Chevron: Acquisition of Hess Fills Long-Term Growth Gap With Prolific Guyana

On Oct. 23, Chevron announced its intention to acquire Hess for $171 per share, or $53 billion, in an all-equity deal (1.025 Chevron shares per Hess share) based on Chevron’s closing price on Oct. 20. With Hess, Chevron gains meaningful positions in Guyana and the Bakken, including Hess’ midstream assets, as well as smaller positions in the Gulf of Mexico and natural gas assets in Southeast Asia. Given its size and economics, Guyana is the most attractive of the group and likely the key driver of the deal, as it adds a source of long-term growth Chevron had been lacking.