This calculator sizes up the two competing bids for U.S. shale oil driller Anadarko Petroleum unveiled by Chevron and Occidental Petroleum in April.

Each bidder is offering stock as part of their deal, so Anadarko directors and investors have to weigh not just the headline number on offer, but what they think the bidder’s shares are really worth, and how much value they can realize in cost cuts.

The main inputs are each bidder’s fair value – to adjust for any under or overvaluation before the offers were announced – and how much each can achieve in cost cuts. The default settings are what each bidder has actually targeted. The result is the real premium Anadarko would receive.

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