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Chevron to Acquire Hess for USD 53bn.

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Vincent

MANews-(C)2009-2023

US-based energy company Chevron Corp. (NYSE: CVX) has agreed to acquire all outstanding shares of US-based energy company Hess Corp. (NYSE: HES) in an all-stock transaction valued at UD 53bn announced or USD 171 per share, the company said.

Under the terms of the agreement, Hess shareholders will receive 1.0250 shares of Chevron for each Hess share. The total enterprise value, including debt, of the transaction is USD 60bn.

In aggregate, upon closing of the transaction, Chevron will issue approximately 317 m shares of common stock. Total enterprise value of USD 60bn includes net debt and book value of non-controlling interest.

The acquisition of Hess upgrades and diversifies Chevron's already advantaged portfolio.

The Stabroek block in Guyana is an asset with cash margins and low carbon intensity that is expected to deliver production growth into the next decade. Hess' Bakken assets add another US shale position to Chevron's DJ and Permian basin operations and further strengthen domestic energy security.

The combined company is expected to grow production and free cash...

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