Chevron has officially closed its massive $55 billion acquisition of Hess, sealing the deal just days after winning a pivotal arbitration battle against Exxon Mobil. The long-awaited transaction not only strengthens Chevron’s global footprint, but also grants it access to one of the world’s most lucrative oil finds in decades—the Stabroek Block off Guyana, which holds over 11 billion barrels of recoverable oil.
The deal marks a bold step by Chevron CEO Mike Wirth, whose strategy to revive the company’s underwhelming performance hinged heavily on this acquisition. Shares of Chevron rose 3% in premarket trading following the news, while Hess stock jumped 7%. Exxon’s shares dipped slightly as the dust settled on the arbitration verdict.
How are Chevron, Hess, and Exxon stocks performing today?
Chevron (CVX) shares are trading at $152.19, up $0.81 or +0.54% for the day. The stock saw a pre-market boost after Chevron officially closed its $53 billion acquisition of Hess. Investors reacted positively to the company’s legal win over ExxonMobil, which cleared the final hurdle in securing oil assets in Guyana. Earlier in the session, CVX hit an intraday high of $157.70 before settling slightly lower.
Hess Corporation (HES) is also in the green, with shares priced at $148.97, gaining $1.45 or +0.98%. The stock is reflecting the deal premium now that Chevron has completed the acquisition. Although Hess is now effectively a part of Chevron, its shares continued trading independently during the final stages of the merger transition.
ExxonMobil (XOM), on the other hand, slipped to $110.89, down $0.77 or –0.69%. The dip comes after the International Chamber of Commerce ruled against Exxon’s claims in its arbitration battle with Chevron over Hess’s Guyana stake. The unfavorable ruling has momentarily put pressure on XOM stock, even though the broader energy sector remains stable.
What happened between Chevron, Hess, and Exxon?
The long-awaited merger between Chevron and Hess hit a legal snag earlier this year when ExxonMobil attempted to block the deal. Exxon claimed it had a right of first refusal over Hess’s 30% stake in the oil-rich Stabroek Block in Guyana—one of the world’s most valuable offshore oil discoveries.
But on Thursday night, a panel from the International Chamber of Commerce (ICC) ruled in Chevron’s favor, dismissing Exxon’s claim. That ruling gave Chevron the green light to officially close the deal just hours later on Friday, July 18, 2025.
Why this Chevron-Hess deal matters for the oil industry
This isn’t just any acquisition. By taking over Hess, Chevron now gains access to a massive share of Guyana’s offshore oil reserves—an area expected to be a key player in global energy production for decades. The Stabroek Block alone is estimated to hold more than 11 billion barrels of oil equivalent.
Beyond Guyana, Chevron also gains valuable shale assets in the Bakken formation, further strengthening its upstream portfolio across the Americas. The company expects to generate $1 billion in synergies per year from the deal by the end of 2025.
How did Chevron stock react?
Investors cheered the clarity. Chevron stock (CVX) jumped as much as 4% in pre-market trading, while Hess stock (HES) surged over 7% as the market priced in the completed deal and its long-term value potential.
By mid-day, Chevron shares were trading around $151, slightly off the highs but still above Thursday’s close. Analysts say the arbitration win removed a major uncertainty that had been hanging over the stock for months.
“The ruling eliminates a significant overhang on the Chevron-Hess deal,” said Raymond James analyst Justin Jenkins. “It boosts confidence in Chevron’s long-term growth outlook, especially with its strategic expansion in Guyana.”
Why was Chevron’s acquisition of Hess delayed for over a year?
The major hold-up in Chevron’s acquisition of Hess stemmed from a heated legal dispute with Exxon Mobil and China’s CNOOC, Hess’ partners in the Guyana venture. Both companies claimed they held pre-emptive rights—a legal option to buy Hess’ stake before any third party could—based on a joint operating agreement.
That battle ended after an International Chamber of Commerce (ICC) arbitration panel ruled in favor of Chevron, allowing the company to proceed with the transaction. Exxon, while voicing disagreement with the ICC’s interpretation, said it respects the arbitration process.
“We believed we had a clear duty to our investors to consider our preemption rights to protect the value we created,” Exxon said in a statement following the ruling.
What does Chevron gain from the Stabroek Block in Guyana?
The Stabroek Block, located offshore Guyana, is at the heart of the Chevron-Hess deal. This massive oil reserve has transformed Guyana into one of the fastest-growing economies in the world and continues to produce strong earnings.
In 2023, Hess reported $3.1 billion in earnings from Guyana alone, up from $1.9 billion in 2022. The site has already produced more than 11 billion barrels of recoverable oil and is expected to continue delivering high returns for years to come.
Chevron now joins Exxon and CNOOC in the lucrative Guyana oil venture. Despite the legal tussle, Exxon CEO Darren Woods told CNBC that the issue wasn’t personal:
“This was never a Chevron thing. This was more about getting the contracts enforced the way they were intended,” Woods said.
How did Chevron prepare for such a fast post-verdict closing?
Even before the ruling was finalized, Chevron had quietly made detailed preparations to close the Hess deal quickly. According to Reuters, the company had plans to finalize the transaction within 48 hours of the arbitration decision.
Chevron and Hess’ IT teams had been collaborating for months to streamline integration. Employees at Hess were also briefed on post-deal protocols and given options to request severance packages after the acquisition.
Is Guyana the new Saudi Arabia?
Chevron’s stake in Guyana is arguably the biggest prize in this acquisition. Once a minor player in the energy world, Guyana is quickly emerging as one of the top oil-producing countries, thanks to its vast offshore reserves and favorable regulatory environment.
Chevron now joins Exxon and China’s CNOOC as key stakeholders in Guyana’s energy boom. Production from the Stabroek Block is already ramping up and is expected to surpass 1.2 million barrels per day by 2027.
What impact will this have on Chevron’s future earnings?
This acquisition could be a game changer for Chevron. While the company’s adjusted earnings fell to $18.3 billion in 2024, down from $24.7 billion in 2023, analysts believe the Guyana asset could significantly boost Chevron’s long-term cash flow and production output.
With oil prices volatile and the energy transition looming, Chevron is betting big on high-margin oil projects like the one in Guyana to secure steady earnings and shareholder value.
Mike Wirth, Chevron’s CEO, called the merger:
“A union of two great American companies bringing together the best in the industry.”
What lessons does this legal battle offer the oil industry?
The arbitration case has stirred deep conversations within the global oil community. Legal experts say the ruling highlights the importance of precise language in joint operating agreements, especially when billions of dollars are at stake.
The dispute centered around a few words in the confidential agreement between Exxon, Hess, and CNOOC. As CNBC reported, Exxon is now reviewing how to revise its contracts to avoid future misunderstandings.
This legal precedent could influence future mega-deals and how pre-emptive rights are interpreted in oil exploration partnerships around the world.
With the Hess acquisition finally complete, Chevron now holds a powerful position in one of the world’s richest oil regions. The legal battle with Exxon may be over, but its implications could reshape future energy deals for years to come. The $55 billion Chevron-Hess deal not only underscores the value of Guyana’s oil but also reflects the shifting dynamics of global oil leadership in the coming decade.
Source: Economic Times