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Chevron Celebrates Big Victory in Fight With Exxon

Chevron Celebrates Big Victory in Fight With Exxon

Bloomberg7 days ago
Amid the political inertia (or wholesale retreat) miring efforts to forestall the most catastrophic consequences of global warming, the industry primarily responsible for it saw a historic victory Friday. Following an unprecedented, 20-month fight between Chevron and Exxon-Mobil, Chevron emerged the winner. The prize? Chevron can now buy another fossil fuel company, Hess, for $53 billion. The ruling by an arbitration court ended a period of strategic limbo that hurt Chevron's stock and prompted questions over the quality of the company's due diligence when it agreed to snap up Hess in 2023.
Exxon, which operates and owns 45% of Guyana's offshore Stabroek Block, claimed it had a right of first refusal over the disposition of Hess's 30% stake. Acquiring Hess and its interest in Guyana significantly increases the quality of Chevron's oil assets beyond the Permian Basin of Texas and New Mexico, narrowing the gap with Exxon. 'This creates a premier international and oil and gas company,' declared Chevron Chief Executive Officer Mike Wirth. Meanwhile, some hedge funds are really cashing in on the deal.
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