adminBy Ben Otto
Chevron will acquire rival Hess in an all-stock deal worth $53 billion, the companies said Monday.
Chevron will pay $171 a share for Hess, with Hess shareholders receiving 1.025 shares of Chevron for each Hess share. The enterprise value of the deal, including debt, is $60 billion, the companies said.
Chevron said the acquisition would upgrade and diversify its portfolio, and that it expects the combined company to grow production and free cash flow “faster and for longer” than Chevron’s current five-year guidance.
“With greater confidence in projected long-term cash generation, Chevron intends to return more cash to shareholders with higher dividend per share growth and higher share repurchases,” said Pierre Breber, Chevron’s chief financial officer.
John Hess, Hess’s chief executive, is expected to join Chevron’s board, the companies said.
The deal, subject to approvals by Hess shareholders and regulators, is expected to close in the first half of 2024.
Write to Ben Otto at [email protected]
Corrections & Amplifications
This article was corrected at 0944 GMT to correct a misspelled name. John Hess, Hess’s chief executive, is expected to join Chevron’s board. An earlier article misstated the name as Jess Hess.
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