Chevron Corporation
1400 Smith Street
Houston, TX 77002-7327
United States
Main Phone: (832) 854-1000
Website: https://www.chevron.com
Industry Sector: Energy, Oil & Gas Integrated
Full Time Employees: 45,298
Fiscal Year End: Dec 31
Annual Revenues: $195.11 Billion USD
CEO: Mike Wirth, CEO & Chairman
Fortune 500 Rank: #16 in 2025
Hess Corporation
1185 Avenue of the Americas
40th Floor
New York, NY 10036
United States
Main Phone: (212) 997-8500
Website: https://www.hess.com
Industry Sector: Energy, Oil & Gas E&P
Full Time Employees: 1,797
Fiscal Year End: Dec 31
Annual Revenues: $12.27 Billion USD
CEO: John B. Hess, CEO & Director
Fortune 500 Rank: #327 in 2025
Key Highlights
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Chevron finished the acquisition of Hess Corporation. This helps the company have a stronger spot as a leader in the global energy business and boosts its group of top assets.
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The deal gives Chevron 30% of the Stabroek Block in Guyana. This place holds over 11 billion barrels of oil that can be taken out, making it very important.
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Both ExxonMobil and CNOOC did not support the acquisition of Hess. They said they had first choice rights. Still, Chevron won at the International Chamber of Commerce, so the deal went through.
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Chevron believes there will be more free cash flow and bigger production growth because of this deal. It also expects to give better returns to its shareholders from the gains of the acquisition of Hess.
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The strong Bakken shale assets from Hess and Chevron’s holdings in the Gulf of Mexico will help increase and spread out production. This will support long-term energy steadiness.
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John Hess, who was CEO of Hess, will now be on Chevron’s Board. He will give guidance to match Chevron’s growth profile.
Introduction
Chevron’s big move to buy Hess Corporation is a key moment in the energy world. This deal, worth $53 billion and done fully in stock, helps Chevron stay as one of America’s top energy companies. With the acquisition of Hess Corporation, Chevron now has new important information and such terms as important assets both offshore and in shale, and further details can be found in this news release on Chevron’s investor relations page.
It was not an easy ride for the acquisition of Hess. ExxonMobil tried to stop the deal. They said the joint operating agreement gave them special rights before anyone else. But Chevron took the case to the International Chamber of Commerce and won in arbitration through hard work. Now, Chevron has a clear duty to leverage these significant value resources and will likely see new production growth in the development of the Guyana resource and beyond as they work with the assets from Hess corporation.
This acquisition of Hess brings together two big energy companies. It also changes how the industry can plan and use resources in the years to come.
Overview of Chevron’s Acquisition of Hess
The acquisition of Hess Corporation is a big move for Chevron. It makes Chevron’s group of assets even stronger. This deal, worth $60 billion counting debt, is through shares only. Hess shareholders will get 1.0250 shares of Chevron for each one of theirs. Both companies’ Boards said yes to the deal. It helps make Chevron an important part in the energy change happening now, and it can also help long-term returns for everyone who owns shares. The assets from Hess fit well with what Chevron already has. This brings in more variety and can push more oil and gas production into the next decade.
The main point in this acquisition is Hess’s 30 percent share in Guyana’s Stabroek Block. People talk about this as the world’s largest oil discovery seen in many years. Chevron will also get strong Bakken shale fields, making U.S. energy safer and stronger. With this integration, Chevron is expected to save $1 billion in costs per year and get more free cash flow. It is also expected to keep production growth steady through the 2030s. John Hess, the CEO John Hess of Hess, is expected to join Chevron’s Board too. This helps the two companies share the same values and vision.
Key Terms and Value of the Deal
The acquisition of Hess was done through an all-stock deal. It was valued at $53 billion, which comes out to $171 for each Hess share. This price was based on Chevron’s closing price on October 20, 2023. When you include Hess’s debt, the total deal is worth about $60 billion. Chevron gave out 317 million shares of common stock to Hess shareholders. This lets Hess shareholders have a part in Chevron’s growth profile and helps change how the two businesses work together.
