Chevron has agreed to buy Hess for US$53 billion in stock to gain a bigger U.S. oil footprint and a stake in rival Exxon Mobil.

Chevron's recent deal and Exxon's US$60 billion acquisition announced earlier this month are set to significantly extend the oil and gas production capacities of the top two U.S. producers. The merger involving Hess, PDC, and Noble will boost Chevron's overall oil and gas output to approximately 3.7 million barrels per day (BPD). This agreement will increase Chevron's shale production by 40% to 1.3 million BPD, making it comparable to Exxon's anticipated shale output after its Pioneer Natural Resources (PXD.N) acquisition. Moreover, this collaboration will expand Chevron's oil production in less risky regions, including the U.S. Gulf of Mexico and the Bakken shale in North Dakota. As part of the deal, Chevron gains a 30% stake in Exxon and CNOOC's Stabroek oil block in Guyana, a region expected to produce over 1.2 million BPD by 2027, making Guyana one of the world's rapidly growing oil provinces.

Hess received advisory support from Goldman Sachs, while Chevron was advised by Morgan Stanley.