Chevron was not first on our list to lead the next wave of corporate E&P consolidation. But this acquisition makes a lot of sense – it expands core operations in the Permian and Gulf of Mexico and diversifies growth in tight oil and LNG. The potential for synergies is excellent, and crucially the price looks good. Anadarko has been one of our top corporate acquisition picks for over a decade, due to the company's uniquely diversified, oil-weighted portfolio. For Chevron, scaling-up in the Permian is the core driver. Anadarko's Permian tight oil portfolio sits in the heart of Chevron's own Delaware position - and is characterised by some of the lowest breakeven barrels in the play. The combination will offer an almost unrivalled platform from which to drive efficient tight oil development as Chevron rolls out full-scale industrialisation of the play.