With the bidding war for Anadarko continues heating up, HCS Energy Consulting has identified a number of interesting transaction metrics as well as the impacts of the bids on the potential suitors. If we compare the two bids, Chevron’s initial offer was 6.5 times Anadarko’s 2018 earnings before interest, tax and depreciation (EBITDA) and Oxy initial offer was 7.3 times EBITDA. Aside from the difference in valuation, we compared these metrics to the November 2018 Cimarex (XEC) announcement to buy Resolute Energy Corp (pure play Permian-Delaware producer) with operations in Reeves County, Texas for 9.4 times its EBITDA and Chesapeake (CHK) announcement to buy Wildhorse Resource Development Corp (pure play oil focused Eagleford producer) for 5.5 times EBITDA. With the Anadarko valuations falling between the Permian and Eagleford pure play acquisitions, the implication is that the international operations are more valuable than the Eagleford oil fields but still less valuable than the Permian-Delaware oil fields since the Anadarko acreage and the Resolute acreage are in adjacent counties in Texas. What do you think ?
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