top of page
  • 1440 Daily Digest

Chevron Buys Hess

Oil giant Chevron Corp. announced it will purchase Hess Corp. in a $53B all-stock deal, or $171 per share, marking the second major oil deal in a month. The acquisition will expand Chevron's assets, incorporating a significant oil field in Guyana and shale properties in North Dakota's Bakken Formation. Oil prices have risen this year, hovering around $90 per barrel for the last two months. With the acquisition, Chevron gains access to Hess’ 30% stake in Guyana's estimated 11 billion barrels of oil and gas reserves (see overview). The country is expected to become the world's fourth-largest offshore oil producer, anticipated to reach 1.2 million barrels of daily production by 2027. Chevron will also gain 465,000 net acres in the Bakken Formation. Hess CEO John Hess is expected to join Chevron's board of directors. The deal comes less than a month after Exxon Mobil Corp.'s nearly $60B transaction to acquire Pioneer Natural Resources (see previous write-up).

2 views0 comments

Recent Posts

See All
bottom of page