It’s the second big buyout among major producers this month as oil prices surge - following Exxon Mobil's $60 billion deal for Irving-based Pioneer Natural...
Just like Exxon Mobil, oil giant Chevron is making a big move to consolidate energy sector players as oil prices surge.Chevron is buying Hess Corp. for $53 billion and it’s not even the biggest acquisition in the energy sector this month as major producers seize the initiative while oil prices surge.
Chevron said Monday that the acquisition of Hess adds a major oil field in Guyana as well as shale properties in the Bakken Formation in North Dakota.Guyana is a South American 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.
Chevron is paying for Hess with stock. Hess shareholders will receive 1.0250 shares of Chevron for each Hess share. Including debt, Chevron valued the deal at $60 billion.And even with alarms being raised over climate change after a summer of record-smashing temperatures, elevated energy prices have driven more exploration and more drilling, and big payouts for investors.There have been a number of acquisitions focused on U.S.
The boards of both Chevron and Hess approved the deal announced Monday after six months of negotiations. The sale is targeted to close in the first half of next year. It still needs approval by Hess shareholders.
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Chevron to acquire Hess Corp. in $53 billion all-share dealBarbara Kollmeyer is based in Madrid, where she leads MarketWatch's pre-markets coverage of financial markets and writes the Need to Know column. She has worked in London and Los Angeles for MarketWatch previously. Follow her on Twitter bkollmeyer.
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