However, activist investor Elliott Management acquired shares of Noble in an effort to torpedo Chevron’s $5 billion proposed acquisition deal. Elliott’s CEO Paul Singer believes Noble is worth more and the energy company must delay the deal until oil prices recover.
For Devon and WPX, 2020 has proved to be a dismal year for company profits when compared to 2008. Devon’s market value in 2008 was just north of $50 billion while WPX had a valuation of nearly $8 billion.
Compared to larger energy firms like Chevron, Noble and WPX are considered to be smaller, mid-sized oil and gas producers with the majority of their reserves coming from the Permian Basin throughout West Texas and New Mexico.
Currently, U.S. benchmark oil prices are hovering at $40 per barrel, which is unsustainable for oil producers hoping to maintain a healthy bottom line.
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