Exxon CEO Denies Interest in Buying Hess, Focuses on Preemption Rights In Dispute with Chevron: Report
Portfolio Pulse from Lekha Gupta
Exxon Mobil Corporation's CEO, Darren Woods, clarified that Exxon is not interested in acquiring Hess Corporation, focusing instead on securing preemption rights over Hess' Guyana assets amid a dispute with Chevron Corporation. This comes as Chevron plans to buy Hess for $53 billion in an all-stock transaction, a deal currently delayed by a second FTC request. Exxon's stance aims to protect its investments and shareholder interests in the Guyana consortium, which also includes CNOOC Ltd.
March 18, 2024 | 5:42 pm
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NEGATIVE IMPACT
Chevron Corporation's planned $53 billion acquisition of Hess is delayed by an FTC request, amid a dispute with Exxon over preemption rights in Guyana.
The FTC's second request delaying Chevron's acquisition of Hess, combined with the dispute with Exxon over preemption rights, could negatively impact Chevron's stock in the short term due to uncertainties and potential delays in the acquisition process.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 85
NEUTRAL IMPACT
Hess Corporation is at the center of a dispute between Exxon and Chevron, with Exxon not interested in buying Hess but focusing on rights over its Guyana assets.
Hess's stock might experience volatility due to the ongoing dispute and the high-profile nature of the negotiations. However, Exxon's lack of interest in acquiring Hess directly might neutralize some potential impacts.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Exxon Mobil Corporation's CEO denies plans to buy Hess, focusing on preemption rights in Guyana. This clarification could reassure investors about Exxon's strategic priorities.
Exxon's clarification of its strategic focus away from acquiring Hess to securing preemption rights in Guyana could positively impact investor sentiment, as it reassures about Exxon's commitment to its current investments and shareholder interests.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90