Chevron Completes $53 Billion Acquisition of Hess Amid Exxon's Attempt to Derail Deal

Chevron has completed its $53 billion acquisition of Hess, following an international court's approval. The deal came after Exxon Mobil's bid to derail the acquisition was cleared. Chevron's shares fell 1% while Exxon's shares declined 3.5%. The acquisition solidifies Chevron's position in the oil and gas industry.

Chevron Corporation (NYSE: CVX) has successfully completed its acquisition of Hess Corporation (NYSE: HES), marking a significant milestone in the oil and gas industry. The deal, valued at $53 billion, was finalized following the satisfaction of all necessary closing conditions, including a favorable arbitration outcome regarding Hess’ offshore Guyana asset [1].

The acquisition brings together two of the industry's leading companies, combining world-class assets, people, and capabilities. Chevron now owns a 30% position in the Guyana Stabroek Block, which has more than 11 billion barrels of oil equivalent discovered recoverable resource. Additionally, Chevron gains 463 thousand net acres of high-quality inventory in the Bakken, complementary assets in the Gulf of America with 31 thousand barrels of oil equivalent per day, and natural gas assets in Southeast Asia with 57 thousand barrels of oil equivalent per day [1].

The acquisition is expected to drive significant free cash flow and production growth into the 2030s. Chevron aims to achieve $1 billion in annual run-rate cost synergies by the end of 2025, which will enable higher returns to shareholders over the long term. The combined company's capital expenditures budget is expected to be between $19 and $22 billion, and Chevron targets to sustain a double-digit Return on Capital Employed (ROCE) at mid-cycle prices [1].

Following the acquisition, Chevron's shares fell 1% while Exxon Mobil's shares declined 3.5%. The acquisition came after Exxon Mobil's bid to derail the acquisition was cleared, solidifying Chevron's position in the oil and gas industry. The deal is expected to extend Chevron's growth profile well into the next decade, driving greater long-term value to shareholders [1].

Chevron expects to provide updated long-term financial and operational information and guidance at its Investor Day in New York City on November 12. The combined company's assets and capabilities position it for future growth and success in the energy sector [1].

References:
[1] https://www.chevron.com/newsroom/2025/q3/chevron-completes-acquisition-of-hess-corporation