HOUSTON, Texas, July 18, 2025 — Chevron Corporation (NYSE: CVX) has successfully completed its acquisition of Hess Corporation (NYSE: HES), following the fulfillment of all necessary closing conditions. This includes a favorable arbitration outcome concerning Hess’ valuable offshore asset in Guyana. The newly formed company now boasts one of the most favorable and distinct portfolios in the energy sector, featuring leading positions in vital energy markets globally and a high cash margin production profile.
On July 17, 2025, the Federal Trade Commission (FTC) lifted its previous restrictions, allowing John Hess to join Chevron’s Board of Directors, pending board approval. “This merger of two great American companies brings together the best in the industry,” stated Chevron Chairman and CEO Mike Wirth. “The combination not only enhances our growth profile into the next decade but is poised to deliver greater long-term value to our shareholders. I’m also pleased with the FTC’s unanimous decision. John is a respected industry leader, and our Board will benefit from his experience and expertise.”
Former Hess Corporation CEO John Hess expressed pride in the achievements of Hess, highlighting its robust growth portfolio, which includes Guyana—recognized as the largest oil discovery in the past decade—and the Bakken shale, where Hess has emerged as a leading oil and gas producer. “The strategic combination of Chevron and Hess creates a premier energy company well-positioned for the future,” he remarked.
The acquisition brings world-class assets into Chevron's diversified global portfolio, solidifying its leadership in areas such as the Permian Basin, Gulf of America, DJ Basin, Kazakhstan, Eastern Mediterranean, and Australia. Chevron now holds a 30% stake in the Guyana Stabroek Block, which boasts over 11 billion barrels of oil equivalent in discovered recoverable resources. Additionally, the company has 463 thousand net acres in the Bakken and significant assets in natural gas production across Southeast Asia.
Chief Financial Officer Eimear Bonner stated that this accretive transaction is projected to significantly enhance free cash flow and production growth extending into the 2030s. “We are swiftly integrating our two companies and anticipate achieving $1 billion in annual run-rate cost synergies by the end of 2025. This integration will facilitate even higher returns to our shareholders in the long run,” she noted.
Under the merger agreement, Hess shareholders will receive 1.0250 shares of Chevron for each Hess share, resulting in Chevron issuing approximately 301 million shares of common stock to Hess stockholders. Additionally, 15.38 million shares of Hess common stock owned by Chevron prior to the merger will be canceled without consideration.
Chevron anticipates several transaction benefits, including:
Accretive cash flow per share growth and extended growth into the 2030s. Projected capital expenditures between $19 and $22 billion. Aiming for a double-digit Return on Capital Employed (ROCE) at mid-cycle prices. Expected run-rate cost synergies of $1 billion by the end of 2025.Chevron plans to provide updated long-term financial and operational guidance reflecting the acquisition of Hess during its Investor Day in New York City on November 12.
Chevron is recognized as one of the world’s leading integrated energy companies, committed to providing affordable, reliable, and sustainable energy solutions essential for human progress. The company is involved in producing crude oil and natural gas, manufacturing transportation fuels, lubricants, and petrochemicals, while also developing innovative technologies that enhance its operational efficiency and industry standards. Chevron aims to expand its oil and gas business, reduce the carbon intensity of its operations, and invest in renewable energy sectors such as carbon capture, hydrogen, and power generation for data centers.
For more information, visit www.chevron.com.
