Chevron Exxon Tug of War over Hess Guyana Interests
Chevron Exxon Tug of War over Hess Guyana Interests
https://www.oilandgas360.com/hedge-funds-bet-on-chevron-amidst-exxonmobils-claim-to-hess-stake-in-prolific-oil-field-offshore-guyana/#utm_source=rss&utm_medium=rss&utm_campaign=hedge-funds-bet-on-chevron-amidst-exxonmobils-claim-to-hess-stake-in-prolific-oil-field-offshore-guyana
Re: Chevron Exxon Tug of War over Hess Guyana Interests
At CERA yesterday.
In his first public remarks on Exxon Mobil's (NYSE:XOM) pursuit of an arbitration case that could block Chevron's (CVX) purchase of Hess (HES), CEO Darren Woods said on Monday that the company is trying to secure preemption rights related to its Guyana assets and is not seeking to buy the company.
"We're basically standing up for what we believe is a fundamental right," Woods told Reuters, adding that Exxon (XOM) would not have waited for Chevron (CVX) to announce the deal if it had wanted to buy Hess (HES).
The arbitration case seeks to preserve Exxon's (XOM) right to determine the value of Hess' (HES) 30% stake in the giant Stabroek offshore oil block, and Exxon wants to "evaluate that value and do what is in the best interest of Exxon Mobil shareholders, given the investments that we've made and all the work we've done to make that successful," Woods said.
Separately on Friday Exxon announced another discovery in the Guyana project further enhancing the value of the Hess stake. Seems like Hess will be a winner no matter how this plays out.
In his first public remarks on Exxon Mobil's (NYSE:XOM) pursuit of an arbitration case that could block Chevron's (CVX) purchase of Hess (HES), CEO Darren Woods said on Monday that the company is trying to secure preemption rights related to its Guyana assets and is not seeking to buy the company.
"We're basically standing up for what we believe is a fundamental right," Woods told Reuters, adding that Exxon (XOM) would not have waited for Chevron (CVX) to announce the deal if it had wanted to buy Hess (HES).
The arbitration case seeks to preserve Exxon's (XOM) right to determine the value of Hess' (HES) 30% stake in the giant Stabroek offshore oil block, and Exxon wants to "evaluate that value and do what is in the best interest of Exxon Mobil shareholders, given the investments that we've made and all the work we've done to make that successful," Woods said.
Separately on Friday Exxon announced another discovery in the Guyana project further enhancing the value of the Hess stake. Seems like Hess will be a winner no matter how this plays out.
Re: Chevron Exxon Tug of War over Hess Guyana Interests
I bought Dan's former company HES, yesterday.
Guyana's is huuuuge and Hess is a winner no matter what happens. If CVX walks, they have to pay a break up fee. If crude keeps moving up, someone else could make a competing bid. And if CVX wins the arbritation, the merger discount closes. Crude is moving up and I'm bullish with oil over 80 on the oily names
Guyana's is huuuuge and Hess is a winner no matter what happens. If CVX walks, they have to pay a break up fee. If crude keeps moving up, someone else could make a competing bid. And if CVX wins the arbritation, the merger discount closes. Crude is moving up and I'm bullish with oil over 80 on the oily names
Re: Chevron Exxon Tug of War over Hess Guyana Interests
Interesting thoughts, Fraser. WSJ had an article on the HES-CVX merger two weeks ago. Seems as if the traders weren't buying it would happen as HES is trading 20 points lower than the take out price. Wonder whether XOM would bust up it's deal for PXD to bid for HES. Sounds like Guyana is more promising than Permian. Any thought's?
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marc.wolin@yahoo.com
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Re: Chevron Exxon Tug of War over Hess Guyana Interests
CVX vs XOM
Even the big boys have trouble with these acquisitions. You would think that CVX would have analyzed the hell out of the transaction before they made their move? XOM may regret going for the Permian rather than more of Gyuana. If CVX loses this they deserve to have their butt kicked! I own a lot of CVX.
Marc Wolin
Even the big boys have trouble with these acquisitions. You would think that CVX would have analyzed the hell out of the transaction before they made their move? XOM may regret going for the Permian rather than more of Gyuana. If CVX loses this they deserve to have their butt kicked! I own a lot of CVX.
Marc Wolin
Re: Chevron Exxon Tug of War over Hess Guyana Interests
I’m not an expert, but the merger discount will widen if time expands.
And an arbitration hearing and decision could take up to 2 years, so a healthy discount now is warranted.
I heard XOM can’t bid with the PXD deal but they can make the other side delay, they then close the PXD deal, then they could make a bid with a regime change after they snare PXD.
Xom today said they don’t want to buy HES they just want money
for looking the other way.
Hes move up with CVX stock price and one big supporter of CVX is Warren Buffett and he seems to know what he is doing.
So there’s many angles for HES to move up.
Continued success in Guyana, I heard they discovered oil in all 30 wells and it will start flowing soon. ZOM certainly thinks it’s worth bucks.
Getting the deal closed sooner
Strength in energy names helps CVX and by default HES
Settlement with XOM
Headwinds are politics with Maduro and Biden
Oil prices outlook
Length of time to get this done
And an arbitration hearing and decision could take up to 2 years, so a healthy discount now is warranted.
I heard XOM can’t bid with the PXD deal but they can make the other side delay, they then close the PXD deal, then they could make a bid with a regime change after they snare PXD.
Xom today said they don’t want to buy HES they just want money
for looking the other way. Hes move up with CVX stock price and one big supporter of CVX is Warren Buffett and he seems to know what he is doing.
So there’s many angles for HES to move up.
Continued success in Guyana, I heard they discovered oil in all 30 wells and it will start flowing soon. ZOM certainly thinks it’s worth bucks.
Getting the deal closed sooner
Strength in energy names helps CVX and by default HES
Settlement with XOM
Headwinds are politics with Maduro and Biden
Oil prices outlook
Length of time to get this done