Chevron Completes Acquisition of Hess Corporation | CVX Stock News

🗝️ Key Points

• Chevron (CVX, Financial) completes acquisition of Hess Corporation (HES), enhancing its global energy portfolio.
• Strategic merger aligns with Chevron's growth strategy, anticipated to boost free cash flow into the 2030s.
• This move is expected to add considerable industry insight and leadership to Chevron's governance structure.Financially, the deal is poised to deliver substantial benefits with.

• Strategic merger aligns with Chevron’s growth strategy, anticipated to boost free cash flow into the 2030s.
• The transaction is expected to generate $1 billion in annual cost synergies by the end of 2025.

Chevron Corporation (CVX) has finalized its acquisition of Hess Corporation (HES), following the fulfillment of all necessary closing conditions, including a favorable arbitration regarding Hess’ offshore Guyana asset. This strategic merger creates a premier integrated energy company with significant positions in critical energy markets and high cash margin production profiles.

The acquisition significantly expands Chevron’s portfolio with renowned assets including Guyana’s Stabroek Block, which boasts over 11 billion barrels of discovered recoverable oil equivalent resources, and 463 thousand net acres of high-quality inventory in the Bakken shale. Furthermore, Chevron now holds complementary assets in the Gulf of America and Southeast Asia, enhancing its diversified energy presence worldwide.

On July 17, 2025, the Federal Trade Commission (FTC) removed previous restrictions, enabling John Hess to join Chevron’s Board of Directors pending approval. This move is expected to add considerable industry insight and leadership to Chevron’s governance structure.

Financially, the deal is poised to deliver substantial benefits with projected cash flow and production growth into the 2030s. Chevron CFO Eimear Bonner highlighted expectations to achieve $1 billion in annual run-rate cost synergies by year-end 2025, which will be instrumental in driving higher shareholder returns.

Under the terms of the merger, Hess shareholders will receive 1.0250 shares of Chevron for each Hess share owned. Approximately 301 million shares of Chevron stock out of treasury will be issued to Hess stockholders to complete the transaction.

Chevron plans to update its long-term financial and operational forecasts at its Investor Day in New York City on November 12, reflecting this transformative acquisition.

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