Yahoo Finance Chevron Australia Inks Acquisition Deal With Puma Energy
Chevron Australia Downstream Pty Ltd, a wholly-owned affiliate of Chevron Corporation CVX, signed a conditional share sale agreement to acquire Australia’s Puma Energy Holdings Pty Ltd in an all-stock deal worth $288 million.
Rationale Behind the Deal
Chevron's acquisition deal comes four years after it exited Australia's retail fuel market by selling its stake in Caltex in a $4.62 billion transaction. The transaction will help its Australian business to acquire a stable network of petrol stations and fuel distribution ventures, together with storage and import terminals in the country and provide a base for sustainable earnings growth. Chevron’s executive vice president for Downstream & Chemicals, Mark Nelson, feels that this deal will build on the company’s strong history of partnership in Australia and its global experience in fuels and convenience marketing and supply.
The transaction is expected to close by the second quarter of 2020 and is dependent on pending approvals and customary conditions.
Chevron Corporation is one of the largest publicly traded oil and gas companies in the world, based on proved reserves. It is engaged in oil and gas exploration and production, refining and marketing of petroleum products, manufacturing of chemicals and other energy-related businesses. The company’s key assets are focused on the United States, Australia, most of South America, and eastern and central Asia.
Chevron Corporation Price
Chevron Corporation price | Chevron Corporation Quote
What’s In It for Puma Energy?
With this move, Puma Energy will be able to use the proceeds of the sale to pay back its debt, thereby maintain its capital structure policy.
This move is in line with Puma Energy’s efforts to optimise global portfolio and deleverage balance sheet by the end of 2020.
Puma Energy (Australia) Holdings Pty Ltd and its subsidiaries hold assets including a network of company-owned and retailer-owned service stations in Australia, a commercial and industrial fuels business, owned or leased seaboard import terminals and fuel distribution depots.
Puma Energy’s bitumen business in Australia will not be included in this deal and it will continue to invest to boost services to its bitumen buyers.
Zacks Rank & Key Picks
Chevron currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the energy space are Phillips 66 PSX, Marathon Petroleum Corp. MPC and Valero Energy Corp. VLO, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.6% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Valero Energy Corporation (VLO) : Free Stock Analysis Report
Marathon Petroleum Corporation (MPC) : Free Stock Analysis Report
Phillips 66 (PSX) : Free Stock Analysis Report
Chevron Corporation (CVX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
