Chevron (CVX) Acquisition of Noble Energy (NBL)
Chevron has agreed to buy Noble Energy for US$5 billion in stock swap with '0.1191' Chevron shares exchanged for each Noble share outstanding. According to Chevron Chief Executive Michael Wirth,
Noble Energy's multi-asset, high-quality portfolio will enhance geographic diversity, increase capital flexibility, and improve our ability to generate strong cash flow.
There is a lot of optimism surrounding this deal which in my opinion is slightly misplaced. There are many reasons that support a rather cautious approach towards building further long positions in Chevron just based on