1. Chevron Corp, a US-based petroleum refineries company, announced an agreement to acquire Hess Corp, a smaller rival oil firm, for $53 billion in an all-stock deal on October 23.
2. The acquisition will expand Chevron's operations in South America's emerging oil basin in Guyana.
3. Hess, Exxon Mobil, and China's CNOCC produced 400,000 barrels per day from Guyana's offshore projects and plan to develop up to 10 more in the region.
4. Chevron plans to return more cash to shareholders with higher dividend growth and share repurchases, given their confidence in long-term cash generation.
5. Chevron's chief financial officer, Pierre Breber, expressed this intention.
6. The proposed terms of the deal offer $171 per share of Hess, representing a 4.9% premium over the previous close.
7. This acquisition places Chevron in direct competition with Exxon Mobil in the vital Guyana oil basin.
8. Exxon Mobil recently announced its intention to acquire Pioneer Natural Resources for $60 billion.
9. This acquisition would make Exxon the largest oil field producer, with an output exceeding that of many OPEC nations.
10. The deal positions it as Exxon's most significant acquisition since its merger with Mobil Corp. in 1999.
11. Guyana's oil basin is one of the world's fastest-growing, making it a valuable asset for both Chevron and Exxon Mobil.
12. The agreement reflects the competitive nature of the global oil industry and the pursuit of expanding reserves.
13. Chevron's all-stock deal provides an alternative to traditional cash transactions in the acquisition.
14. The increased dividend and share repurchases indicate Chevron's confidence in the long-term profitability of this venture.
15. The acquisition is set to have a significant impact on the global energy landscape and the competitive dynamics within the oil sector.
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