Acquisition Overview
Chevron has completed its acquisition of Hess Corporation, following the fulfillment of all necessary conditions, including a favorable arbitration outcome for Hess' offshore Guyana asset. This merger positions the combined entity as a leading player in critical energy markets globally.
Strategic Assets
The acquisition adds significant assets to Chevron's portfolio, including a 30% stake in the Guyana Stabroek Block with over 11 billion barrels of oil equivalent, and 463 thousand net acres in the Bakken. Additional assets include operations in the Gulf of America and natural gas assets in Southeast Asia.
Financial Impact
The transaction is expected to drive substantial free cash flow and production growth into the 2030s. Chevron anticipates achieving $1 billion in annual run-rate cost synergies by the end of 2025. The capital expenditures budget for the combined company is projected to be between $19 and $22 billion.
Shareholder Details
Under the merger agreement, Hess shareholders will receive 1.0250 shares of Chevron for each Hess share. Chevron plans to issue approximately 301 million shares of common stock to Hess stockholders as part of the transaction.
