The strategic merger creates an industry leader with a highly advantaged portfolio, poised for significant free cash flow growth and enhanced shareholder returns.
Chevron Corporation announced on July 21, the successful completion of its landmark acquisition of Hess Corporation, marking a pivotal moment in the global energy landscape. The merger, which follows the satisfaction of all necessary closing conditions, including a favorable arbitration ruling concerning Hess’ critical offshore Guyana asset, establishes a premier integrated oil and gas company with an unparalleled portfolio of world-class assets and capabilities.
This strategic combination is set to drive industry-leading free cash flow growth and deliver substantial long-term value to shareholders. Adding to the positive momentum, the Federal Trade Commission (FTC) lifted its prior restriction on July 17, 2025, paving the way for former Hess Corporation CEO John Hess to join Chevron’s Board of Directors, pending Board approval.
Mike Wirth, Chevron Chairman and CEO, lauded the acquisition, stating, “This merger of two great American companies brings together the best in the industry. The combination enhances and extends our growth profile well into the next decade, which we believe will drive greater long-term value to shareholders. Additionally, I’m pleased with the FTC’s unanimous decision. John is a respected industry leader, and our Board would benefit from his experience, relationships and expertise.”
John Hess, reflecting on the journey, expressed pride in his team’s achievements. “We are proud of everyone at Hess for building one of the industry’s best growth portfolios including Guyana, the world’s largest oil discovery in the last 10 years, and the Bakken shale, where we are a leading oil and gas producer,” he said. “The strategic combination of Chevron and Hess creates a premier energy company positioned for the future.”
The acquisition significantly bolsters Chevron’s diversified global portfolio, integrating key assets like the prolific Guyana Stabroek Block, where Chevron now holds a 30% position with over 11 billion barrels of oil equivalent discovered recoverable resource. It also incorporates 463,000 net acres of high-quality inventory in the U.S. Bakken shale. Complementary assets in the Gulf of America, contributing 31 thousand barrels of oil equivalent per day, and natural gas assets in Southeast Asia, adding 57,000 barrels of oil equivalent per day, further enhance Chevron’s operational footprint alongside its existing leadership in the Permian Basin, DJ Basin, Kazakhstan, Eastern Mediterranean, and Australia.
Chief Financial Officer Eimear Bonner highlighted the expected benefits: “This accretive transaction is expected to drive significant free cash flow and production growth into the 2030s. We are quickly integrating our two companies and expect to achieve $1 billion in annual run-rate cost synergies by the end of 2025. All of this should enable even higher returns to shareholders over the long-term.”
Under the terms of the merger agreement, Hess shareholders received 1.0250 shares of Chevron for each Hess share. Consequently, Chevron intends to issue approximately 301 million shares of common stock from its treasury to Hess stockholders. The 15.38 million shares of Hess common stock previously owned by Chevron were cancelled without consideration.
