Investment Manager Reveals: Hess Stocks Plummet Due to Chevron Deal Delay
In a shocking turn of events, U.S. oil producer Hess (NYSE: HES) experienced its biggest drop in stock value in 20 months as a result of a significant delay in its proposed sale to Chevron (NYSE: CVX). An arbitration panel convened to address an Exxon Mobil (NYSE: XOM) challenge to the $53 billion sale has postponed the meeting until May, pushing the closing date to the second half of 2025.
Hess' shares plummeted by $11.25, a staggering 7.35% drop, marking the largest decline since November 2022. Meanwhile, Chevron also saw a decrease of 4%, with shares down $6.57 at $153.93 during midday trading in New York on Thursday.
The dispute arose when Exxon and CNOOC Ltd (NYSE: CEO) filed arbitration claims asserting their right to preempt any sale of Hess' stake in a profitable Guyana oil joint venture. This challenge poses a significant threat to Chevron's largest deal in over two decades.
In conclusion, this unexpected setback has rattled the energy market and impacted the financial standing of both Hess and Chevron. Investors must monitor the situation closely as it unfolds to make informed decisions about their portfolios.