Chevron 53 Billion Dollar Deal: In a significant development in the oil industry, Chevron Corp has announced its intention to acquire the smaller but formidable rival, Hess Corp, in a mammoth all-stock deal valued at $53 billion. The strategic move is set to propel Chevron into the heart of oil-rich Guyana, marking a bold expansion in this flourishing sector.
This deal will place Chevron and Exxon Mobil in direct competition in two of the world’s swiftest growing oil basins – the shale fields and Guyana. Guyana has rapidly emerged as a significant oil producer in recent years, mainly due to the remarkable discoveries made by Exxon Mobil, its partner Hess, and China’s CNOOC. This triumvirate currently produces a substantial 400,000 barrels per day from two offshore vessels and has ambitious plans for up to 10 offshore projects.
Also Read: Chevron Australian LNG Plants: Secure Global Supply, Strike Resolved
To secure Hess Corp, Chevron is extending a generous offer of $171 for every Hess share, signifying a premium of approximately 4.9% over the stock’s recent closing price. As part of this substantial deal, CEO John Hess of Hess Corp is expected to join Chevron’s board of directors once the transaction concludes, which is anticipated in the first half of 2024.
This union of industry giants is poised to accelerate production and free cash flow growth, surpassing Chevron’s existing five-year guidance. The outcome? An increased commitment to shareholders with higher dividends per share growth and expanded share repurchases, as confirmed by Chevron’s CFO, Pierre Breber.
The timing of this deal is worth noting, coming on the heels of Exxon’s $60 billion bid for Pioneer Natural Resources, a move that could potentially make Exxon the largest producer in the United States’ largest oilfield. The stakes are high, and the oil industry is witnessing a seismic shift as these major players position themselves for the future.
Our Reader’s Queries
Did Chevron buy Hess for $53 billion?
Chevron Corporation (NYSE: CVX) has recently made a significant move by entering into a definitive agreement with Hess Corporation (NYSE: HES) to acquire all of its outstanding shares in an all-stock transaction. The deal is valued at a whopping $53 billion, which translates to $171 per share based on Chevron’s closing price on October 23, 2023. This acquisition is expected to have a significant impact on the energy industry and is a testament to Chevron’s commitment to growth and expansion.
How much did Hess buyout for?
Chevron, the country’s second largest oil company, made an all-stock offer to acquire Hess on October 23rd for a whopping $53 billion. As per the deal, Hess shareholders will receive 1.025 Chevron shares for each HES share they own. This will result in Chevron issuing more than 300 million new shares.
Why is Hess selling to Chevron?
Chevron has made a bold move by acquiring Hess for $53 billion in stock. This strategic move will allow Chevron to expand its oil footprint in the United States and gain a stake in Exxon Mobil’s massive Guyana discoveries. This acquisition is part of a trend of major oil combinations in the United States.
Who did Hess get bought out by?
In a major move for the oil industry, Chevron has acquired Hess for a whopping $53 billion. This marks the second significant deal in the energy sector this month, as prices continue to rise. The acquisition is expected to have a significant impact on the industry, and many are eagerly anticipating the results. With this move, Chevron has solidified its position as a major player in the oil and gas market.