SAN RAMON, Calif. — Chevron is buying Anadarko Petroleum in a $33 billion cash-and-stock deal as the company seeks to grow stronger in deep water exploration in the gulf and the energy-rich southwest region of Texas called the Permian Basin.

The deal, announced Friday, arrives with U.S. crude prices up 40% this year.

The companies put the enterprise value of the deal at $50 billion.

Anadarko shareholders will receive 0.3869 shares of Chevron and $16.25 in cash for each share they own, or $65 per share. Chevron will issue about 200 million shares and pay approximately $8 billion in cash. It will also assume about $15 billion in debt.

The deal is expected to close in the second half of the year.

AP