Chevron buys Hess Corporation for $60 billion

Chevron has signed a definitive agreement with fellow energy multinational Hess Corporation to fully acquire the company in a deal valued at USD 60 billion including debt, the buyer announced on Monday.

Chevron will purchase all shares in the company for USD 171 per share based on Chevron’s closing price on October 20, 2023.

Hess shareholders will receive 1.025 shares of Chevron for each Hess share.

The acquisition will see Chevron take over Hess Corporation’s significant operations in Guyana on the Stabroek block, which is currently producing 110,000 boepd, with plans to add three more FPSOs to the current two producing on the block.

It will also see Chevron take over Hess Corporation’s Bakken assets in the USA that will be added to Chevron’s Denver-Julesburg and Permian basin shale assets.

The deal is expected to close in H1 2024 and is subject to regulatory and shareholder approvals.

In 2022, Hess Corporation produced 249,000 bopd and 570 mcf per day of gas. The company’s proven reserves at the end of 2022 were around 1.26 billion boe.

“This combination positions Chevron to strengthen our long-term performance and further enhance our advantaged portfolio by adding world-class assets,” said Mike Wirth, chairman and CEO of Chevron.

“Our two companies have similar values and cultures, with a focus on operating safely and with integrity, attracting and developing the best people, making positive contributions to our communities and delivering higher returns and lower carbon.”

The move follows rival ExxonMobil acquiring US-focused Pioneer Natural Resources for USD 60 billion earlier in October 2023.