Chevron Hess Acquisition Sealed After Exxon Fight
Chevron has successfully completed its $55 billion acquisition of Hess Corporation, overcoming a prolonged arbitration challenge from Exxon Mobil. The deal, which was delayed by over a year, grants Chevron access to Hess’s 30% stake in Guyana’s lucrative Stabroek block, one of the fastest-growing oil production regions globally, with over 11 billion barrels of oil.
Chevron CEO Michael Wirth expressed satisfaction with the outcome, stating that the merger brings together two great American companies, combining the best in the industry. The acquisition is expected to drive significant free cash flow and production growth into the 2030s, achieving run-rate cost synergies of $1 billion by the end of 2025.
The Stabroek block is a key asset in Hess’s portfolio, and Chevron’s acquisition strengthens its position in the global energy market. With this deal, Chevron now owns a 30% position in the Guyana Stabroek Block, solidifying its growth strategy.
The acquisition also adds world-class assets, including Guyana and the US Bakken, to Chevron’s diversified global portfolio. Chevron expects the transaction to be accretive to cash flow per share and extend growth into the 2030s. #Chevron Hess Acquisition Sealed After Exxon Fight#
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