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Chevron's Victory in the Oil-Patch Brawl Was a Much-Needed Win
Chevron's Victory in the Oil-Patch Brawl Was a Much-Needed Win

Wall Street Journal

time4 hours ago

  • Business
  • Wall Street Journal

Chevron's Victory in the Oil-Patch Brawl Was a Much-Needed Win

Chevron's CVX -0.89%decrease; red down pointing triangle victory in its high-stakes clash with Exxon Mobil XOM -3.48%decrease; red down pointing triangle secured its entry into one of the world's most coveted oil projects. It badly needed the win. A trio of international arbitrators on Friday allowed Chevron to clinch its $53 billion deal to buy Hess, rejecting a contractual challenge from Exxon over bidding rights to Hess's slice of a generational oil project in Guyana, in South America. Chevron quickly closed the deal and said it planned to nominate oil veteran John Hess to its board.

Chevron completes $53B acquisition of Hess
Chevron completes $53B acquisition of Hess

UPI

time19 hours ago

  • Business
  • UPI

Chevron completes $53B acquisition of Hess

1 of 2 | A Hess logo is displayed on the floor of the NYSE after Chevron announced on October 23, 2023, that it had agreed to buy rival Hess in an oil industry consolidation deal. File Photo by John Angelillo/UPI | License Photo July 18 (UPI) -- Chevron, one of the world's leading energy companies, completed its $53 billion acquisition of Hess after all legal hurdles were cleared, including the company's vast oil fields off the coast of Guyana. The deal involving the two public companies was originally announced on Oct. 23, 2023. Chevron, headquartered in Houston, received a favorable arbitration ruling from the International Chamber of Commerce, denying Exxon Mobil's claim of a right of first refusal over Hess' assets in the Stabrock Block, an oil development site off Guyana adjacent to Brazil and Venezuela in South America. Hess, headquartered in New York, has a 30% stake in the oil reserve. Exxon leads the project with 45%. China National Oil Corp., which also challenged the acquisition, has 25% stake. "We disagree with the ICC panel's interpretation but respect the arbitration and dispute resolution process," Exxon said in a statement to CNBC after the ruling. "We welcome Chevron to the venture and look forward to continued industry-leading performance and value creation in Guyana for all parties involved." Chevron Chairman and CEO Mike Wirth said in a statement: "This merger of two great American companies brings together the best in the industry. The combination enhances and extends our growth profile well into the next decade, which we believe will drive greater long-term value to shareholders." Also on Friday, the Federal Trade Commission cleared CEO John Hess to join Chevron's Board of Directors, pending board approval. "I'm pleased with the FTC's unanimous decision," Wirth said. "John is a respected industry leader, and our board would benefit from his experience, relationships and expertise." John Hess said: "We are proud of everyone at Hess for building one of the industry's best growth portfolios, including Guyana, the world's largest oil discovery in the last 10 years, and the Bakken shale, where we are a leading oil and gas producer. The strategic combination of Chevron and Hess creates a premier energy company positioned for the future." Chevron already is the leader in reserves worldwide. The company has 463,000 acres off high-quality inventory in Bakken in North Dakota, Montana and Canada, as well of 31,000 barrels of oil equivalent per day in the Gulf of Mexico/America and gas assets in Southeast Asia with 57,000 barrels per day. Chevron also has assets in the Permian Basin in West Texas/southeastern New Mexico, DJ Basin in northeastern Colorado/southeastern Wyoming, Eastern Mediterranean, Kazakhstan and Australia. "This accretive transaction is expected to drive significant free cash flow and production growth into the 2030s," Chief Financial Officer Eimear Bonner said. "We are quickly integrating our two companies and expect to achieve $1 billion in annual run-rate cost synergies by the end of 2025. All of this should enable even higher returns to shareholders over the long-term." Hess shareholders will receive 1.0250 shares of each Chevron share. The combined company's capital expenditures budget is projected to be between $19 billions and $22 billion, Chevron said. Chevron's stock price was down 0.95% to 149.94 a few hours before closing on the New York Stock Exchange. Hess stock was halted on Friday due to the sale. Chevron produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies. Chevron is a descendant of Standard Oil that broke away in 1911 and merged with Texaco in 2001. Exxon Mobil is also a descendant of Standard Oil. Chevron in 2025 had the third-largest revenue of a U.S. company at $193 billion, behind Exxon-Mobil with $340 billion and Shell at $281 billion. Saudi Aramco is the top publicly traded company with revenue of $478 billion, according to CompaniesMarketCap. Chevron ranks sixth worldwide with Exxon Mobil fourth. Hess ranked 88th in the world with $12.5 billion. Hess Oil and Chemical was founded in 1933 by Leon Hess in Asbury Park. N.J. The company opened its first oil refinery in 1966. In 1968, Hess merged with Amerada and changed its name to Hess Corp. Hess, which has 1,797 employees, sold its gas stations to Speedway, which was acquired by 7-Eleven in 2021.

