threatens to scupper a previously agreed deal with Chevron Corp.
Anadarko’s board of directors determined that the cash and stock offer from Occidental is superior to Chevron’s, according to the FT report, which cited people it didn’t identify. Chevron’s offer was valued at $33 billion when the agreement was announced April 12. Reuters reported earlier Anadarko would pursue talks with Occidental, citing sources familiar with the matter who it didn’t identify.
The move unofficially opens a bidding war for Anadarko in what would be the largest deal in the oil and gas sector in at least four years. Should Anadarko’s board decide Occidental’s bid may be the better of the two, Chevron has four days to come back with a counter offer, according to Morgan Stanley. If Chevron ups its price, Occidental then has three days to respond with a new proposal.
Anadarko and Occidental could not be reached for comment outside normal business hours. Chevron referred questions to Anadarko.
Anadarko is one of the largest independent U.S. oil producers and has been the subject of merger speculation for some time. While its operations span three continents, the real prize for Chevron or Occidental would be its American assets — specifically those in the prolific Permian Basin of West Texas and New Mexico, the world’s largest oil patch and a prime candidate for consolidation among industry players.
Occidental’s offer valued Anadarko shares at $76 in a 50-50 cash and stock split. That compares with Chevron’s agreement to buy The Woodlands, Texas-based Anadarko for $65 a share, with 75 percent coming from shares and 25 percent cash.
Anadarko’s shares have traded above the value of Chevron’s offer almost every day since the deal was announced. The gap stood at $11.24 at the close on Friday. That’s creating pressure from investors. New York-based investment firm D.E. Shaw has urged the company to run an open sale process, people familiar with the matter said this week.
Source: Bloomberg
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Valaris Limited announced new contracts awarded subsequent to issuing the Company’s most recent fleet status report on February 21, 2023. Three-year contract with Petrobras for drillship VALARIS DS-8. The rig will be reactivated for this contract. The total contract value is approximately $500 million, including a $30 million mobilization fee. 100-day contract with a TotalEnergies affiliate for drillship VALARIS DS-12. The contract is expected to commence in second quarter 2023. 70-day contract with Beach Energy offshore New Zealand for heavy duty modern jackup VALARIS 107. The contract is expected to commence in third quarter 2023. The total contract value is approximately $26 million. President and Chief Executive Officer Anton Dibowitz said, “We are particularly pleased to have secured the award for preservation stacked drillship VALARIS DS-8, for a contract that is expected to generate a meaningful return over the firm contract term, and we remain focused on exercising our operational leverage in a disciplined manner. This most recent award represents the sixth contract awarded to one of our high-quality stacked floaters since mid-2021, and speaks volumes about our demonstrated track record of project execution when reactivating rigs.” Dibowitz added, “Following the reactivation of VALARIS DS-17 and DS-8, we will have ten floaters working across the golden triangle, including four drillships in Brazil, a market where we expect to see continued growth over the next several years.” Updated Guidance As a result of the contract awarded to VALARIS DS-8, which will require the rig to be reactivated from preservation stack, we are updating our first quarter 2023 and full-year 2023 guidance provided on our fourth quarter 2022 conference call on February 21, 2023. First Quarter 2023 Contract drilling expense is expected to increase by approximately $5 million to $385 million to $395 million. Adjusted EBITDA is expected to decrease by approximately $5 million to negative $5 million to breakeven. Adjusted EBITDAR, which adds back one-time reactivation expense, is expected to be $25 million to $30 million, unchanged from the guidance provided on our fourth quarter 2022 conference call. Full-Year 2023 Revenues are anticipated to be $1.8 billion to $1.9 billion, unchanged from the guidance provided on our fourth quarter 2022 conference call. Contract drilling expense is expected to increase by approximately $60 million to $1.49 billion to $1.59 billion. Adjusted EBITDA is expected to decrease by approximately $60 million to $180 million to $220 million. Adjusted EBITDAR, which adds back one-time reactivation expense, is expected to be $280 million to $320 million, unchanged from the guidance provided on our fourth quarter 2022 conference call. Capital expenditures are expected to increase by $60 million to $320 million to $360 million. Source: Valaris Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here
Seadrill Limited announced that the West Neptune has executed approximately six months of term extensions with LLOG Exploration Offshore, L.L.C in the US Gulf of Mexico. The extensions will commence in direct continuation of the existing term, and will keep the rig busy until Q3 2024, furthering Seadrill and LLOG’s long-term association. Total contract value for the extension is approximately $79 million. Source: Seadrill Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here
Semisub rig owner Dolphin Drilling has inked a new contract with Peak Petroleum in Nigeria for its 1974-built Blackford Dolphin. The firm contract, which follows the letter of award in January, gives the Euronext Growth-listed owner of three rigs the potential to extend the unit’s backlog by a minimum of 120 days and up to 485 days. The deal adds to and will be a direct continuation of the previously announced 12-month contract with General Hydrocarbon Limited (GHL). Øystein Stray Spetalen-backed company said the effective dayrate associated with the minimum firm period of the contract is $325,000, including the mobilisation fee. “The final award of the contract for Blackford Dolphin shows the opportunities in Nigeria at a strong dayrate, in addition to building on the backlog for the rig. It also underlines the attractiveness of our assets, and we look forward to returning to revenue-generating operations in 2023,” noted Bjørnar Iversen, CEO of Dolphin Drilling. Source: Dolphin Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here
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