Chevron has stated , “The Stabroek block in Guyana represents an exceptional asset characterized by industry-leading profitability and minimal carbon footprint, poised to fuel production growth well into the coming decade.” Furthermore, Chevron underscored the significance of its acquisition of Hess’ Bakken assets, which bolster its position in the U.S. shale sector alongside its existing DJ and Permian basin operations, enhancing domestic energy security.
Chevron’s press release highlighted that the amalgamation of these assets is anticipated to accelerate production and free cash flow growth, exceeding Chevron’s current five-year guidance. The deal, unanimously approved by the boards of both companies, is expected to close in the first half of the following year. It entails Chevron acquiring all outstanding shares of Hess in an all-stock transaction valued at $53 billion, equivalent to $171 per share based on Chevron’s closing price on October 20, 2023.
Under the agreement, Hess CEO John Hess is expected to join Chevron’s Board of Directors. The deal will have to meet approval from Hess shareholders and regulators in order to go through. Chevron has stated
“This combination positions Chevron to strengthen our long-term performance and further enhance our advantaged portfolio by adding world-class assets,” Chevron Chairman and CEO Mike Wirth said in a statement. “Importantly, our two companies have similar values and cultures, with a focus on operating safely and with integrity, attracting and developing the best people, making positive contributions to our communities and delivering higher returns and lower carbon.”