Chevron gets go ahead for USD 53B Hess deal
Chevron gets go ahead for USD 53B Hess deal

News18

time20 hours ago

  • Business
  • News18

Chevron gets go ahead for USD 53B Hess deal

Agency: PTI Houston, Jul 18 (AP) Chevron has scored a critical ruling in Paris that has given it the go-ahead for a USD 53 billion acquisition of Hess and access to one of the biggest oil finds of the decade. Chevron said Friday that it completed its acquisition of Hess shortly after the ruling from the International Chamber of Commerce in Paris. Exxon had challenged Chevron's bid for Hess, one of three companies with access to the massive Stabroek Block oil field off the coast of Guyana. 'We disagree with the ICC panel's interpretation but respect the arbitration and dispute resolution process," Exxon Mobil said in a statement on Friday. Guyana is a country of 791,000 people that is poised to become the world's fourth-largest offshore oil producer, placing it ahead of Qatar, the United States, Mexico and Norway. It has become a major producer in recent years. Oil giants Exxon Mobil, China's CNOOC, and Hess squared off in a heated competition for highly lucrative oil fields in northern South America. With Chevron getting the green light on Friday, it is now one of the major players in the Stabroek. 'We are proud of everyone at Hess for building one of the industry's best growth portfolios including Guyana, the world's largest oil discovery in the last 10 years, and the Bakken shale, where we are a leading oil and gas producer," former Hess CEO John Hess said in a statement. 'The strategic combination of Chevron and Hess creates a premier energy company positioned for the future." Chevron also said that on Thursday the Federal Trade Commission lifted its earlier restriction, clearing the way for John Hess to join its board of directors, subject to board approval. Chevron announced its deal for Hess in October 2023, less than two weeks after Exxon Mobil said that it would acquire Pioneer Natural Resources for about USD 60 billion. Chevron said at the time that the acquisition of Hess would add a major oil field in Guyana as well as shale properties in the Bakken Formation in North Dakota. 'Given the significant value we've created in the development of the Guyana resource, we believed we had a clear duty to our investors to consider our preemption rights to protect the value we created through our innovation and hard work at a time when no one knew just how successful this venture would become," Exxon Mobil said Friday. 'We welcome Chevron to the venture and look forward to continued industry-leading performance and value creation in Guyana for all parties involved." Chevron's stock rose more than 3 per cent before the market open, while shares of Hess surged more than 7 per cent. Exxon's stock climbed slightly. (AP) GRS GRS view comments First Published: July 18, 2025, 19:15 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.

Chevron gets go ahead for $53 billion Hess deal
Chevron gets go ahead for $53 billion Hess deal

