April 12 (UPI) -- Chevron is buying Anadarko Petroleum Corp. in a stock and cash deal worth $33 billion, the companies announced Friday.
The mega deal expands Chevron's portfolio to include greater shale development, offshore drilling and natural gas resource basins, the company said in a statement.
The deal, which should give Chevron a boost in the shale oil and natural gas industries, creates a 75-mile-wide corridor in the Delaware Basin in West Texas and deepwater drilling in the Gulf of Mexico.
The $65 share price puts a 37 percent premium on Anadarko stock, based on Thursday's closing price.
Anadarko shareholders will receive $16.25 in cash per share, plus nearly a half-share of Chevron stock for each Anadarko share they own. The total enterprise value of the deal is $50 billion, the companies said.
Anadarko CEO and Chairman Al Walker will remain in the roles after the transaction closes later this year.