Under the terms of the deal, Hess shareholders will receive 1.0250 shares of Chevron for each Hess share, with a total enterprise value, including debt, of $60 billion.
Hess CEO John Hess is expected to join Chevron’s board of directors.
Chevron said the acquisition of Hess adds 30% ownership of more than 11 billion barrels of oil equivalent in Guyana, as well as shale properties in the Bakken Formation in North Dakota.
Both companies said the deal is expected to close in the first half of 2024, pending approval by regulators and Hess shareholders and other customary closing conditions.
“This strategic combination brings together two strong companies to create a premier integrated energy company,” CEO John Hess said. “I am proud of our people and what we have achieved as a company, which has one of the industry’s best growth portfolios including Guyana, the world’s largest oil discovery in the last 10 years, and the Bakken shale, where we are a leading oil and gas producer. Chevron has a world-class diversified portfolio of assets and one of the industry’s strongest balance sheets and cash return profiles. I believe our strategic combination creates a company that is stronger in every respect, with the leadership, asset portfolio and financial resources to lead us through the energy transition and deliver significant shareholder value for years to come.”
And, don’t worry, collectors: Multiple media reports confirmed Hess will continue selling its popular toy trucks at the holidays.