Chevron Corp has made an agreement to buy Hess Corp for a deal worth $53 billion, making it the latest major consolidation in the US oil industry.
Chevron has agreed to buy Hess in an all-stock transaction and will pay $171 per share of Hess. The shareholders of Hess will receive 1.025 shares of Chevron for each share of Hess owned, giving the company a total enterprise value of $60 billion that includes debt.
This is the second such major deal made in the US oil industry in just a matter of weeks. Exxon Mobil Corp. has agreed to buy shale oil producer Pioneer Natural Resources Co. for a total consideration of $58 billion, which underpins the idea that oil and gas will remain central to the world’s energy mix for times to come.
Chairman and Chief Executive Officer Mike Wirth said, “This combination positions Chevron to strengthen our long-term performance and further enhance our advantaged portfolio by adding world-class assets.”