With this important acquisition of Hess, Chevron now owns Hess’s share of Guyana’s Stabroek Block. This area is a top oil resource. Chevron also adds the Bakken shale assets in North Dakota to the business. These moves can drive production growth for the next decade. Plus, Hess shareholders can benefit from Chevron’s free cash flow growth rates and its approach to paying dividends.
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Details |
Information |
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Total Transaction Value |
$60 billion (including debt) |
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Shares Offered Per Hess Share |
1.025 Chevron shares |
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Expected Cost Synergies |
$1 billion annually |
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Financial Benefits Achieved |
Free cash flow growth + dividends |
Strategic Importance for Chevron
Chevron’s acquisition of Hess shows how much Chevron wants to get the best world class assets in the oil industry. The company knows that having these industry’s best growth portfolios can bring in strong cash now and a lot of value far into the future for all its shareholders. With the addition of Hess’s Guyana resources, Chevron’s growth profile as a leading gas producer is even stronger. This makes Chevron a top name around the world when it comes to oil production. The deal also helps Chevron stay strong for years ahead because it will help keep production growth going into the 2030s.
Hess’s Bakken shale assets work well alongside Chevron’s big projects in the Gulf of Mexico and the Permian Basin. This means there is even more energy stability and more ways to keep things running well. The joining together forms a great group of workers and a good mix of assets with good returns. Now, Chevron can put its money to work in more areas and keep making high profits.
At the end, this merger really brings together two great American companies. That’s what Chevron Chairman and CEO Mike Wirth said about this big move. John Hess being added to Chevron’s Board means his experience will support Chevron’s future plans. It also shows that the company is serious about making things better for the people who own shares in it in years to come.
The Stabroek Block: Guyana’s Oil Riches
Found off the coast of Guyana, the Stabroek Block is now seen as a key spot in energy development. You will find more than 11 billion barrels of recoverable oil here. Chevron now owns 30% of this important asset, which makes it even more of a leading oil and gas business. The Stabroek Block stands out because it brings in a strong cash flow. This is due to its low carbon impact and high production profit.
Chevron having a strategic stake in this area makes its place stronger in one of the world’s top offshore oil finds. With Guyana’s plans for bigger growth, upgrades in production will help Chevron grow even more. This should keep Chevron in a top spot in energy change while making sure the company’s success continues.
What Makes the Stabroek Block Valuable?
The Stabroek Block is seen as one of the most valuable places in oil exploration today. It holds over 11 billion barrels of oil that can be recovered. Many people call it the world’s largest oil discovery in the last ten years. With Hess’s 30% share now part of Chevron’s business, the site looks set to make production much bigger and keep it steady for years to come.
The Stabroek Block stands out because it has low carbon output and strong cash margins. These give Chevron important economic benefits. It matches Chevron’s goal of holding the best assets that bring in large amounts of free cash flow and steady cash flow. Getting oil from Guyana is also important for keeping the world’s oil supply steady.
Several floating production storage vessels, also known as FPSOs, will be working by 2025. Chevron will then be able to boost output a lot and help meet the world’s energy needs. The Stabroek Block helps keep Chevron in a strong financial spot and shows its push for big changes in the industry.
Hess’s 30% Stake and Its Significance
Hess put money into Guyana’s Stabroek Block, and this gives Chevron a strong position in the world oil market. The 30% stake helps Chevron’s group of assets by adding a steady increase in production. Chevron will also have the chance to look for more oil than other companies. Because of this, Hess shareholders now see more value. They get the benefit of being part of Chevron’s bigger plans for growth.
The real value of Hess’s share is in its smart place inside Guyana’s oil resources. Chevron, as one of the industry’s biggest names, is looking to get the most oil out and keep good barrels of oil flowing for the next decade. This resource brings in oil with good profit, backed by new technology.
