Chevron has recently finalized its acquisition of Hess Corporation, a $53 billion megadeal that positions Chevron as a leading energy company with expanded operations in Guyana’s Stabroek Block, the Bakken shale, the U.S. Gulf, and Southeast Asia[1][4][5]. The merger makes Chevron the largest acreage holder in the Gulf of America and strengthens its footprint in Southeast Asia, particularly Malaysia and Thailand[5].
The deal saw Hess CEO John Hess join Chevron’s board, and Hess shareholders received 1.0250 Chevron shares per Hess share. Chevron expects the deal to be accretive to cash flow per share starting in 2025, targeting $1 billion in annual run-rate cost synergies by the end of the year and setting capital expenditures between $19 and $22 billion[4]. Integration is underway, including merging Hess’s exploration team to spark innovation and new discoveries, especially in Guyana and other South American areas. About 650 Hess jobs are being cut, but Chevron’s CEO emphasized the value of Hess’s geologists for future exploration[3].
Chevron’s strategic focus remains balanced between traditional energy and renewables. The company’s 38-year history of dividends—with $5.5 billion returned to shareholders in Q2 2025—underlines its inflation-resistant status. Investments in renewables and carbon capture continue to attract investor confidence, helping drive a 10% rise in Chevron stock in 2025. UBS assigns Chevron a $197 price target, citing its balanced approach and adaptability to market trends[2].
Legal disputes over ExxonMobil’s claimed right of first refusal to Hess’s Guyana stake have now been resolved, enabling Chevron to start integrating operations and assets in the region. The Stabroek Block, which contains an estimated 11 billion barrels of recoverable resources, remains a key asset, with production targets set to nearly double by 2030[1].
Beyond the merger, Chevron continues to invest in shale growth opportunities in Argentina and is advancing new oil extraction techniques in the Permian Basin, designed to save time and money. Chevron’s president has publicly outlined strategies that have transformed the company’s previously volatile shale business into a source of steady profit[6].
References
- [1] Chevron Prepares to Close Hess Acquisition – TankTerminals
- [2] Chevron’s Strategic Dividend Growth and Renewable Investments Drive 10% Stock Rise in 2025
- [3] Chevron to Merge Hess Exploration Team After $53B Deal – TT
- [4] Chevron closes Hess acquisition after legal dispute with ExxonMobil
- [5] 4 places the chevron and hess merger will have the most impact
- [6] Newsroom — Chevron