Chevron Acquires 5% Stake in Hess as Retail Sentiment Boosts
Deal News | Mar 17, 2025 | EIN
Chevron Corporation has purchased nearly a 5% equity stake in Hess Corporation, amounting to 15.38 million shares, for approximately $2.3 billion as of Monday's market price. This acquisition follows the definitive merger agreement established in October 2023, where Chevron outlined intentions to acquire the entirety of Hess’s outstanding shares through an all-stock transaction valued at $53 billion, or $171 per share. The recent purchase indicates Chevron's confidence in completing this merger, which will enrich and diversify its portfolio through Hess's Stabroek block in Guyana. The transaction has sparked arbitration with Exxon, who claims a preemptive right over Hess’s Guyana stakes, with a hearing scheduled for May and an expected outcome in September. This announcement positively impacted retail sentiment on Stocktwits, with Chevron and Hess trading upwards in 2025.
Sectors
- Energy
- Mergers and Acquisitions
Geography
- United States – Both Chevron Corporation and Hess Corporation are headquartered and primarily operate in the United States.
- Guyana – The Stabroek block in Guyana, a significant asset in the merger, highlights geographical relevance.
Industry
- Energy – The acquisition pertains to the oil and gas industry, involving major players such as Chevron Corporation and Hess Corporation.
- Mergers and Acquisitions – Chevron's acquisition of Hess's stake and the pending merger reflect significant M&A activity in the energy sector.
Financials
- $2.3 billion – Value of Chevron's recent acquisition of a 5% stake in Hess.
- $53 billion – The total valuation of the intended all-stock transaction to acquire all outstanding shares of Hess.
- $171 per share – The price agreed per share in Chevron's merger agreement with Hess.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Chevron Corporation | Bidding Company/Buyer | Company | An American multinational energy corporation that has entered into an agreement to acquire Hess Corporation. |
| Hess Corporation | Target Company | Company | An American global independent energy company being acquired by Chevron. |
| ExxonMobil | Other Company | Company | Filed for arbitration claiming a right of first refusal over Hess’s Guyana stake. |