Chevron has purchased approximately 4.99% of Hess Corp.’s common shares this year, acquiring 15,380,000 shares between January and March, totaling an estimated $2.3 billion based on Hess’ Monday closing price of $150.45.
This strategic investment, disclosed in a filing on Monday, underscores Chevron’s confidence in its pending acquisition of Hess.
This move follows Chevron’s agreement in October 2023 to acquire Hess in an all-stock transaction valued at $53 billion.
The acquisition, which aims to bolster Chevron’s position in the lucrative oil-rich Stabroek block off the coast of Guyana, has already been approved by U.S. regulators and shareholders.
However, the deal has faced legal challenges from Hess’ partners in Guyana—ExxonMobil and CNOOC. Both companies have filed a court challenge, prompting a three-judge arbitration panel to review the case later this May.
Under the terms of the agreement, Chevron will exchange 1.025 of its shares for each Hess share. If the deal were to close as of Monday, Hess shareholders would receive $162.69 per share, based on Chevron’s closing price of $158.72.
