Chevron Corporation (CVX:US) said today it agreed to acquire Hess Corporation (HES:US) in a deal valued at $53 billion.

The price of $171 per share is based on Chevron's closing price on Friday, October 20. Based on a 20-day average, the agreed price represents a premium of just over 10%.

The agreement sees Hess shareholders receive 1.0250 shares of Chevron for each Hess share. Including debt, the total enterprise value is $60 billion, two companies said.

“This combination positions Chevron to strengthen our long-term performance and further enhance our advantaged portfolio by adding world-class assets,” Chevron Chairman and CEO Mike Wirth said in the press release.

Chevron said that the acquisition of Hess is expected to enhance and diversify its already strong portfolio. One notable asset included in this acquisition is the Stabroek block in Guyana, which is characterized by industry-leading cash margins and a low carbon footprint.

CEO John Hess will join Chevron's Board of Directors as part of this transaction.

“This strategic combination brings together two strong companies to create a premier integrated energy company,” Hess said.

The acquisition of Hess Corporation by Chevron Corporation has received unanimous approval from both companies' Boards of Directors. The transaction is anticipated to be completed in the first half of 2024.

Chevron shares fell in early Monday trade while Hess stock gained about 3%.

Earlier this month, Senator Markwayne Mullin disclosed the $15,000 - $50,000 purchase of Chevron shares. On the other hand, Congresswoman Lois Frankel was seen selling some HES shares in early September.