Chevron To Acquire Hess Corp.; All-stock Deal Valued At $53 Bln

(RTTNews) - Chevron Corporation (CVX) has entered into a definitive agreement with Hess Corporation (HES) to acquire all of the outstanding shares of Hess in an all-stock deal valued at $53 billion, or $171 per share. Hess shareholders will receive 1.0250 shares of Chevron for each Hess share. The total enterprise value, including debt, of the deal is $60 billion.

Hess Corporation is leading global independent energy company engaged in the exploration and production of crude oil and natural gas. John Hess is expected to join Chevron's Board. The transaction is expected to close in the first half of 2024.

In January, Chevron plans to recommend an increase to first quarter dividend per share of 8% to $1.63. Post closing, Chevron plans to increase share repurchases by $2.5 billion to the top end of its guidance range of $20 billion per year in a continued upside oil price scenario.

The combined company's capital expenditures budget is anticipated to be between $19 and $22 billion. After closing, Chevron expects to increase asset sales and generate $10 to $15 billion in before-tax proceeds through 2028.