Chevron Corp. said Monday that it’s reached a deal to buy Hess Corp. in an all-stock agreement valued at $53 billion, or $171 per share.
Chevron
CVX,
called Hess’s
HES,
Stabroek block in Guyana an “extraordinary asset,” and said Hess’s Bakke assets would give it another U.S. shale position. The energy giant expects the combined company will grow production and free cash flow faster than what’s baked into Chevron’s current five-year guidance.
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 Chief Executive John Hess is expected to join Chevron’s board of the directors.
Shares of Hess, which closed Friday at $163.02, rose 2.7% in premarket trading to $166.17. Chevron shares dropped 2.7% to $162.83 after closing at $166.83 Friday.
The Chevron deal comes after Exxon Mobil Corp.
XOM,
announced plans to purchase Pioneer Natural Resources
PXD,
for $59.5 billion earlier this month. That marked the biggest deal announcement of 2023, which has been lackluster on the merger front.
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