U.S. energy major Chevron expects a hit of $200 million to $400 million in Q3 due to the Hess deal, adding $1 billion to $1.25 billion in capital spending this quarter. Newly acquired assets are expected to produce 450,000 to 500,000 barrels of oil equivalent per day, impacting Chevron’s global production.

Chevron closed its $55 billion acquisition of Hess in July after a legal battle with Exxon Mobil. Adjusted earnings are expected to be $50 million to $150 million in Q3. The deal, part of a wave of industry consolidation, aimed to counter Exxon’s growing position in the Permian basin.

The drawn-out dispute over Hess’s stake in Guyana’s Stabroek block delayed the deal announcement in October 2023. Chevron is also cutting up to 20% of its workforce, facing safety issues, and dealing with geopolitical challenges in Venezuela.

Overall, the acquisition of Hess marks a significant move for Chevron in the oil industry, adding valuable assets and production capacity to its portfolio amidst ongoing operational challenges and industry consolidation.

Read more at Yahoo Finance: Chevron expects up to $400 million quarterly impact from Hess deal