Chevron (CVX) announced that, under the terms of its previously announced merger agreement with Anadarko Petroleum (APC), it will not make a counterproposal and will allow the four-day match period to expire.

Accordingly, Chevron anticipates that Anadarko will terminate the merger agreement. Upon termination of the merger agreement, Anadarko will be required to pay Chevron a termination fee of $1B. "Consistent with Chevron's commitment to superior shareholder returns," the company plans to increase its share repurchase rate by 25% to $5B per year, Chevron said. "Winning in any environment doesn't mean winning at any cost. Cost and capital discipline always matter, and we will not dilute our returns or erode value for our shareholders for the sake of doing a deal.

Our advantaged portfolio is driving robust production and cash flow growth, higher investment returns and lower execution risk. We are well positioned to deliver superior value creation for our shareholders," said Chevron's Chairman and CEO Michael Wirth.