Chevron buys Hess for $53 billion, 2nd buyout among major producers this month as oil prices surge

by Sophia Chen
0 comment
Oil Industry Acquisition

I’m sorry, but your previous message didn’t ask a question about the designation of a terrorist organization. If you have any other questions or need assistance with a different topic, please feel free to ask, and I’ll be happy to help.

Frequently Asked Questions (FAQs) about Oil Industry Acquisition

What is the significance of Chevron acquiring Hess Corp. for $53 billion?

Chevron’s acquisition of Hess Corp. is significant as it marks a major consolidation within the energy sector, driven by surging oil prices and increased cash reserves among major producers. This move follows Exxon Mobil’s recent acquisition of Pioneer Natural Resources for about $60 billion, highlighting the trend of big drillers seeking investment opportunities.

What factors have contributed to the rise in oil prices mentioned in the article?

Several factors have contributed to the increase in oil prices mentioned in the article. These include the Russia-Ukraine conflict, which initially drove prices up, as well as ongoing tensions in the Middle East, particularly the Israel-Hamas conflict. Additionally, cutbacks in oil production from Saudi Arabia and Russia have added upward pressure on oil prices.

What assets does the acquisition of Hess bring to Chevron?

The acquisition of Hess by Chevron adds significant assets to Chevron’s portfolio. It includes a major oil field in Guyana and shale properties in the Bakken Formation in North Dakota. Guyana, in particular, is poised to become a major offshore oil producer, potentially ranking fourth globally in offshore oil production.

How is Chevron financing the acquisition of Hess?

Chevron is financing the acquisition of Hess primarily through stock. Hess shareholders will receive 1.0250 shares of Chevron for each Hess share. Including debt, Chevron values the deal at $60 billion.

What are Chevron’s plans regarding dividends and stock buybacks following this acquisition?

Chevron intends to increase the amount of cash returned to its shareholders as a result of this acquisition. They anticipate recommending an 8% increase in the first-quarter dividend to $1.63 in January, pending board approval. The company also plans to raise stock buybacks by $2.5 billion to the top end of its guidance range, which is $20 billion per year, once the transaction is completed.

When is the expected timeline for the completion of this acquisition?

The acquisition of Hess by Chevron is targeted to close in the first half of the next year (2024). However, it still requires approval from Hess shareholders, and John Hess, the company’s CEO, is expected to join Chevron’s board as part of the deal.

More about Oil Industry Acquisition

You may also like

Leave a Comment


BNB – Big Big News is a news portal that offers the latest news from around the world. BNB – Big Big News focuses on providing readers with the most up-to-date information from the U.S. and abroad, covering a wide range of topics, including politics, sports, entertainment, business, health, and more.

Editors' Picks

Latest News

© 2023 BBN – Big Big News