HESM - Prediction: Given Its History Chevron Will Buy This High-Yield Dividend Stock Next
2023-10-27 06:23:00 ET
Chevron (NYSE: CVX) quickly responded to ExxonMobil's megamerger with Pioneer Natural Resources with a massive deal of its own. It agreed to acquire Hess (NYSE: HES) for around $60 billion. These deals will likely lead to more consolidation in the sector.
I expect Chevron to continue making deals. It also bought PDC Energy for around $7.6 billion earlier this year. Given its history, its next acquisition will likely be Hess Midstream (NYSE: HESM) . Here's why that deal would fit Chevron's recent pattern.
Chevron has a long history of making deals. Before Hess, its most notable deal was acquiring Texaco in 2001 for $38.7 billion. It has also made several smaller deals, including buying Noble Energy for $13 billion in 2020.
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Prediction: Given Its History, Chevron Will Buy This High-Yield Dividend Stock Next