Chevron Corp. (Chevron) has completed its acquisition of Hess Corp. (Hess) following the satisfaction of all necessary closing conditions, including a favorable arbitration outcome regarding Hess’ offshore Guyana asset. On July 17, 2025, the Federal Trade Commission (FTC) lifted its earlier restriction, clearing the way for John Hess to join Chevron’s board of directors, subject to board approval.
The acquisition gives Chevron assets in Guyana and US Bakken, adding to its international portfolio. Chevron now owns a 30% position in the Guyana Stabroek Block, which has more than 11 billion barrels of oil equivalent discovered recoverable resource; 463,000 (187,369 ha) of inventory in the Bakken; complementary assets in the Gulf of Mexico with 31,000 boe/d equivalent per day; and natural gas assets in Southeast Asia with 57,000 boe/d equivalent per day.
“This accretive transaction is expected to drive significant free cash flow and production growth into the 2030s,” added chief financial officer Eimear Bonner. “We are quickly integrating our two companies and expect to achieve US$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.”
Under the terms of the merger agreement, Hess shareholders will receive 1.0250 shares of Chevron for each Hess share. As a result, Chevron intends to issue approximately 301 million shares of common stock out of treasury to Hess stockholders in connection with the transaction. The 15.38 million shares of Hess common stock (which were acquired in open market transactions) beneficially owned by Chevron immediately prior to the closing were cancelled for no consideration.
Chevron expects the transaction to be accretive to cash flow per share in 2025 after achieving synergies and start-up of the fourth floating production storage and offloading vessel in Guyana. The combined company’s capital expenditures budget is expected to be between US$19 and US$22 billion. After closing, Chevron will target to sustain a double-digit return on capital employed at mid-cycle prices. The transaction is expected to achieve run-rate cost synergies of US$1 billion by the end of 2025.
