Hess Corporation
2024
$53.0B
Why
Chevron announced its all-stock acquisition of Hess Corporation in October 2023, with the transaction motivated primarily by Hess's 30 percent working interest in the Stabroek Block offshore Guyana — home to one of the most significant oil discoveries of the 21st century with estimated recoverable resources exceeding 11 billion barrels. The acquisition would also add Hess's substantial Bakken shale production in North Dakota, Gulf of Mexico deepwater assets, and Southeast Asian natural gas production to Chevron's portfolio, providing significant diversification and production growth.
Impact
The Hess acquisition, once completed, would represent a transformative expansion of Chevron's international upstream portfolio and give the company access to world-class, low-cost deepwater production in Guyana for decades to come. The all-stock structure of the deal preserved Chevron's cash and balance sheet strength while giving Hess shareholders equity participation in the combined company's future performance. However, ExxonMobil and CNOOC's assertion of preemption rights over the Guyana asset — the deal's primary strategic rationale — introduced significant uncertainty about the ultimate value Chevron would receive.
Outcome
As of mid-2025, the Hess acquisition was substantially complete, with shareholders of both companies having approved the transaction, but the arbitration proceedings regarding ExxonMobil and CNOOC's preemption claims over the Guyana interest were ongoing. The resolution of this arbitration will be the defining determinant of whether the Hess deal is judged a strategic success or a costly miscalculation. In the meantime, Chevron is integrating Hess's other assets — the Bakken, Gulf of Mexico, and Southeast Asia operations — into its portfolio and beginning to capture operational operational efficiencies from the combination.