Chevron to Acquire Hess in Deal Worth $53 Billion
October 23 2023 - 5:02AM
Dow Jones News
By Ben Otto
Chevron will acquire rival Hess in an all-stock deal worth $53
billion, the companies said Monday.
Chevron will pay $171 a share for Hess, with Hess shareholders
receiving 1.025 shares of Chevron for each Hess share. The
enterprise value of the deal, including debt, is $60 billion, the
companies said.
Chevron said the acquisition would upgrade and diversify its
portfolio, and that it expects the combined company to grow
production and free cash flow "faster and for longer" than
Chevron's current five-year guidance.
"With greater confidence in projected long-term cash generation,
Chevron intends to return more cash to shareholders with higher
dividend per share growth and higher share repurchases," said
Pierre Breber, Chevron's chief financial officer.
Jess Hess, Hess's chief executive, is expected to join Chevron's
board, the companies said.
The deal, subject to approvals by Hess shareholders and
regulators, is expected to close in the first half of 2024.
Write to Ben Otto at ben.otto@wsj.com
(END) Dow Jones Newswires
October 23, 2023 05:47 ET (09:47 GMT)
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