Chevron completes acquisition of Hess Corporation, creates premier oil & gas company.

Chevron has completed its acquisition of Hess Corporation, creating a premier integrated oil & gas company with world-class assets, people, and capabilities. The combined company has a high cash margin production profile and leading positions in critical energy markets. The acquisition drives industry-leading free cash flow growth and shareholder returns.

Houston, July 2, 2025—Chevron Corporation (NYSE: CVX) has successfully completed its acquisition of Hess Corporation (NYSE: HES), marking a significant milestone in the global energy sector. The merger, which was finalized following the satisfaction of all necessary closing conditions, including a favorable arbitration outcome regarding Hess’ offshore Guyana asset, has created a premier integrated oil and gas company with world-class assets, people, and capabilities [1].

The combined company boasts a high cash margin production profile and leading positions in critical energy markets around the world. Key assets include Chevron’s ownership of a 30% position in the Guyana Stabroek Block, which has more than 11 billion barrels of oil equivalent discovered recoverable resource, and Hess’s 463 thousand net acres of high-quality inventory in the Bakken shale [1].

The acquisition is expected to drive significant free cash flow and production growth into the 2030s. Chevron’s Chief Financial Officer, Eimear Bonner, stated that the transaction is expected to be accretive to cash flow per share in 2025 after achieving synergies and the start-up of the fourth floating production storage and offloading vessel in Guyana [1]. Additionally, the combined company aims to achieve $1 billion in annual run-rate cost synergies by the end of 2025, which should enable even higher returns to shareholders over the long term [1].

Under the terms of the merger agreement, Hess shareholders will receive 1.0250 shares of Chevron for each Hess share. Chevron intends to issue approximately 301 million shares of common stock out of treasury to Hess stockholders in connection with the transaction [1].

Chevron expects to achieve the following transaction benefits: accretive to cash flow per share and extends growth into the 2030s, increases Chevron’s estimated five-year production and free cash flow growth rates, and extends such growth into the next decade. The combined company’s capital expenditures budget is expected to be between $19 and $22 billion, with Chevron targeting to sustain a double-digit Return on Capital Employed (ROCE) at mid-cycle prices [1].

The acquisition adds world-class assets, including Guyana and U.S. Bakken, to Chevron’s diversified global portfolio. Chevron now owns a 30% position in the Guyana Stabroek Block, 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].

Chevron will provide updated long-term financial and operational information and guidance to reflect the acquisition of Hess at its Investor Day in New York City on November 12 [1].

References:
[1] https://www.businesswire.com/news/home/20250718283439/en/Chevron-Completes-Acquisition-of-Hess-Corporation