Stirring in the oil patch, Chevron buys Noble for $5 billion

FILE - This Oct. 8, 2019, file photo the logo for Chevron appears above a trading post on the floor of the New York Stock Exchange. Chevron Corp. says it will acquire Noble Energy in an all-stock deal valued at $5 billion. The San Ramon, California-based Chevron has been shopping for an acquisition for months as oil prices have tanked due to the coronavirus outbreak. (AP Photo/Richard Drew, File)(Richard Drew | AP)

Published: Jul. 20, 2020 at 3:34 PM CDT

NEW YORK (AP) — Chevron will take over Noble Energy for $5 billion in the first big deal announced since the coronavirus pandemic shook the energy sector.

Chevron has been shopping for assets since last year and with crude prices down more than 30% this year, it jumped Monday with its all-stock offering for the independent Houston oil and gas driller.

Energy companies had been taking on enormous debt even before the pandemic with energy prices bouncing all over the place, and Noble is no exception.

The total enterprise value of the deal is $13 billion, with Chevron assuming Noble’s debt.