FTC Seeks More Information On Chevron & Hess Deal; Chevron Chalks Out 2024 Capex Budget
Portfolio Pulse from Lekha Gupta
The FTC has requested additional information from Chevron Corp (CVX) and Hess Corp (HES) regarding their merger, extending the HSR waiting period. Chevron also announced a 2024 capex budget of $15.5 to $16.5 billion, with significant investments in U.S. shale, the Permian Basin, and Gulf of Mexico projects. The company aims to maintain capital discipline and grow free cash flow to increase shareholder returns. CVX shares rose by 1.07% to $143.94.
December 08, 2023 | 5:39 pm
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NEUTRAL IMPACT
Hess Corp is under FTC review for additional information regarding its merger with Chevron, which may extend the waiting period for the merger completion.
The request for additional information from the FTC could delay the merger process, creating uncertainty for Hess Corp. However, the impact on the stock price is neutral in the short term as the market processes this information.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Chevron Corp announced a 2024 capex budget of $15.5 to $16.5 billion, focusing on U.S. shale and Gulf of Mexico projects, and is experiencing an FTC review on its merger with Hess. Shares rose by 1.07%.
The capex announcement reflects Chevron's commitment to growth and capital discipline, which is likely to be viewed positively by investors. The FTC's request for more information on the merger with Hess may introduce some uncertainty, but the positive price action suggests a short-term bullish outlook.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90