Chevron Corp (NYSE: CVX) unveiled plans to buy Hess Corp (NYSE: HES) on Monday. Executives from the both oil giants discussed details of the deal shortly after it was announced.
What Happened: Chevron entered into a definitive agreement to acquire Hess in an all-stock transaction valued at $53 billion. The San Ramon, California-based company will pay $171 per share for the acquisition, and Hess shareholders will receive 1.025 shares of Chevron for each Hess share held.
The agreement extends Chevron's production and free cash flow growth outlook into the 2030s and supports higher distributions for shareholders.
"Hess brings growth to Chevron — growth in resource, growth in production, growth in cash flow — and Chevron brings us financial strength," Hess CEO John Hess said on CNBC's "Squawk On The Street."
"In terms ...