U.S. oil and natural gas company Chevron Corp. is planning to purchase peer Anadarko Petroleum Corp. for $50 billion.

The deal will also bolster Chevron's presence in the Gulf of Mexico, add a compelling liquefied natural gas project in Mozambique, and give it a position in two shale plays in the Rockies.

Under the move, which will bulk up Chevron's industry-leading position in the fast-growing Permian Basin, Chevron will acquire Anadarko's 55 percent stake in Western Midstream.

Additionally, the acquisition of Western Midstream would boost Chevron's midstream business, which could enhance the long-term value created by this combination.