$1 billion breakup fee makes easy payday for Chevron shareholders
By Richard Rostad, analyst, Oil & Gas 360

Chevron (ticker: CVX) announced today it will concede to Occidental (ticker: OXY) in the bidding war for Anadarko (ticker: APC).

While Chevron could theoretically outbid Oxy in its quest for Anadarko, Chairman and CEO Michael Wirth decided the price of doing so was too high.

As Wirth put it, “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.” Wirth was referring to the company’s slogan.

Instead Chevron will receive the deal’s $1 billion breakup fee, a fee that Oxy w...

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