Chevron taking over adds to what Hess has done with the Guyana resource. It also makes both companies work better together in major producing areas. This new partnership sets fresh ways to be smart with capital while still working toward clean energy paths that matter to all people involved.
ExxonMobil’s Opposition and Pre-Emptive Rights
ExxonMobil holds a 45% stake in Guyana’s Stabroek Block. The company tried to stop Chevron from taking over Hess by using pre-emptive rights that are part of their joint operating agreement. ExxonMobil said it should have the first chance to buy Hess’s stake before Chevron. The company also said that they share important work in Guyana.
But the case went to the International Chamber of Commerce for a decision. After much arguing in court, the International Chamber of Commerce decided that Chevron could make the purchase. This decision let Chevron own the stake and enter the valuable oil reserves of Guyana. It set an important rule for how companies handle big fights like this one.
Exxon and CNOOC’s Arguments Against the Deal
ExxonMobil and CNOOC had a lot to say about Chevron’s acquisition of Hess. They talked about undue reliance and possible bad results for others, called material adverse effects.
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ExxonMobil’s Argument: ExxonMobil pointed out that its joint operating agreement had pre-emptive rights. It said the Hess stake should stay in control of the group, not go to Chevron.
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Contractual Challenges: CNOOC spoke about changes in how the group would work. It asked big questions about how well Chevron and Hess could work together.
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Adverse Effects: ExxonMobil and CNOOC said that Hess shareholders could see less value. This could happen if third-party rights are broken.
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Business Interference: CNOOC said there would be too much reliance and influence involved, and it worried about how the group’s business would run.
In the end, these complaints did not matter, as Chevron won the dispute resolution process.
Details of the Joint Operating Agreement Dispute
The joint operating agreement dispute was at the center of why ExxonMobil did not support Chevron’s $53 billion all-stock deal to buy Hess. Exxon said that Hess broke the agreement by talking to others outside the group. But Hess said that Chevron’s buyout followed Guyana’s operational rules.
The dispute resolution process made people look closely at the contract. This led both sides to talk about guarantees of future performance for everyone who had a stake in Hess. Exxon said that Hess had a duty to follow every part of the shared terms and look out for all members.
Chevron came back with strong reasons, explaining that they had the right to operate on their own and save money while following Guyana’s targets for oil production. In the end, the ICC ruled for Chevron. This outcome is now one of the key examples for global arbitration.
The Legal Battle at the International Chamber of Commerce
The International Chamber of Commerce was the main place where the issue over Chevron’s acquisition of Hess Corporation was settled. In this case, ExxonMobil said it had special rights to buy first. CNOOC also joined the legal case. Chevron’s arguments focused on guarantees of future performance because Hess’s stakeholders agreed with them.
The ICC decided that Chevron had the right to the important Hess shares in the Guyana oil reserves. This result is big for Chevron. It makes Chevron even stronger in the industry and helps guide other cases like this, especially about the acquisition of Hess and future performance promises around the world.
Arbitration Process and Key Legal Points
The arbitration at the International Chamber of Commerce helped Chevron move forward with getting Hess. At the same time, ExxonMobil and CNOOC said there was a problem with key rules. They argued that Chevron did not follow all guarantees as planned. ICC experts looked at all the details in the deal and checked how the arguments fit with the dispute rules.
Chevron’s team did well, showing Hess had the right to make its own deals under stock rules. They also pointed out the mistakes made by others before the talks started. The arbitration put joint asset rules first, but still found that Chevron had a better spot by looking at what stakeholders wanted.
Mike Wirth said, “Chevron’s offer protects people involved better than ExxonMobil’s, which has too much undue reliance.” The choices made by the International Chamber of Commerce in this case help Chevron have a stronger path because of clearer dispute rules.
How Chevron Prevailed in the ICC Ruling
Chevron’s win came because the ICC had clear rules that support oil producer ways of working. Mike Wirth talked about making sure Chevron had a fair shot. He showed that Chevron put this above the claims made by ExxonMobil. Hess shares now help with raising more money for growth, as some people wanted.
