The state of U.S. shale production is a major factor influencing why a bidding war exists between Chevron (CVX) and Occidental Petroleum (OXY) over Anadarko (APC). Occidental CEO Vicki Hollub stated that they have been making offers to Anadarko for weeks before the Chevron announcement, and “ focused on Anadarko for several years.” For Oxy, the $38 billion acquisition is a growth plan that fits with their relative strengths as a company — major shale player, global operations, and enhanced oil recovery prospects. Anadarko’s domestic U.S. shale assets would be highly complementary.
The pro forma