Chevron

Let's get to the big deal news of the day. Chevron completing its acquisition of Hess after an arbitration panel cleared the way for their merger. $55 billion total enterprise value for the deal, including debt. Chevron CEO Mike Worth joins us here at Post 9. First on CNBC to discuss the deal, welcome. Good to see you. It's a big day for you. You have been confident all along that you would prevail. And now you got the word, how's it feel? It feels good. We have maintained from the beginning that t And we're very pleased that the transaction has now closed. Creates a premier international oil and gas company with strongest upstream portfolio in the industry, Largest, one of the largest producers, both oil and gas in the United States, largest leaseholder in the Gulf of America. An industry leading free cash flow for share growth, not just for the next couple of years, but into the next decade. So good for Chevron and also good for the industry. Because it affirms a long standing practice that asset level, rights of refusal, don't apply in corporate level, M&A Transaction. I'm not sure that Exxon would agree with that. I mean, it's been a dramatic 20 or so months since you first announced t It was unusual for Exxon to come at you like this with a fight and that, What do you t Why do you t I can just tell you, it didn't have to be t It's unfortunate that Hesse'shareholders and employees have been put through t And the arbitration panel saw it that way, t Why did it, you could have resolved it sooner if maybe you settled. Why didn't, did you ever look at doing that? Well, the facts were on Hesse'side in t And I t So does t No, it doesn't. It strengthens long-term cash flows for our company. It deepens our already deep resource position. We've had a very consistent track record of dividend increases 38 consecutive years where we've increased our dividend payout, share repurchases 18 of the last 22 years, record share repurchases the last two years. T We've got double A credit rating, low net debt. And the times today characterized as the production backdrop as tricky for producers because on the one hand, you do have a lot of deregulation and easing and permitting and the administration clearly wants that, but they also want a low raw material cost. And how does that affect producer psychology at the moment? Well, it's a long-term business and we lay out our plans and look to develop in a capital efficient manner. We've been growing our production with record production in the US. Last year I expect to have record production in the US again t For yourselves and the industry? For ourselves and the industry, yes. And we're closing in on a million barrels a day in the Permian Basin. And so we've been steadily growing our business here in the US and investing in it, but doing it in a capital efficient way that can generate the strong returns on investment so we can return cash to shareholders. You have said that t So now that you're past it, first of all, I'm curious how you look at HES differently if at all because it's been almost two years from when you originally said you wanted to do the deal looks better today at any price ass HES's business has performed better than we ass We've got a very strong view now on synergies. We've been prepared to integrate t We'll be cash flow per share accretive by the end of t We'll deliver a billion dollars in run rate synergies by the end of t And so the deal looks better to us today than it did at the time went in. What about the relations Where do you go from here? Because you partner on t We partner with companies across the industry around the world. It's the nature of our industry. We share risk. We pool talent to develop resources. And so we'll continue to do that. We have a partners We pride ourselves on working hard to be a good partner with all the people that we partner with around the world. And we're partners with Exxon in a n And I expect that our people work well with them. In Guyana, many of those people will be former HES employees who have been working on t