Exxon Mobil’s Stance on Hess Acquisition
Exxon Mobil Corporation’s CEO, Darren Woods, has explicitly denied any intentions of acquiring Hess Corporation, opting instead to focus on securing preemption rights over Hess’s Guyana assets in the ongoing feud with Chevron Corporation, as per a recent report by Reuters.
CEO’s Public Address on Arbitration Case
In his first public commentary regarding the arbitration case that could potentially impede Chevron’s $53 billion agreement with Hess, Woods emphasized that Exxon Mobil had no desire to purchase Hess, indicating they would have acted before Chevron’s declaration if such an interest existed.
Expressing the company’s intention to safeguard the interests of Exxon Mobil shareholders, Woods iterated the importance of assessing value meticulously to determine the best course of action based on the substantial investments and efforts made to enhance the Guyana assets.
Discrepancies in Interpretation
According to the report, both Hess and Chevron have refuted Exxon’s interpretation of the joint operating agreement overseeing the collaboration between Exxon, Hess, and CNOOC Ltd for Guyana’s oil extraction operations.
Historical Context of Chevron-Hess Deal
In a historic move, Chevron agreed in October 2023 to acquire Hess for $53 billion, amounting to $171 per share in an all-stock transaction.
Regulatory Hurdles Delaying Closure
The waiting period for the proposed deal between Chevron and Hess extended when they received a second request from the FTC in December, pushing the anticipated closing date to at least the middle of the current year.
Market Response to Exxon Mobil’s Strategy
Despite the ongoing dispute and strategic maneuvers by Exxon Mobil, XOM shares saw a 1.09% rise, reaching $112.48 in the latest check on Monday, reflecting the market’s confidence amid the turbulence.
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