Oct. 23 (UPI) — Chevron, one of the world’s leading oil producers, announced on Monday it entered into an agreement to purchase Hess Corp. for $53 billion in an all-stock transaction.
Chevron said Hess shareholders will receive 1.0250 shares of Chevron for each Hess share. It said the transaction’s total enterprise value, including debt, is $60 billion.
“This combination positions Chevron to strengthen our long-term performance and further enhance our advantaged portfolio by adding world-class assets,” Chevron Chairman and CEO Mike Wirth said in a statement.
“Importantly, 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.”
Hess CEO John Hess is expected to join Chevron’s board of directors. The company had been engaged in the exploration and production of crude oil and natural gas in offshore Guyana, the Bakken shale play in North Dakota, the deepwater Gulf of Mexico, and the Gulf of Thailand.
“This strategic combination brings together two strong companies to create a premier integrated energy company,” John Hess said in a statement. “I am proud of our people and what we have achieved as a company, which has one of the industry’s best growth portfolios.”
In January, Chevron reported that its total revenues in 2022 more than doubled its year-end totals from the previous year.
“Building on our track record of successful transactions, the addition of Hess is expected to further Chevron’s free cash flow growth,” Pierre Breber, Chevron’s CFO, said.
“With greater confidence in projected long-term cash generation, Chevron intends to return more cash to shareholders with higher dividend per share growth and higher share repurchases.”
