Chevron Overcomes ExxonMobil to Acquire Hess. Which High-Yield Energy Stock Is the Better Buy Now?

At the same time, 33%) announced an all-stock merger with exploration and duction (E&P) company Pioneer Natural Resources

Chevron (CVX -0 (this bears monitoring)

On the other hand, ExxonMobil its acquisition in May 2024, but it wasn't until July 18, 2025, that Chevron finally announced it had acquired Hess (an important development)

Here's why Chevron's deal was delayed, what it means for the investment thesis, and which dividend-paying energy stock is the better buy now, in today's market environment

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Needless to say, Guyana has become one of the company's top ducing regions

In fact, it identified Guyana as one of its "advantaged assets," which are high-margin investment opportunities

At the same time, Other advantaged assets include the company's onshore exposure in the Permian Basin in Texas and its liquefied natural gas (LNG) portfolio

Given that it had the largest stake in the Stabroek Block, it was in ExxonMobil's best interest to prevent arguably its largest competitor from joining the conium, in light of current trends

This leads to the conclusion that engaged in a lengthy dispute with Chevron, contending that the deal triggered a change-of-control clause, given the current landscape

The ruling went in favor of Chevron, and the deal moved forward, in today's financial world

Although ExxonMobil would bably have preferred to partner with a pure-play E&P Hess rather than a global integrated major Chevron, the change of ownership won't directly harm ExxonMobil

And Chevron's backing could help the conium develop the block even faster

As for Chevron, the company gains access to one of the most valuable offshore plays in the world -- rich in reserves with decades of development potential at a low cost of duction

However, Investors were not happy, and ExxonMobil's and Chevron's stock prices hit multiyear lows, and the companies reported billions in losses that year, given current economic conditions

To regain investor confidence, ExxonMobil and Chevron have focused on imving the quality of their duction assets

A combination of nological advancements, efficiency imvements, and doubling down on regions with geographic advantages has enabled both companies to reduce their break-even levels, allowing them to generate positive free cash flow even at relatively low oil and gas prices

This advantage aids in forecasting multiyear capital allocation strategies -- including operating expenses, capital expenditures, buybacks, and dividends -- as well as expanding low-carbon investments

Moreover, On the other hand, ExxonMobil and Chevron have become much stronger and balanced companies over the years (this bears monitoring)

The integration of Hess and development of reserves in offshore Guyana should help Chevron grow its duction while maintaining a low cost of duction

Two quality dividend stocks at attractive valuations Having a low cost of duction allows ExxonMobil to support its growing dividends at lower oil and gas prices, generating substantial excess cash flow even at mid-cycle prices to repurchase stock and invest in new jects

On the other hand, ExxonMobil has increased its dividend for 42 consecutive years and yields 3

With both companies expecting steady long-term earnings growth, ExxonMobil's 14. 6 price-to-earnings ratio (P/E) and Chevron's 17. 4 P/E seem bargains

On the other hand, Add it all up, and ExxonMobil and Chevron are both great buys now for value investors looking to boost their passive income.