Chevron announced Monday that it will acquire the independent energy company Hess Corporation for $53 billion.

Hess Corporation has crude oil and natural gas production in offshore Guyana, the Bakken shale play in North Dakota, the deepwater Gulf of Mexico and the Gulf of Thailand, according to a press release from Chevron.

Chevron said in a release the new, combined company "is expected to grow production and free cash flow faster and for longer than Chevron’s current five-year guidance."

John Hess, current CEO of the Hess Corporation, is expected to join Chevron's Board of Directors.

The announcement from one of the giants in the oil and gas industry comes weeks after Exxon Mobil's announcement that it was acquiring Pioneer Natural Resources for $60 billion.

Headquartered in California, Chevron was ranked 10th overall in the Fortune's 2023 list of the top 500 companies by revenue, bringing in a record $36.5 billion in profit last year, as gas and oil prices soared.

According to the release, Chevron expects to increase asset sales and generate $10-15 billion before tax proceeds through 2028 after closing the deal with Hess Corporation.

Gas prices:Why gas prices are down, even in pricey California, as Israel-Hamas war escalates

What is the Hess Corporation?

The Hess Corporation was founded in 1919 as the Amerada Petroleum Corporation, then acquired in 1969 by Leon Hess, who owned the New York Jets.

The company operated gas stations in multiple states before its 2013 announcement that it would withdraw from refining and retail sales of petroleum products. Speedway, a subsidiary of Marathon Petroleum Company, announced it would purchase Hess Corporation's retail business in 2014 for $2.6 billion.

The company is also known for its toy trucks and other vehicles, which it has sold for over 50 years around the Christmas season. Some of the older toys are considered to be collectibles.