Chevron acquires shale oil producer Hess for $53 billion – Kommersant
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Chevron Corp. announced on the purchase of another American oil producing company, Hess Corp., for $53 billion. This amount will be paid entirely in Chevron shares. Hess shareholders will receive 1.025 Chevron shares for each Hess share. Thus, Chevron valued each Hess share at $171, and the company itself, including its debt obligations, at $60 billion.
This is the second major deal on the American oil market over the past couple of weeks. October 11 ExxonMobil reported on the purchase of Pioneer Natural Resources for $59.5 billion.
As with ExxonMobil, Chevron is trying to strengthen its position in the shale market through its purchase. Hess is a leading oil producer in offshore Guyana, the Bakken shale play in North Dakota, and the Gulf of Mexico and Gulf of Thailand.
The parties hope to close the deal in the first half of 2024. It has been approved by the boards of directors of both companies, but requires approval from Hess shareholders and regulators.
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