Chevron’s Shale Bet Down Under Makes Target of Senex: Real M&A

Senex Energy Ltd., Asia’s worst gas exploration stock in the past year, is rebounding after Chevron Corp.’s investment in an Australian shale competitor stoked optimism that it may be the next target.

Last week, Chevron made the biggest single investment in shale in Australia, agreeing to pay as much as $349 million for a stake in Adelaide-based Beach Energy Ltd.’s Cooper Basin prospects. Senex, which also explores in the Cooper Basin, has risen 13 percent since Chevron’s investment fueled investors’ expectations that the Brisbane-based company could lure a buyer, even after its shares had lost 40 percent in the prior 12 months, according to data compiled by Bloomberg.