CHEVRON TO BUY HESS FOR $53 BILLION IN ALL-STOCK DEAL – Deal Puts Chevron Level With Rival Exxon Mobil
Chevron Corp said it would buy smaller rival Hess Corp in a $53 billion all-stock deal, taking its rivalry with Exxon Mobil to the next level by boosting its presence in U.S. shale and oil-rich Guyana.
The deal is another consolidating step for the U.S. energy sector, and puts Chevron level with rival Exxon Mobil.
It comes less than two weeks after Exxon agreed to buy Pioneer Natural Resources in a $60 billion deal, making it a dominant figure in the U.S. shale oil industry. The supermajors are now head-to-head in two of the world’s fastest growing oil basins – shale and Guyana.
Guyana has become a major oil producer in recent years after huge discoveries by Exxon Mobil, Hess and China’s CNOO.
Together they produce 400,000 barrels per day from two offshore vessels, with the prospect of 8 more projects.
Chevron is offering $171 for every Hess share – a premium of around 5% on the share’s last close.
Hess chief John Hess is expected to join Chevron’s board of directors once the deal closes around the first half of 2024.