🛢️ Chevron-Hess Deal: Chevron (CVX) announced its acquisition of Hess Corp (HES) in an all-stock transaction valued at $53 billion, aiming to expand its presence in the oil-rich region of Guyana.
🌍 Guyana’s Oil Boom: The acquisition places Chevron and Exxon Mobil (XOM) in direct competition in two rapidly expanding oil basins: shale and Guyana. Recent significant oil discoveries by Exxon Mobil, Hess, and China’s CNOOC have transformed Guyana into a prominent oil producer, with a combined output of 400,000 barrels per day from two offshore vessels.
💰 Deal Details: Chevron’s offer stands at $171 per Hess share, a 4.9% premium on its last closing price. John Hess, CEO of Hess Corp, is set to join Chevron’s board post-acquisition, with the merger expected to close in the first half of 2024. The unified entity anticipates accelerated production and cash flow growth, surpassing Chevron’s existing five-year projections.