Combined company will make Chevron second-largest petroleum producer in the world.
The combined company will remain far behind Exxon Mobil Corp. and Royal Dutch Shell Plc. in market capitalization, but Chevron will jump from being the world's fourth biggest energy producer, to second, according to Wood Mackenzie.
The cash-and-stock deal announced Friday comes as U.S. crude prices have shot up 40% this year.
Chevron gets access to Anadarko's liquid natural gas operations in Mozambique and it would control a 75-mile-wide corridor across the Delaware Basin, a region bountiful with natural gas.
Oil prices have been on the rise as OPEC members cut production.
OPEC said this week that its output had been slashed by more than a half million barrels a day last month to just over 30 million barrels, a level not seen since early 2015.
U.S. crude was selling for nearly $65 per barrel Friday. But there are signals that global economic growth is slowing.
Shares of Anadarko jumped 33 percent Friday, while Chevron's stock fell 5 percent.