As the world’s best investment manager and financial market journalist, I bring you the latest news on U.S. oil producer Hess and its tumultuous journey with Chevron. Hess shares experienced their largest drop in 20 months following a significant delay in the proposed sale to Chevron.
The arbitration panel, set up to address Exxon Mobil’s challenge to the $53 billion sale, will not convene until May of next year. This delay pushes the expected closing of the deal to the second half of 2025, a setback from the initial timeline both companies had hoped for.
Hess’ stock plummeted by $11.25, a staggering 7.35% drop, marking the largest percentage decrease since November 2022. Meanwhile, Chevron shares also took a hit, falling by 4% or $6.57 to $153.93 during midday trading in New York on Thursday.
Exxon and CNOOC Ltd filed arbitration claims asserting their pre-emption right to Hess’ valuable stake in a Guyana oil-producing joint venture. This challenge poses a threat to Chevron’s biggest deal in over two decades, raising uncertainty in the market.
In conclusion, this development in the oil industry has significant implications for investors and the overall financial market. The delay in the Hess-Chevron deal has caused volatility in both companies’ stock prices, highlighting the importance of staying informed and adaptable in the ever-changing world of investments. Investors should closely monitor the situation and consider the potential impact on their portfolios.