Chevron is confident it will close acquisition of Hess, potentially doubling free cash flow.

From Nasdaq: 2025-03-19 18:41:00

Chevron agreed to acquire Hess for $53 billion in late 2023, but the deal is on hold due to a dispute with ExxonMobil over Hess’ partnership in offshore Guyana. The oil giants are battling in court, with Chevron confident it will win. The acquisition would enhance Chevron’s production and cash flow growth outlook.

The dispute centers around Hess’ valuable stake in the Stabroek block in Guyana, which produces high-margin oil. Chevron believes the acquisition of Hess will double its free cash flow by 2027. The arbitration panel is expected to rule in May.

Chevron’s strategic acquisition of Hess includes assets in the Bakken, Gulf of Mexico, and Southeast Asia, diversifying and strengthening its portfolio. The company is confident it will win the arbitration case and close the deal, having purchased nearly 5% of Hess’ stock. The move could save Chevron money if the deal goes through.



Read more at Nasdaq: Chevron’s High Confidence Is Driving It to Wager Over $2 Billion That It Will Close This Needle-Moving Acquisition