Chevron Deal Makes Billionaire Hess Family Even Richer
The post Chevron Deal Makes Billionaire Hess Family Even Richer appeared on BitcoinEthereumNews.com. John Hess in 2019. Getty Images Oil scion John Hess will now control nearly $5 billion in Chevron stock — but not a lot of it actually belongs to him. The Hess family is selling out on top. At least that’s how it looks from the oil giant’s surging shareprice, up 100% in two years, to a record high. Now add to that the roughly 20% premium that Chevron is set to pay in its $53 billion deal announced today to acquire Hess. It’s a 100% equity deal; Hess shareholders will get 1.025 shares of Chevron for each of theirs. The big prize in the Hess portfolio is in the waters offshore Guyana, where it has a 30% interest in an array of big deepwater discoveries alongside ExxonMobil XOM . There’s more to drill offshore nearby Suriname. Hess also enjoys large positions in the Bakken shale of North Dakota, the deepwater Gulf of Mexico, and offshore Malaysia. The deal (valued at 7x EV/EBITDA) will enable Chevron to grow beyond 4 million barrels per day of oil and equivalent gas production — and into the neighborhood of $30 billion a year in free cash flow. There will naturally be some redundancies within the Hess offshore engineering teams. And redundancies in the C-suite as well. Hess himself will take a board seat at Chevron, and a backseat. It will be an adjustment. Hess, 69, has led the family company since 1995, taking the reins from father Leon, a legendary businessman who built an oil refinery in New Jersey after the Great Depression and rolled up fuel oil distribution networks around the region. For decades Hess came out with a new collectible toy tanker truck in time for the holidays. In 1963 he was part of a group that bought the New York…
The post Chevron Deal Makes Billionaire Hess Family Even Richer appeared on BitcoinEthereumNews.com.
John Hess in 2019. Getty Images Oil scion John Hess will now control nearly $5 billion in Chevron stock — but not a lot of it actually belongs to him. The Hess family is selling out on top. At least that’s how it looks from the oil giant’s surging shareprice, up 100% in two years, to a record high. Now add to that the roughly 20% premium that Chevron is set to pay in its $53 billion deal announced today to acquire Hess. It’s a 100% equity deal; Hess shareholders will get 1.025 shares of Chevron for each of theirs. The big prize in the Hess portfolio is in the waters offshore Guyana, where it has a 30% interest in an array of big deepwater discoveries alongside ExxonMobil XOM . There’s more to drill offshore nearby Suriname. Hess also enjoys large positions in the Bakken shale of North Dakota, the deepwater Gulf of Mexico, and offshore Malaysia. The deal (valued at 7x EV/EBITDA) will enable Chevron to grow beyond 4 million barrels per day of oil and equivalent gas production — and into the neighborhood of $30 billion a year in free cash flow. There will naturally be some redundancies within the Hess offshore engineering teams. And redundancies in the C-suite as well. Hess himself will take a board seat at Chevron, and a backseat. It will be an adjustment. Hess, 69, has led the family company since 1995, taking the reins from father Leon, a legendary businessman who built an oil refinery in New Jersey after the Great Depression and rolled up fuel oil distribution networks around the region. For decades Hess came out with a new collectible toy tanker truck in time for the holidays. In 1963 he was part of a group that bought the New York…
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