Chevron Corp.’s acquisition of Hess Corp. can move forward following a special meeting of Hess stockholders on Tuesday. At the meeting, a majority of the outstanding shares of Hess common stock were voted in favor of the adoption of the merger agreement, Hess Corp. said.
“We are very pleased that the majority of our stockholders recognize the compelling value of this strategic transaction and look forward to the successful completion of our merger with Chevron,” CEO John Hess said. “Together we will be positioned as a premier integrated energy company, with the leadership, asset portfolio and financial resources to deliver significant shareholder value for years to come.”
No approval of Chevron stockholders is required in connection with the merger, but completion of the merger remains subject to other closing conditions. Chevron and Hess are working to complete the merger “as soon as possible,” Hess Corp. said.
In October 2023, Chevron Corp. entered into a definitive agreement with Hess Corp. to acquire all of the outstanding shares of Hess in an all-stock transaction valued at $53 billion, or $171 per share based on Chevron’s closing price on Oct. 20, 2023. Under the terms of the agreement, Hess shareholders will receive 1.025 shares of Chevron for each Hess share. The total enterprise value, including debt, of the transaction is $60 billion.
The acquisition of Hess upgrades and diversifies Chevron’s portfolio, the oil company said at the time. The Stabroek block in Guyana is an extraordinary asset with industry leading cash margins and low carbon intensity that is expected to deliver production growth into the next decade, Chevron said. Hess’ Bakken assets add another leading U.S. shale position to Chevron’s DJ and Permian basin operations and further strengthen domestic energy security. The combined company is expected to grow production and free cash flow faster and for longer than Chevron’s current five-year guidance. In addition, John Hess is expected to join Chevron’s Board of Directors.
Chevron is one of the world’s leading integrated energy companies. It produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance its business and the industry. It also is a partner in ExtraMile Convenience Stores, a Pleasanton, California-based chain of more than 1,000 c-stores across seven Western states.
- ExtraMile Convenience Stores is No. 8 on CSP’s 2024 Top 40 Update to the 2023 Top 202 ranking of U.S. c-store chains by store count. Watch for the full 2024 Top 202 ranking in the June issue of CSP magazine and in CSP Daily News.
Hess Corp., a former convenience retailer that sold its store assets to Speedway in 2014, is a leading global independent energy company based in New York and engaged in the exploration and production of crude oil and natural gas with leading positions offshore Guyana, the Bakken Shale Play in North Dakota, the deepwater Gulf of Mexico and the Gulf of Thailand.
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