Chevron bought about 4.99 per cent of Hess Corp's common shares this year, reflecting its confidence in completing the planned acquisition of Hess, the oil giant said in a regulatory filing.
The second-largest US oil producer agreed in October 2023 to buy Hess in an all-stock deal valued at $53 billion to gain a crucial stake in Guyana's oil-rich Stabroek block.
US regulators and shareholders have approved the deal, but Exxon Mobil and CNOOC, Hess' partners in Guyana, have challengedit in court. A three-judge arbitration panel is due to consider the case later in May.
Chevron purchased 15,380,000 Hess shares between January and March, worth about $2.3 billion based on Hess' closing share price of $150.45.
Chevron will offer 1.025 of its shares for each Hess share. If the deal closed on Monday, Hess investors would receive $162.69 for each share, based on Chevron's closing price of $158.72.
Chevron is saving money by buying at a discount, said Roy Behren, co-president and co-chief investment officer at Westchester Capital Management, which is an investor in Hess.
"It's a smart and savvy move on their part."
Behren said he believes the acquisition will be completed. Even if it cannot, Chevron has a $2.3 billion indirect interest in the Stabroek field with the 5 per cent Hess stake, he noted. -Reuters