Mubasher: Chevron Corporation has reached an agreement to acquire Noble Energy in an all-stock deal worth $5 billion, or $10.38 per share.

Under the deal, Noble Energy’s shareholders will obtain 0.1191 shares of Chevron for each share of Noble Energy, according to a statement on Monday.

The transaction values Noble Energy at $13 billion, including debt.

Noble Energy’s assets will boost Chevron’s footprint in the DJ Basin of Colorado and the Permian Basin across West Texas and New Mexico and provide Chevron with access to Noble’s flagship field in the Eastern Mediterranean.

 “This is a cost-effective opportunity for Chevron to acquire additional proved reserves and resources,” Chevron’s chairman and CEO, Michael Wirth, said.

“Noble Energy’s multi-asset, high-quality portfolio will enhance geographic diversity, increase capital flexibility, and improve our ability to generate strong cash flow,” Wirth added.

The deal is expected to generate annual run-rate cost synergies of about $300 million before tax.

Upon completion of the deal, Noble Energy’s shareholders will hold about 3% of the combined company.