Chevron Announced Agreement to Acquire Hess Corporation

SEATTLE (Oil Monster): Chevron Corporation announced that it has reached a definitive agreement towards acquisition of all of the outstanding shares of Hess Corporation in an all-stock transaction valued at around $53 billion. The total enterprise value of the transaction is estimated at around $60 billion. Under the terms of the agreement, shareholders of Hess will receive 1.0250 shares of Chevron for each Hess share held by them.

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The acquisition will further upgrade and diversify Chevron’s asset portfolio. The Hess’s Stabroek block in Guyana is expected to deliver production growth into the next decade and beyond. Also, Bakken assets will result in strengthening of Chevron’s DJ and Permian basin shale operations, in addition to ensuring domestic energy security.

Mike Wirth, Chairman and CEO, Chevron Corporation noted that the deal will further strengthen the company’s long-term performance and enhance its portfolio with addition of world-class assets. Both the companies have similar values and cultures. The addition of Hess’ assets will extend Chevron’s free cash flow growth and boost estimated five-year production.

The transaction, which has received unanimous approval of the Boards of Directors of both companies, is expected to close in H1 2024. It is subject to approval by Hess shareholders and other necessary regulatory approvals and customary closing conditions.