Key takeaways:
- Chevron and Hess Corp. have announced a $53 billion merger.
- The acquisition will add a major oil field in Guyana and shale properties in the Bakken Formation in North Dakota to Chevron’s portfolio.
- The Chevron-Hess deal is the latest in a series of mergers and acquisitions in the energy sector, and analysts expect more deals to follow as oil prices remain high.
Oil giants Chevron and Hess Corp. have announced a $53 billion merger, the second major oil deal this month as energy prices surge.
The acquisition of Hess Corp. by Chevron will add a major oil field in Guyana as well as shale properties in the Bakken Formation in North Dakota to Chevron’s portfolio. The deal is valued at $60 billion, including debt.
The merger follows Exxon Mobil’s announcement two weeks ago that it would acquire Pioneer Natural Resources for about $60 billion.
Crude prices have been on the rise this year, jumping 9% and hovering around $90 per barrel for about two months. This surge in energy prices has prompted major oil producers to seize the initiative and make major acquisitions.
The Chevron-Hess deal is the latest in a series of mergers and acquisitions in the energy sector. Analysts expect more deals to follow as oil prices remain high and major producers look to expand their portfolios.
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