Chevron Completes Acquisition of Hess Corporation for $52.7 Billion

Chevron acquired Hess for $52.7 billion, with Hess shareholders receiving 1.0250 Chevron shares per Hess share. The total enterprise value is $60 billion, and Chevron will issue approximately 317 million shares of common stock. The transaction is accretive to cash flow per share and extends growth into the 2030s. It is subject to regulatory approvals and shareholder approval, with an expected closing date in mid-2024.

Chevron Corporation (CVX) has successfully closed its acquisition of Hess Corporation (HES), marking a significant move in the oil and gas industry. The acquisition, valued at $52.7 billion, was finalized after Chevron's victory in a dispute with Exxon Mobil over Hess's offshore oil assets in Guyana [1]. The deal includes Chevron issuing approximately 317 million shares of common stock to Hess shareholders, with each Hess shareholder receiving 1.0250 Chevron shares [2].

The acquisition is expected to drive significant free cash flow and production growth into the 2030s, according to Eimear Bonner, Chevron's CFO. The combined company's capital expenditures budget is projected to be in the range of $19 billion to $22 billion [2]. This strategic move aims to enhance Chevron's competitive position and extend its growth trajectory, particularly in the lucrative Guyana oil patch.

The transaction is subject to regulatory approvals and shareholder approval, with an expected closing date in mid-2024. The acquisition is seen as accretive to cash flow per share, reflecting Chevron's long-term commitment to shareholder value creation. The combined enterprise value stands at $60 billion, underscoring the strategic importance of the deal [2].

Exxon Mobil, which had previously filed an arbitration case with the International Chamber of Commerce, has stated its disagreement with the ICC panel's interpretation but respects the arbitration process. The ruling cleared the way for Chevron to complete the acquisition, thereby resolving significant uncertainty over the transaction's closure [1].

The acquisition of Hess will not only expand Chevron's footprint in the oil and gas sector but also strengthen its position in the growing Guyana market. The Stabroek Block, where Hess holds a 30% stake, is one of the most promising oil development areas, with substantial reserves estimated to be around 11 billion barrels [1]. This acquisition positions Chevron to benefit from the region's oil boom, potentially driving significant revenue and profit growth.

Chevron's shares jumped about 3% in premarket trading following the announcement of the acquisition, reflecting market optimism about the deal's potential benefits. Hess shares also saw a significant increase, up by 7.67% in premarket trading [2].

In conclusion, Chevron's acquisition of Hess is a strategic move that aims to enhance its competitive position and drive long-term growth. The deal, subject to regulatory and shareholder approval, is expected to bring significant benefits to Chevron and its shareholders, positioning the company strongly in the oil and gas sector.

References:
[1] https://www.cnbc.com/2025/07/18/chevron-defeats-exxon-in-dispute-over-guyana-oil-assets-clearing-path-for-hess-acquisition.html
[2] https://www.nasdaq.com/articles/chevron-closes-acquisition-hess-hes-over-7-pre-market