Chevron’s Mega Oil Deal is More Expensive Than Exxon’s Deal to Acquire Pioneer

Exxon Mobil’s $59.5 billion deal to acquire oil and gas producer Pioneer Natural Resources may have been larger than Chevron’s $53 billion agreement to buy Hess, but it is Chevron that is paying a loftier price tag.

Pioneer generates twice as much annual cash as Hess, but the all-stock transactions value Pioneer at just 6.35 times its 12-month cash flow compared with 11.65 times for Hess.

This means Chevron is paying close to double the price for every dollar of acquired cash flow compared with Exxon.

Read the source article at U.S. News