In a much expected move, oil supermajor Chevron said this morning it will not counter the higher bid made for Anadarko Petroleum by Occidental Petroleum, contrent to walk away from the deal with a $1 billion breakup fee, Kallanish Energy reports.
“Winning in any environment doesn’t mean winning at any cost. Cost and capital discipline always matter, and we will not dilute our returns or erode value for our shareholders for the sake of doing a deal,” said Chevron’s chairman and CEO Michael Wirth.
“Our advantaged portfolio is driving robust production and cash flow growth, higher investment returns and lower execution risk. We are well positioned to deliver superior value creation for our shareholders.”
Consistent with Chevron’s commitment to shareholder returns, the company plans to increase its share repurchase rate by 25%, to $5 billion per year.
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