Anadarko Confirms Receipt of Proposal From Occidental

The transcript discusses the bidding war between Chevron and Occidental for Anadarko, highlighting the strategic fit, market expectations, and financial implications. Chevron's larger size and financial flexibility contrast with Occidental's need to sell assets to finance the deal. The Permian Basin's growth potential is a key factor, with both companies having ambitious plans. Analysts note the similar industrial logic of both bids, while Occidental emphasizes its technical expertise. The financial risks, including Occidental's potential LNG projects, are also explored.

What is the breakup fee that Anadarko has to pay if they do not proceed with the deal with Chevron?

• $500 million

• $1 billion or so

• $2 billion

• $750 million

How has the market reacted to the news of the Chevron deal?

• Anadarko's share price has dropped

• Anadarko's share price is up

• No change in share price

• Market is uncertain

What are the expectations regarding the bidding war for Anadarko?

• It will end quickly

• It could run for some time

• There will be no bidding war

• Chevron will withdraw

What is one of the main reasons Occidental is interested in acquiring Anadarko?

• To eliminate competition

• To consolidate ownership in the Permian Basin

• To increase their debt

• To sell off assets

What challenges does Occidental face in pursuing the deal with Anadarko?

• Lack of technical expertise

• Need to sell assets to finance the deal

• Strong competition from Exxon

• No challenges at all