Chevron Acquires $2.3 Billion Hess Stake Amid Arbitration Confidence

Deal News | Mar 17, 2025 | EIN

Chevron Acquires $2.3 Billion Hess Stake Amid Arbitration Confidence

Chevron Corp has acquired a nearly 5% stake in Hess Corp for approximately $2.3 billion. This move is intended to demonstrate Chevron's confidence in winning an ongoing arbitration with Exxon Mobil over the acquisition of Hess, which has been stalled. The dispute involves a right of first refusal claimed by Exxon over a 30% stake in Guyana’s rapidly expanding oil project, with arbitration proceedings scheduled for May and a decision expected by September. Chevron's acquisition of Hess shares at a discount from the implied takeover price provides a strategic advantage, as the acquisition price per Hess share exceeds current market prices. Chevron's purchase additionally complements its ongoing strategy of repurchasing its own stock, marked by a $15.2 billion buyback last year.

Sectors

  • Oil & Gas
  • Mergers & Acquisitions

Geography

  • United States – The primary companies involved, Chevron, Hess, and Exxon Mobil, are based in the United States, and the article elucidates the strategic moves within the context of US-based entities.
  • Guyana – The dispute between Chevron and Exxon over Hess involves a significant oil project located in Guyana, making this region a focal point of the dispute.

Industry

  • Oil & Gas – The article centers around Chevron and Hess, major entities in the Oil & Gas sector, particularly highlighting the disputes over rights to a significant oil project in Guyana.
  • Mergers & Acquisitions – The article discusses the strategic acquisition of Hess shares by Chevron amidst a larger merger deal with Hess, involving arbitration with Exxon Mobil, highlighting M&A activities.

Financials

  • $2.3 billion – The value of the nearly 5% stake in Hess Corp purchased by Chevron.
  • $53 billion – The full value of the all-stock takeover offer made by Chevron for Hess in 2023.
  • $15.2 billion – The amount of Chevron's stock buyback in the previous year.

Participants

NameRoleTypeDescription
Chevron Corp.BuyerCompanyOne of the world's largest oil and energy companies, currently involved in the purchase of Hess shares as part of a strategic acquisition.
Hess Corp.TargetCompanyAn independent energy company involved in oil and natural gas exploration and production, which Chevron is attempting to acquire.
Exxon Mobil Corp.CompetitorCompanyA multinational oil and gas corporation claiming the right of first refusal in the acquisition of Hess's stake in the Guyana oil project.