Hess Corporation (NYSE: HES) has just announced the completion of the federal trade commission (FTC) antitrust review of the Chevron-Hess merger, marking a significant milestone in the transaction. CEO John Hess expressed his satisfaction with this development, emphasizing that the merger continues to be an outstanding deal for both companies' shareholders and will result in the creation of a premier integrated energy company well-positioned for the energy transition.
As part of the efforts to facilitate the merger's completion, Hess and Chevron have agreed that Mr. Hess will not be appointed to the Chevron board of directors due to concerns raised by the FTC about his communications with a limited number of OPEC officials. However, Mr. Hess will serve as an advisor and representative for Chevron on government relations and social investments in Guyana, as well as on support for the Salk Institute's Harnessing Plants Initiative.
It is noteworthy that over the past five years, Hess Corporation has maintained the highest cash flow reinvestment rate of any oil company, both majors and independents, and has been the sole oil company to reinvest in excess of its cash flow in order to grow oil and gas supply. This demonstrates the company's commitment to long-term investment in meeting the world's energy needs safely and responsibly.
Looking ahead, Mr. Hess expressed his pride in the role that Hess Corporation has played in meeting the world's energy needs and his anticipation of successfully completing the merger with Chevron to deliver value for shareholders.
The completion of the merger remains subject to the satisfactory resolution of ongoing arbitration proceedings regarding preemptive rights in the Stabroek Block Joint Operating Agreement, in addition to other closing conditions outlined in the merger agreement. The market has reacted to these announcements by moving the company's shares 1.6% to a price of $135.81. For more information, read the company's full 8-K submission here.
