Hess Corporation is optimistic about its merger with Chevron, asserting confidence that the deal will overcome arbitration hurdles and close by the third quarter of 2025. The merger, valued for its strategic alignment, aims to create a leading oil and gas company positioned for the energy transition.
Hess’s Chief Executive Officer has emphasized the company’s strength in production and cash flow growth, driven by assets in Guyana and the Bakken. Hess holds 30% of the shares in Guyana’s Stabroek Block.
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“We were fully prepared to go it alone, but Chevron was the only merger partner where we felt we were building a premier company,” CEO John Hess said at the Goldman Sachs Energy CleanTech & Utilities Conference. He highlighted Chevron’s financial strength, including a diversified portfolio, strong balance sheet, and high cash returns, as key benefits.
Following Chevron’s announcement of its agreement to acquire Hess, Exxon and CNOOC raised a dispute, arguing that they had pre-emptive rights to Hess’s 30% stake in the Stabroek Block before Hess could be sold to Chevron. Chevron and Hess believe the pre-emption clause in the Stabroek Block joint operating agreement does not apply to their merger.
“The words on paper are very clear,” the CEO stated, expressing confidence in a favorable outcome.
Memorials have been exchanged, and the hearing is set for May, according to Hess, with a decision expected by late August or September.
Shareholder approval is already secured, and Hess is preparing for integration once arbitration concludes. “We’re very confident,” the CEO reiterated, adding that the timeline for resolution remains on track.
