Chevron to Buy Hess for $53 Billion

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Chevron said it would buy Hess in an all-stock deal worth $53 billion, in the latest sign of consolidation in an oil-and-gas industry flush with cash.

The U.S. energy giant said buying Hess would upgrade and diversify its portfolio, adding a large oil asset in Guyana and bolstering its U.S. shale operations. Chevron also highlighted the attraction of Hess’s assets in the Gulf of Mexico and its natural-gas business in Southeast Asia.

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The deal comes at a time when oil-and-gas companies are flush with cash after energy prices rocketed in the wake of Russia’s invasion of Ukraine.

Exxon Mobil earlier this month struck a nearly $60 billion agreement to buy Pioneer Natural Resources in the largest oil-and-gas deal in two decades. Both Exxon and Chevron have also agreed on smaller transactions earlier this year.

On Monday, Chevron Chief Executive Officer Mike Wirth said the deal for Hess would position his company to strengthen its long-term performance and further enhance its portfolio. The combination is also expected to achieve cost synergies of around $1 billion before taxes within a year of closing, the company said.

Chevron said it expected the Hess deal, which needs a green light from Hess shareholders as well as regulatory approvals, to close in the first half of 2024.

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