The deal comes less than two weeks after Exxon Mobil said it would acquire Pioneer Natural Resources for about $60 billion.FILE - A motorist drives near the pumps at a Chevron gas station in Oakland, Calif., on April 25, 2017. NEW YORK — Chevron is buying Hess Corp. for $53 billion and it’s not even the biggest acquisition in the energy sector this month as major producers seize the initiative while oil prices surge.
Chevron said Monday that the acquisition of Hess adds a major oil field in Guyana as well as shale properties in the Bakken Formation in North Dakota. Chevron is paying for Hess with stock. Hess shareholders will receive 1.0250 shares of Chevron for each Hess share. Including debt, Chevron valued the deal at $60 billion.
Chevron said the deal will help to increase the amount of cash given back to shareholders. The company anticipates that in January it will be able to recommend boosting its first-quarter dividend by 8% to $1.63. This would still need board approval. The company also expects to increase stock buybacks by $2.5 billion to the top end of its guidance range of $20 billion per year once the transaction closes.
The boards of both companies have approved the deal, which is targeted to close in the first half of next year. It still needs approval by Hess shareholders.WTHR would like to send you push notifications about the latest news and weather.