Arbitration To Uncover Hidden Value Of Hess' Guyana Oil Assets In Exxon Mobil vs. Chevron Dispute: Report
Portfolio Pulse from Lekha Gupta
An arbitration panel is set to examine the hidden value of Hess Corporation's oil assets in Guyana amidst a dispute between Exxon Mobil and Chevron. The conflict revolves around whether the deal triggers Exxon's right of first refusal, potentially affecting Chevron's $53 billion acquisition of Hess. Exxon is considering a counterbid if the arbitration supports their claim. The decision is expected in the second half of 2025.
August 20, 2024 | 4:16 pm
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NEGATIVE IMPACT
Chevron is in a dispute with Exxon over Hess' Guyana oil assets, which could impact its $53 billion acquisition of Hess. The arbitration outcome may require Chevron to adjust its offer.
Chevron's acquisition of Hess is at risk due to the arbitration. A decision against Chevron could force it to adjust its offer, affecting its financial strategy and stock price.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 90
NEGATIVE IMPACT
The iShares U.S. Energy ETF, which includes Exxon Mobil, could be impacted by the arbitration between Exxon and Chevron.
IYE holds Exxon Mobil, and the arbitration's impact on Exxon's stock could affect the ETF's value.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 60
NEGATIVE IMPACT
The Energy Select Sector SPDR Fund, which includes Exxon Mobil, may see volatility due to the ongoing arbitration between Exxon and Chevron.
XLE includes Exxon Mobil, whose stock is affected by the arbitration, potentially impacting the ETF's performance.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 60
NEGATIVE IMPACT
Exxon Mobil is involved in a legal dispute with Chevron over Hess' Guyana oil assets, which may affect its stock price. The arbitration decision could support Exxon's claim, leading to a potential counterbid.
Exxon's stock is trading lower due to the uncertainty surrounding the arbitration outcome. A decision supporting Exxon's claim could lead to a counterbid, impacting its financials and stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
Hess' oil assets in Guyana are central to the arbitration between Exxon and Chevron. The outcome could affect the valuation and terms of Chevron's acquisition of Hess.
Hess' assets are pivotal in the dispute, but the direct impact on Hess' stock is neutral as the focus is on Exxon and Chevron's actions.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80