Summary
After its unsuccessful buyout attempt of Anadarko (APC) last year solidified Chevron's (CVX) reputation for capital discipline, its recent decision to acquire Noble Energy (NBL) highlights the company's strategic opportunism. Using its strong balance sheet and relative share outperformance as assets, CVX plans to buy NBL in an all-stock transaction that will enhance its Permian position, provide a unique growth opportunity in the Eastern Mediterranean, and drive free cash flow growth while preserving current liquidity. Most importantly, the deal should help alleviate investor concerns about CVX's ability to