Chevron has announced its acquisition of Hess Corp. in a deal valued at $53 billion. This acquisition marks another move by major U.S. oil companies to utilize their recent significant profit increases to acquire smaller competitors.
The Chevron-Hess deal follows Exxon Mobil’s announcement of its plan to acquire Pioneer Natural Resources for approximately $60 billion just two weeks earlier.
Chevron’s acquisition of Hess includes a substantial oil field in Guyana and shale properties in the Bakken Formation located in North Dakota. The deal will be financed through stock, and when factoring in debt, Chevron values it at $60 billion.