Business Maverick
Hess Family Scores $5 Billion Payout, and a Big Stake in Chevron
Leon Hess founded Hess Corp. with a secondhand truck delivering fuel oil during the depression. Ninety years later, his son, John Hess, has agreed to sell the US oil producer to Chevron Corp. in a deal that crystallizes the value of the stake controlled by the family at about $5 billion.
Read More: Chevron to Buy Hess for $53 Billion in Latest Oil Megadeal
John Hess, 69, who has been chief executive officer of Hess since 1995, is expected to take a seat on the Chevron board following the completion of the deal. He said on a conference call following the announcement of the takeover that he has no plans to sell down his family’s stake, which will rank among the very largest holders of Chevron.
“We still get to participate in the upside,” Hess said on a call with analysts Monday. “This value accretion will go to Chevron shareholders of which I and my family are going to be one, and intend on holding the stock for a long time.”
Hess shareholders will receive $6.50 a share in dividends next year after the deal closes, up from $1.75 currently.
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