Chevron Applauds Dynegy-Illinova Merger, Invests $200 Million in Combined Company

Chevron Corp., a leading energy company, has invested $200 million in the newly merged Dynegy Inc. and Illinova Corp., securing a 28 percent stake in the combined entity. This investment is part of Chevron's overall growth strategy, which aims to leverage Dynegy's energy convergence strategy, utilizing power and natural gas marketing and trading, as well as power generation. Chevron's chairman, Dave O'Reilly, expressed his pleasure with the merger, stating that it will create opportunities for growth and expansion.

Key Takeaways:

• Chevron has invested $200 million in Dynegy, resulting in a 28 percent stake in the combined company.
• Dynegy's energy convergence strategy, which includes power and natural gas marketing and trading, as well as power generation, is expected to expand and return favorable earnings to Chevron.
• Chevron will retain three positions on the merged company's board of directors, held by Patricia Woertz, Darry Callahan, and Dick Matzke.
• Chevron's investment in Dynegy dates back to 1996, when the two companies first combined their natural gas and natural gas liquids businesses.
• Dick Matzke, Chevron Corp. vice chairman, stated that the combined strengths and entrepreneurial spirit of Dynegy and Illinova will position the company for further growth and diversification.

Statistics:

• Chevron's investment in Dynegy is $200 million.
• Chevron's stake in the combined company is 28 percent.
• The Dynegy-Illinova merger was completed on February 1 (no year mentioned).
• Chevron's participation in Dynegy dates back to 1996.
• The combined company's board of directors will have representatives from both Dynegy and Chevron.

Sources:

• Chevron Corp., "Dave O'Reilly's statement on the Dynegy-Illinova merger" (no date mentioned)
• Chevron Corp., "Chevron Corp. invests $200 million in Dynegy" (no date mentioned)
• PRNewswire, "Chevron Corp. statement on Dynegy-Illinova merger" (February 2)