Chevron to Acquire Hess for $53 Billion in Latest Major Oil Deal

Chevron, the U.S. energy giant, said Monday that it had agreed to acquire Hess, a medium-sized rival, in an all-stock deal valued at $53 billion.

The deal marks a further consolidation of the energy industry, especially in the United States, where smaller companies appear to be taking advantage of relatively high oil prices to join forces with bigger players. The transaction follows Exxon Mobil’s $60 billion purchase of shale driller Pioneer Natural Resources earlier this month, another sign of confidence among large industry players in the future of fossil fuels even as policymakers promote cleaner energy sources.

In a news release, Chevron said the acquisition would diversify its portfolio. Hess would add about 10 percent to Chevron’s overall oil and gas production of about 3 million barrels a day.

Mike Wirth, Chevron’s chairman and chief executive, said in a statement that the deal enhances the company’s operations “by adding world-class assets.”

Hess has a strong position in Guyana, where major oil discoveries have been made in recent years and where Chevron’s rival, Exxon, is the key operator. Hess is also a leader in the Bakken shale area of North Dakota.

John Hess, the chief executive of Hess, is expected to join Chevron’s board.

Anna Edwards

Recent Posts

The role of pure mathematics in transforming modern industries

Introduction: When Abstraction Becomes IndispensablePure mathematics has often been pursued for intellectual beauty rather than…

3 days ago

How antitrust interventions reshaped 12 major companies

Understanding Corporate Breakups for Abusive PracticesAntitrust law exists to prevent companies from abusing market power,…

3 days ago

Reducing customer churn without sacrificing pricing discipline

Minimizing client attrition while maintaining pricing integrity ranks among contemporary commerce's most intricate hurdles. Buyers…

3 days ago

How 8 scientific reports built public trust in climate science

Introduction: Science as a Turning Point in Public AwarenessPublic perception regarding climate change did not…

3 days ago

The key investment principles behind Warren Buffett’s legendary career

1. Warren Buffett – The Discipline of Value and PatienceKey Strategy: Acquire wonderful businesses at…

3 days ago

From Morse code to email: the decline of the telegraph messenger industry

1. The Telegraph Messenger IndustryBefore telephones and digital communication, businesses and governments relied on telegraph…

4 days ago