Key facts
- Chevron is acquiring Hess Corp. for $53 billion in an all-stock deal.
- The deal is expected to close in the second half of 2024.
- Hess shareholders will receive 1.0251 Chevron shares for each Hess share.
- The acquisition aims to enhance Chevron's position in Guyana's offshore oil fields.
- Hess holds a significant stake in the Stabroek Block, a major oil discovery.
Chevron announced Wednesday it will buy Hess Corp. for $53 billion in an all-stock deal, a move that would significantly expand the U.S. oil giant's presence in Guyana's oil-rich offshore waters. Hess shareholders will receive 1.0251 Chevron shares for each Hess share they own. The deal is expected to close in the second half of 2024, subject to customary closing conditions, including approval by Hess shareholders and regulatory approvals. The acquisition is seen as a strategic move by Chevron to bolster its position in the Stabroek Block, a major oil discovery off the coast of Guyana where Hess holds a significant stake. The Stabroek Block has yielded billions of barrels of oil and continues to be a prolific source of new discoveries. This transaction marks one of the largest deals in the oil and gas sector in recent years, reflecting the ongoing consolidation within the industry as companies seek to secure long-term production assets and expand their portfolios.