Energy News — Chevron Purchases Hess Oil In A Move To Compete With Exxon’s Top Position
News about mega-deals in global energy markets just keeps on coming. It was just announced on 23 October 2023 that two of the biggest US oil and gas producers, Chevron and Hess, will merge in a deal reportedly worth $53 billion.
You can access the link above to watch a full CNBC interview about the merger deal with CEOs of Chevron and Hess. Interestingly, Hess CEO John Hess opens up the discussion by sharing a personal story about his father driving a truck delivering fuel oil during the Great Depression in the United States; but he swiftly shifts the discussion to the company’s shareholders:
“We’ve always been guided by making the right long-term decisions for our shareholders. This is the right long-term decision for our shareholders…I think what’s important to understand is that Hess brings growth to Chevron, growth to resource, growth to production, growth in cash flow, and Chevron brings us financial strength.”
Another intersting note is that right when Hess was starting to mention the company’s position on the energy transition, the CNBC analyst/interviewer basically cut him off to ask more about the company’s strategy.
This speaks to how investors and reporters are viewing oil and gas company’s thoughts on energy transition these days. There’s not a lot of talk about that right now, especially in the context of US oil and gas producers.
See all of the details about the acquisition from CNBC below:
The outcome of this merger deal comes in less than the competitor’s latest mega-merger deal — Exxon Mobil acquired Pioneer Natural Resources in a $60 billion deal to make it the top producer in the Permian Basin.
It’s a big deal for global energy markets, nevertheless, since this deal obviously signals to the markets that there is a lot of competition for investments in the oil and gas markets, both globally and in the United States. Just look at Shell’s 27-Year LNG supply deal with Qatar to understand more about the global market trends.
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