TPL’s top two revenue drivers are tying up in a $33B deal.

Business Wire: Chevron Announces Agreement to Acquire Anadarko

Bloomberg Deal Summary + Occidental Wants APC Too

39% premium.

From TPL’s 10-K:

During 2018, we received $46.0 million, or approximately 15% of our total revenues (prior to deferrals), which included $22.9 million of oil and gas royalty revenue, $11.9 million of easements and sundry income (prior to deferrals), and $11.1 million of water sales and royalties, from Anadarko E&P Onshore, LLC and $49.4 million, or approximately 16% of our total revenues (prior to deferrals), which included $27.1 million of oil and gas royalty revenue and $18.9 million of revenue from sales of oil and gas royalty interests, from Chevron U.S.A., Inc.

Anadarko is water customer.  Strange that Chevron is not.

TPL did sell $19MM in royalties to CVX in 2018 so we know that communication line is open.

XOM > CXO or NBL or PXD or DVN or XEC is probably next.  This is a first big step in the majors cleaning up the Permian.