FILE - Vacant fuel pump stations at a Chevron gas station in Las Vegas, Nevada, US, on July 21, 2022. Photographer: Bridget Bennett/Bloomberg via Getty Imagesis 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.
The Chevron-Hess deal comes less than two weeks after Exxon Mobil said that it would acquire Pioneer Natural Resources for about $60 billion.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.As conflict continues in Israel, many wonder if there will be a spike in gas prices. LiveNOW from FOX host, Michael Pache spoke to an oil and gas expert about the possibility.
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.
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. Shares of Chevron Corp. declined nearly 3% before the opening bell Monday. Hess Corp.'s stock rose slightly.