Chevron Shares Surge After Arbitration Victory Clearing Path for Hess Acquisition

Houston, August 29, 2025 - Chevron Corporation (NYSE: CVX) shares jumped more than 3 percent in pre-market trading on Friday following an arbitration panel’s rejection of ExxonMobil’s claim to Hess Corporation assets, clearing the way for Chevron to proceed with its $53 billion acquisition of Hess.

The arbitration dispute centered on a contractual right of first refusal ExxonMobil and China’s CNOOC asserted over Hess’s offshore Guyana interests. The panel’s decision removes the last legal hurdle to closing the merger, which was first announced in April and unanimously approved by Hess shareholders in July.

“The panel’s ruling aligns with the clear language of the joint operating agreement and affirms our right to complete the transaction,” Chevron Chairman and CEO Mike Wirth said in a statement. “We look forward to integrating Hess’s world-class assets, including Guyana and the U.S. Bakken, and delivering enhanced free cash flow growth and shareholder returns well into the next decade.”

Analysts expect the acquisition to add more than 11 billion barrels of oil equivalent in Guyana recoverable resources and approximately 463 thousand net acres in the Bakken shale, boosting Chevron’s global production profile. The deal is also projected to yield $1 billion in annual run-rate cost synergies by the end of 2025.

Friday’s pre-market rally reflects investor confidence that Chevron can swiftly integrate Hess’s portfolio, which complements its leading positions in the Permian Basin, Gulf of Mexico, DJ Basin, Kazakhstan, and Australia. CME Group futures contracts showed Chevron trading at $162.40, up $4.85 from Thursday’s close of $157.55.