Chevron expects up to $400 million quarterly impact from Hess deal

Chevron said on Thursday it was expecting a loss of $200 million to $400 million in the third quarter due to the impact related to the acquisition of Hess.

Chevron closed its $55 billion buyout of Hess in July after winning a landmark legal battle against larger rival Exxon Mobil to gain access to the largest oil discovery in decades.

Excluding severance charges and other costs related to the $55 billion transaction, the U.S. energy major expects an impact of $50 million to $150 million on adjusted earnings in the quarter.

Chevron added that it was expecting net oil-equivalent production to range between 450,000 and 500,000 barrels of oil equivalent per day for the third quarter, including some downtime.

Capital spending for the current quarter is expected to range from $1 billion to $1.25 billion.