'Exxon Throws A Wrench In Chevron's $53B Deal For Hess' - WSJ
Portfolio Pulse from Benzinga Newsdesk
Chevron's $53B deal to acquire Hess is facing challenges as Exxon Mobil and China's CNOOC claim rights to pre-empt Chevron's bid for a stake in a significant oil project off Guyana. This emerging dispute, highlighted in a Chevron regulatory filing, could potentially derail the acquisition. Exxon operates the Guyana project, one of the largest oil finds in recent years, and along with CNOOC, is challenging Chevron's purchase of Hess.
February 26, 2024 | 9:57 pm
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NEUTRAL IMPACT
Exxon Mobil, operating a major oil project in Guyana, is challenging Chevron's bid for Hess, potentially affecting the dynamics of the acquisition and Exxon's interests in the region.
While Exxon's challenge to Chevron's acquisition of Hess could protect its operational interests in Guyana, the direct impact on Exxon's stock price is less clear, as the outcome and its effects on Exxon's operations and market position are still uncertain.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 70
NEGATIVE IMPACT
Chevron's planned $53B acquisition of Hess is under threat due to claims by Exxon Mobil and CNOOC on a key oil project in Guyana, potentially affecting the deal's completion.
The dispute with Exxon Mobil and CNOOC introduces significant uncertainty around Chevron's ability to complete the acquisition of Hess, which could negatively impact investor sentiment and Chevron's stock price in the short term.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 90
NEGATIVE IMPACT
Hess's involvement in a significant oil project in Guyana is central to Chevron's acquisition bid, now challenged by Exxon and CNOOC, creating uncertainty around the deal's completion.
The challenge by Exxon Mobil and CNOOC to Chevron's acquisition of Hess introduces a level of uncertainty that could potentially derail the deal, negatively affecting Hess's stock price in the short term due to the potential loss of the acquisition premium.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 80