Chevron Corp. (CVX) announced on Monday that it has reached a deal to acquire Hess Corp. (HES) in an all stock transaction worth $53 billion, or $171 per share.
Chevron called Hess' Stabroek block in Guyana an "extraordinary asset" and said Hess' Bakke asset added another US shale oil field to Chevron. The combined company's production and free cash flow growth rate will exceed Chevron's current five-year guidance. According to the terms of the transaction, Hess shareholders will receive 1.0250 Chevron shares for each Hess share they hold, with a total value of $60 billion including debt.
Hess' stock price rose before the market, while Chevron fell.

Chevron Corp. (CVX) announced on Monday that it has reached a deal to acquire Hess Corp. (HES) in an all stock transaction worth $53 billion, or $171 per share.
Chevron called Hess' Stabroek block in Guyana an "extraordinary asset" and said Hess' Bakke asset added another US shale oil field to Chevron. The combined company's production and free cash flow growth rate will exceed Chevron's current five-year guidance. According to the terms of the transaction, Hess shareholders will receive 1.0250 Chevron shares for each Hess share they hold, with a total value of $60 billion including debt.
Hess' stock price rose before the market, while Chevron fell.