Chevron Corp. has entered into a definitive agreement with global independent energy company Hess Corp. to acquire all of the outstanding shares of Hess in an all-stock transaction valued at $53 billion.
The total enterprise value, including debt, of the transaction is $60 billion.
The acquisition of Hess upgrades and diversifies Chevron’s already advantaged portfolio. The Stabroek block in Guyana is an extraordinary asset with industry-leading cash margins and low carbon intensity that is expected to deliver production growth into the next decade. Hess’s Bakken assets add another leading U.S. shale position to Chevron’s DJ and Permian basin operations and further strengthen domestic energy security. The combined company is expected to grow production and free cash flow faster and for longer than Chevron’s current five-year guidance. In addition, John Hess is expected to join Chevron’s board of directors.
The new assets include the Guyana, 30 percent o