On October 23, 2023, Chevron Corporation announced its acquisition of Hess Corporation in an all-stock deal valued at USD 53 billion (approximately CAD 72 billion), with a total enterprise value of USD 60 billion (approximately CAD 81.5 billion), including debt. Hess shareholders will receive 1.025 Chevron shares for each Hess share. This acquisition will strengthen Chevron’s portfolio, adding Hess’ Stabroek block in Guyana and Bakken shale assets, boosting production and free cash flow growth.

Chevron operates in Canada through its subsidiary, Chevron Canada Limited, involved in offshore and oil sands projects. Hess has no direct operations in Canada, but the acquisition is expected to indirectly impact Canada’s energy sector by bolstering North American energy security and production.

The deal is expected to close in the first half of 2024 and aimed for USD 1 billion (approximately CAD 1.36 billion) in cost synergies within a year. Chevron planned to issue around 317 million shares as part of the transaction and anticipated boosting dividends and share repurchases post-closing.

Morgan Stanley and Evercore advised Chevron, with Paul, Weiss, Rifkind, Wharton & Garrison LLP as legal counsel. Goldman Sachs and J.P. Morgan advised Hess, with Wachtell, Lipton, Rosen & Katz serving as legal counsel.