Economic Times

timea day ago

  • Business
  • Economic Times

Chevron gets go ahead for $53 billion Hess deal

File - Chevron logos are displayed at a gas station in Columbus, Miss., Monday, Oct. 23, 2023. Synopsis Chevron secured a crucial ruling in Paris, paving the way for its USD 53 billion acquisition of Hess. This deal grants Chevron access to the significant Stabroek Block oil field off Guyana. Exxon Mobil initially challenged the acquisition but has now acknowledged the ruling. Guyana is set to become a major offshore oil producer. Chevron has scored a critical ruling in Paris that has given it the go-ahead for a USD 53 billion acquisition of Hess and access to one of the biggest oil finds of the decade. ADVERTISEMENT Chevron said Friday that it completed its acquisition of Hess shortly after the ruling from the International Chamber of Commerce in Paris. Exxon had challenged Chevron's bid for Hess, one of three companies with access to the massive Stabroek Block oil field off the coast of Guyana. "We disagree with the ICC panel's interpretation but respect the arbitration and dispute resolution process," Exxon Mobil said in a statement on Friday. Guyana is a country of 791,000 people that is poised to become the world's fourth-largest offshore oil producer, placing it ahead of Qatar, the United States, Mexico and Norway. It has become a major producer in recent years. Oil giants Exxon Mobil, China's CNOOC, and Hess squared off in a heated competition for highly lucrative oil fields in northern South America. With Chevron getting the green light on Friday, it is now one of the major players in the Stabroek. ADVERTISEMENT "We are proud of everyone at Hess for building one of the industry's best growth portfolios including Guyana, the world's largest oil discovery in the last 10 years, and the Bakken shale, where we are a leading oil and gas producer," former Hess CEO John Hess said in a statement. "The strategic combination of Chevron and Hess creates a premier energy company positioned for the future." Chevron also said that on Thursday the Federal Trade Commission lifted its earlier restriction, clearing the way for John Hess to join its board of directors, subject to board approval. ADVERTISEMENT Chevron announced its deal for Hess in October 2023, less than two weeks after Exxon Mobil said that it would acquire Pioneer Natural Resources for about USD 60 billion. Chevron said at the time that the acquisition of Hess would add a major oil field in Guyana as well as shale properties in the Bakken Formation in North Dakota. ADVERTISEMENT "Given the significant value we've created in the development of the Guyana resource, we believed we had a clear duty to our investors to consider our preemption rights to protect the value we created through our innovation and hard work at a time when no one knew just how successful this venture would become," Exxon Mobil said Friday. "We welcome Chevron to the venture and look forward to continued industry-leading performance and value creation in Guyana for all parties involved." Chevron's stock rose more than 3 per cent before the market open, while shares of Hess surged more than 7 per cent. Exxon's stock climbed slightly. (You can now subscribe to our Economic Times WhatsApp channel) (Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates. NEXT STORY

Chevron gets go ahead for $53 billion Hess deal
Chevron gets go ahead for $53 billion Hess deal

Time of India

timea day ago

  • Business
  • Time of India

Chevron gets go ahead for $53 billion Hess deal

Chevron has scored a critical ruling in Paris that has given it the go-ahead for a USD 53 billion acquisition of Hess and access to one of the biggest oil finds of the decade. Chevron said Friday that it completed its acquisition of Hess shortly after the ruling from the International Chamber of Commerce in Paris. Exxon had challenged Chevron's bid for Hess, one of three companies with access to the massive Stabroek Block oil field off the coast of Guyana. "We disagree with the ICC panel's interpretation but respect the arbitration and dispute resolution process," Exxon Mobil said in a statement on Friday. Guyana is a country of 791,000 people that is poised to become the world's fourth-largest offshore oil producer, placing it ahead of Qatar, the United States, Mexico and Norway. It has become a major producer in recent years. Oil giants Exxon Mobil, China's CNOOC, and Hess squared off in a heated competition for highly lucrative oil fields in northern South America. Live Events With Chevron getting the green light on Friday, it is now one of the major players in the Stabroek. "We are proud of everyone at Hess for building one of the industry's best growth portfolios including Guyana, the world's largest oil discovery in the last 10 years, and the Bakken shale , where we are a leading oil and gas producer," former Hess CEO John Hess said in a statement. "The strategic combination of Chevron and Hess creates a premier energy company positioned for the future." Chevron also said that on Thursday the Federal Trade Commission lifted its earlier restriction, clearing the way for John Hess to join its board of directors, subject to board approval. Chevron announced its deal for Hess in October 2023, less than two weeks after Exxon Mobil said that it would acquire Pioneer Natural Resources for about USD 60 billion. Chevron said at the time that the acquisition of Hess would add a major oil field in Guyana as well as shale properties in the Bakken Formation in North Dakota. "Given the significant value we've created in the development of the Guyana resource, we believed we had a clear duty to our investors to consider our preemption rights to protect the value we created through our innovation and hard work at a time when no one knew just how successful this venture would become," Exxon Mobil said Friday. "We welcome Chevron to the venture and look forward to continued industry-leading performance and value creation in Guyana for all parties involved." Chevron's stock rose more than 3 per cent before the market open, while shares of Hess surged more than 7 per cent. Exxon's stock climbed slightly.

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