In a surprise energy mega-deal, Chevron said Friday it plans to buy Anadarko Petroleum for $33 billion in cash and stock.
Chevron said it will pay $65 a share to Anadarko shareholders, who will receive 0.3869 a share of Chevron and $16.25 in cash for each Anadarko share.
The total enterprise value of the transaction is $50 billion.
Shares of Anakdarko surged at the opening bell on Friday following the announcement, jumping 33.5% to $62.48 on the New York Stock Exchange. Shares of Chevron went in the opposite direction, falling more than 4% at the open, or $5.56, to $120.43.
The deal comes amid a rebound in global oil prices, fuelled in large part by bets among investors that OPEC supply cuts, sanctions on Iran and Venezuela and escalating military tensions in Libya will continue to support markets.