The reasons for all the actions with the Guyana deal have a big impact. They give Chevron more power around the world. Exxon’s mistakes did not help them push back. Hess works well with Guyana’s strong points and now helps Chevron focus more on getting more energy.
Chevron now shows the way by following contracts the right way. This helps set new rules for how oil businesses can grow in the future. It also makes sure the industry moves ahead in a clear and fair way.
Summary
Strategic moves like the acquisition of Hess show that Chevron is going through a big change. This step brings world-class assets and offers real growth for both Fortune Ranked companies. The partnership gives them a stronger growth profile. Chevron and Hess will work on the Guyana resource and will also increase production in the Permian Basin and Bakken Shale. Because of this, shareholders should see better returns and better financial health. These deals bring in significant free cash flow and strong cash flow overall. They show that Chevron wants to keep leading the energy sector with new ideas and responsible growth.
Frequently Asked Questions
Why did Chevron want to acquire Hess?
Chevron wanted to buy Hess so it could add more assets in the rich oil area of Guyana. Chevron also hoped to make its work smoother and better by using what Hess knows about finding oil. This plan gives Chevron a better chance to do well and stay strong as the energy business changes fast.
How much did Chevron pay for Hess?
Chevron has agreed to buy Hess Corporation in an all-stock deal worth about $53 billion. This deal will help Chevron add more to its portfolio and get stronger in key oil areas, especially after receiving clearance from the Federal Trade Commission and the exchange commission. The combined company’s capital expenditures budget is expected to benefit from this move, which is big for Chevron, especially in Guyana, and comes after its recent legal wins in the first half of the year.
What was ExxonMobil’s objection to the acquisition?
ExxonMobil said they do not agree with Chevron's acquisition of Hess. They are worried about what it could do to the market in Guyana’s oil sector. They think that if one company gets too big, it could hurt competition there. ExxonMobil believes that less competition could mean higher prices for people over time. There is a concern that with this acquisition of Hess, the market may not work as well for everyone.
What does this deal mean for oil production in Guyana?
The Chevron-Hess acquisition will help to grow oil production in Guyana. This deal will make work easier and help get more money for projects. The two companies working together could help find and produce oil faster. With this, Guyana may become a big name in the world energy market. The country could see more oil coming out with less money going in for each barrel.
How will this acquisition impact Chevron’s global position?
Chevron's acquisition of Hess is set to make the company stronger in the world market. This deal will help Chevron get more resources and work better, contributing to human progress. With the precise description of the acquisition of Hess, Chevron can grow in tough markets, as it manufactures transportation fuels and renewable fuels. This can also help it earn more money and have a bigger role in the energy field, benefiting the operations of separate companies involved.
What are the implications of Chevron acquiring Hess for the oil and gas industry?
Chevron acquiring Hess significantly impacts the oil and gas industry by consolidating market power, enhancing operational efficiencies, and expanding resource access. This acquisition may lead to increased competitiveness, drive innovation, and influence pricing dynamics, ultimately reshaping industry strategies and potentially affecting global supply chains in the energy sector.
Does Databahn have a deep dive company profile on Chevron and Hess?
Yes, Databahn offer two separate deep dive company profile reports that include org charts. There is a report on Chevron and a separate report on Hess. As the two companies merge, the Hess content will eventually merge into the Chevron report.
Source Links:
https://www.chevron.com/newsroom/2025/q3/chevron-completes-acquisition-of-hess-corporation
https://www.ft.com/content/29b40eae-6be7-49a5-b1d2-4cbb4f1d230c
https://www.pwc.com/gx/en/services/deals/trends/energy-utilities-resources.html
https://www.wsj.com/business/energy-oil/guyana-brawl-ceo-exxon-chevron-hess-409c15c1
https://www.fortunechina.com/fortune500/c/2023-07/25/content_436290.htm
