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Acquisition of Hess Corporation | 9 Months Ended
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Sep. 30, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract] |
Acquisition of Hess Corporation | Acquisition of Hess Corporation On July 18, 2025, the company acquired Hess Corporation (Hess), an independent oil and gas exploration and production company. Hess’s principal upstream operations are in the United States, Guyana and Malaysia. Hess’s operations also include an approximate 38 percent ownership interest in Hess Midstream LP, with operations primarily in the Bakken shale in the Williston Basin area of North Dakota. The aggregate purchase price of Hess was approximately $48 billion, including 15.38 million shares of Hess common stock purchased in open market transactions in the first quarter of 2025 and 301.25 million shares of Chevron common stock issued as closing consideration in July. As part of the transaction, the company assumed debt with an aggregate outstanding principal value of $8.8 billion. The shares issued represented approximately 15 percent of the shares of Chevron common stock outstanding immediately after the transaction closed on July 18, 2025. The acquisition was accounted for as a business combination under ASC 805, which requires assets acquired and liabilities assumed to be measured at their acquisition date fair value. Provisional fair value measurements were made for acquired assets and liabilities, and adjustments to those measurements may be made in subsequent periods, up to one year from the date of acquisition, as information necessary to complete the analysis is obtained. Oil and gas properties were valued using a discounted cash flow approach that incorporated internally generated price assumptions and production profiles together with appropriate operating cost and development cost assumptions. Debt assumed in the acquisition was valued based on observable market prices for Hess’s debt. As a result of measuring the assets acquired and the liabilities assumed at fair value, there was no goodwill or bargain purchase recognized.
|  |  | At July 18, 2025
|  |  | (Billions of dollars)
Current assets |  |  | $ | 3.3 |
Properties, plant and equipment |  |  | 73.7 |
Other assets |  |  | 2.5 |
Total assets acquired |  |  | 79.5 |
Current liabilities |  |  | 3.1 |
Long-term debt(1) |  |  | 10.0 |
Deferred income taxes |  |  | 11.0 |
Other liabilities |  |  | 2.4 |
Total liabilities assumed |  |  | 26.5 |
Noncontrolling interest(2) |  |  | 5.0 |
Net assets acquired / purchase price |  |  | $ | 48.0 |
(1) Includes finance leases (2) Related to Hess Midstream LP The long-term debt assumed in the transaction is detailed in the table below:
| Principal
Hess Corporation | (Millions of dollars)
4.300% due 2027 | $ | 1,000 |
7.875% due 2029 | 467 |
7.300% due 2031 | 631 |
7.125% due 2033 | 540 |
6.000% due 2040 | 750 |
5.600% due 2041 | 1,250 |
5.800% due 2047 | 500 |
Total Hess Corporation Debt | $ | 5,138 |
Hess Midstream Operations LP |
5.125% due 2028 | $ | 550 |
5.875% due 2028 | 800 |
6.500% due 2029 | 600 |
4.250% due 2030 | 750 |
5.500% due 2030 | 400 |
Term loan and credit facility borrowings | 646 |
Total Hess Midstream Operations LP Debt | $ | 3,746 |
Unamortized discounts and debt issuance costs | (61) |
Total Long-Term Debt Assumed | $ | 8,823 |
Fair market value adjustment for debt acquired in the acquisition | 247 |
Fair Market Value of Long-Term Debt Assumed | $ | 9,070 |
The following table presents revenue and earnings for Hess since the acquisition date (July 18, 2025), for the periods presented. In addition to the loss quantified in the table, Chevron incurred incremental costs associated with the transaction, resulting in a total Hess-related impact of a loss of approximately $250 million in third quarter 2025. Excluding severance and other transaction related costs, Hess-related earnings were approximately $150 million in the quarter.
| Three Months Ended September 30 |  | Nine Months Ended September 30
| 2025 |  | 2025
| (Millions of dollars)
Sales and other operating revenue | $ | 2,906 |  |  | $ | 2,906 |
Net Income (Loss) Attributable to Chevron Corporation | $ | (129) |  |  | $ | (129) |
The following unaudited pro forma information presents the results of operations as if the acquisition of Hess had occurred January 1, 2024:
| Three Months Ended September 30 |  | Nine Months Ended September 30
| 2025 | 2024 |  | 2025 | 2024
| (Millions of dollars)
Sales and other operating revenue | $ | 48,169 |  | $ | 51,668 |  |  | $ | 146,536 |  | $ | 153,234 |
Net Income (Loss) Attributable to Chevron Corporation | $ | 3,539 |  | $ | 4,749 |  |  | $ | 9,617 |  | $ | 15,597 |
The unaudited pro forma information uses estimates and assumptions based on information available at the time. Management believes the estimates and assumptions to be reasonable; however, actual results may differ significantly from this pro forma financial information. The pro forma information does not reflect any synergistic savings that might be achieved from combining the operations and is not intended to reflect the actual results that would have occurred had the companies actually been combined during the periods presented. The pro forma results reflect pro forma adjustments primarily related to conforming Hess accounting policies to Chevron’s, additional depreciation expense related to the fair value adjustment of the acquired property, plant and equipment, elimination of intercompany transactions and applicable income tax impacts. See Item 1A. Risk Factors for a discussion of risks related to the Hess acquisition.

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