Chevron has agreed to acquire Hess in a $53 billion all-stock transaction. Under the terms of the agreement, Hess shareholders will receive 1.0250 shares of Chevron for each Hess share. The total enterprise value, including debt, of the transaction is $60 billion.
The acquisition upgrades and diversifies Chevron’s portfolio, one that now includes the Stabroek block in Guyana, which is expected to deliver production growth into the next decade. Hess’ Bakken assets add another leading US shale position to Chevron’s DJ and Permian basin operations. Additionally, John Hess is expected to join Chevron’s Board of Directors.
“This combination positions Chevron to strengthen our long-term performance and further enhance our advantaged portfolio by adding world-class assets,” said Chevron Chairman and CEO Mike Wirth. “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.”