Aspects of ChevronTexaco's Proposed Acquisition of Unocal

Background

On April 5, 2005, the Wall Street Journal reported that ChevronTexaco Corporation had agreed to buy Unocal Corporation for about $16.8 billion of cash and stock.   The last oil and natural gas sector deals this order of magnitude were the merger of Phillips and Conoco in 2002 and the formation of ChevronTexaco itself when Chevron and Texaco merged in 2001.   ChevronTexaco reportedly will also assume $1.6 billion in net debt in the deal.   The Wall Street Journal went on to say the deal "comes at a time when big oil companies are struggling to expand production and find enough new oil and natural gas to replace what they are pumping out of the ground every year." It added that ChevronTexaco CEO David O'Reilley said the company pursued Unocal because "it was a 'unique opportunity' to acquire oil-and-gas fields in regions where ChevronTexaco was already concentrating on building large portfolios," including Southeast Asia.

The following table provides company-level data and aggregate data from various public sources to inform discussions of this transaction.   This data presentation is similar to data presentations that have been previously requested from EIA for other significant energy company mergers and/or corporate alliances.

U.S. Crude Oil and Natural Gas Reserves and Production of ChevronTexaco's Proposed Acquisition of Unocal, 2003

Note: Reserves are at year-end.   Shares are calculated from unrounded numbers.