ChevronTexaco Corp. has announced its agreement to purchase natural gas and crude oil exploration and production company Unocal Corp., for a stock and cash offering of $18 billion, including net debt.
The transaction is structured at 75% stock and 25% cash based on the $62 per share closing price of ChevronTexaco stock on April 1. The acquisition is subject to approvals by Unocal shareholders and antitrust agencies.
ChevronTexaco expects oil-equivalent production from the combined companies to average about 3 million barrels per day in 2006.
“Unocal is a unique independent with supermajor assets that are an excellent fit with our existing portfolio and our long term strategies—to grow profitably in core upstream areas, build new legacy positions and commercialize our large underdeveloped natural gas resource base,” said ChevronTexaco chairman & CEO Dave O’Reilly.