Chevron’s $53B acquisition secures its inventory into the next decade

Amid a cyclical industry of consistently depleting reserves, Chevron Corp.’s (NYSE: CVX) proposed acquisition of New York-based Hess Corp. (NYSE: HES) could secure the company profitable inventory into the next decade. The $53 billion deal, slated as the fourth-largest upstream deal ever by enterprise value, diversifies Chevron’s asset base to include offshore Guyana, which is the largest oil discovery in the last decade. While Chevron has a general five-year guidance, the new assets will increase cash flow far beyond that timeline.