Chevron Seen Eyeing Cobalt to Kosmos in Hunt for Oil: Real M&A

Chevron Corp., the U.S. oil giant facing its longest slide in energy output in four years, could tap record cash to reignite growth by acquiring Cobalt International Energy Inc. or Kosmos Energy Ltd.

Oil and natural gas production from Chevron’s wells during the third quarter dwindled to the lowest since 2008, slashing profit by one-third and adding to declines that had already forced the world’s fourth-largest energy company to abandon its full-year output target. Even after the earnings drop, Chevron’s cash stood at an all-time high of $21.3 billion, exceeding that of bigger rivals Exxon Mobil Corp. and Royal Dutch Shell Plc, according to data compiled by Bloomberg.