The US oil and gas group Chevron has entered into a definitive agreement with the US oil and gas company Hess Corporation to acquire all of the outstanding shares of Hess at a price of US$171 per share in an all-stock transaction valued at US$53bn.
Hess Corporation is an independent energy company active in the exploration and production of crude oil and gas, with major positions offshore Guyana, the Bakken shale play in North Dakota (United States), the deepwater Gulf of Mexico (US) and the Gulf of Thailand. The acquisition will strengthen Chevron's portfolio in the Bakken shale and in Guyana, the world’s largest oil discovery in the last 10 years (30% ownership in the Stabroek block with more than 11 Gboe in discovered recoverable resource), and diversify it with complementary Gulf of Mexico assets and Southeast Asia natural gas business. In addition, the combined company’s capital expenditures are expected to range between US$19bn and US$22bn.
The transaction has been approved by the boards of directors of both companies and is subject to Hess shareholder approval, to regulatory approvals and other customary closing conditions. It is expected to close in the first half of 2024.
Earlier in October 2023, ExxonMobil and Pioneer Natural Resources reached a definitive agreement for ExxonMobil to acquire Pioneer in an all-stock transaction valued at US$59.5bn, or US$253/share. The transaction, which is expected to close in the first half of 2024, would combine the two companies’ unconventional assets in the Delaware and Midland Basins (United States), more than doubling ExxonMobil’s Permian production volume to 1.3 mboe/d (based on 2023 volumes) and to approximately 2 mboe/d in 2027.