What is a "supermajor" in the energy industry?

A supermajor is one of the world's largest publicly owned oil and gas companies. These massive corporations—like ExxonMobil, Chevron, BP, Shell, and TotalEnergies—operate globally across the entire energy value chain, from exploration and production to refining and retail. Supermajors have the financial resources to undertake major projects and acquisitions, as seen with Chevron's $53 billion purchase of Hess.

Why does Chevron's acquisition of Hess matter for other energy stocks?

Chevron's $53 billion acquisition of Hess creates competitive pressure on other large energy companies to make similar strategic moves. This can benefit smaller energy companies that have valuable assets, become acquisition targets, or see increased business activity. When major consolidation happens in an industry, it often triggers a wave of additional mergers and acquisitions, potentially driving up valuations across the sector.

What are "high-quality, long-life reserves" in the energy context?

High-quality, long-life reserves refer to oil and gas deposits that are relatively easy to extract (high-quality) and contain enough resources to support production for many years or decades (long-life). These are highly prized assets because they provide stable production with good profit margins over extended periods. Chevron's interest in Hess was partly driven by gaining access to Guyana's Stabroek Block oilfield, which represents this type of premium asset.

What does "market cap" mean in the stock data?

Market cap (short for market capitalization) represents the total value of a company's outstanding shares. It's calculated by multiplying the current share price by the total number of shares. Market cap helps you understand the company's size—larger market caps generally indicate more established companies, while smaller ones might offer more growth potential but with higher risk. In acquisition scenarios, companies typically pay a premium above the current market cap.

15 handpicked stocks

Energy Consolidation Wave: The Supermajor Acquisition Catalyst

This carefully selected group of stocks represents companies positioned to benefit from the energy sector consolidation triggered by Chevron's $53 billion Hess acquisition. Our expert analysts have identified these opportunities across the energy value chain as potential targets or beneficiaries of this industry-transforming trend.

Han Tan | Market Analyst

Updated 2 days ago | Published at juillet 21