Today, Chevron Corporation announced that it has completed its acquisition of Hess Corporation following a landmark legal battle against its larger rival Exxon Mobil.
The decision marks a significant victory for Chevron, concluding a period of strategic uncertainty that negatively affected its stock and raised concerns about the company’s due diligence.
Chevron CEO Mike Wirth stated he would withdraw from the deal if they lost the legal case.
In a letter to shareholders the company wrote: “On July 17, 2025, the Federal Trade Commission (FTC) lifted its earlier restriction, clearing the way for John Hess to join Chevron’s Board of Directors, subject to Board approval.”
Wirth told investors, “This merger of two great American companies brings together the best in the industry. The combination enhances and extends our growth profile well into the next decade, which we believe will drive greater long-term value to shareholders. Additionally, I’m pleased with the FTC’s unanimous decision. John is a respected industry leader, and our Board would benefit from his experience, relationships and expertise.”
Chevron Chief Financial Officer Eimear Bonner commented, “This accretive transaction is expected to drive significant free cash flow and production growth into the 2030s. We are quickly integrating our two companies and expect to achieve $1 billion in annual run-rate cost synergies by the end of 2025. All of this should enable even higher returns to shareholders over the long-term.”
Former Hess Corporation CEO John Hess said, “We are proud of everyone at Hess for building one of the industry’s best growth portfolios including Guyana, the world’s largest oil discovery in the last 10 years, and the Bakken shale, where we are a leading oil and gas producer. The strategic combination of Chevron and Hess creates a premier energy company positioned for the future.”
Chevron will present updated long-term financial and operational guidance, including the impact of the $53 billion Hess acquisition, at its Investor Day in New York City on November 12.
By CEO NA Editorial Staff
