https://www.reuters.com/markets/deals/chevron-buy-hess-corp-53-bln-stock-2023-10-23/
Should we have made this play instead?
15 replies (most recent on top)
EM should buy CVX
Really good deal, cheaper than Anadarko, with conventionals that have lower cost per barrel.
And we all know the Layoff board is where the most knowledgeable financial and strategic analysis can always be found.
Just go look at the CVX layoff board. They are beyond mad for how much they paid
Hess has 30% of Guyana. Typically, the Venture parties have been bidding together on future acreage. The Stabroek partners do not have the data on Canje and Kaiteur blocks than the interpretation is proprietary to the companies in those blocks so Hess and CNOOC do not have that data. The deepwater plays outboard of Stabroek gets into very deep water (approaching 3000 m and TVD of over 25000 ft+ and the ACT reservoirs get really deep (high pressure). Some of these deepwater plays can be developed but it will take Gen 8 rigs (only 2 exist in the world) and 20 ksi BOP and Wellheads.
CVX wants to know what EM knows as they make their own bids on Guyana deepwater.
@piz Hess dumped all of its downstream stuff some time ago.
If XOM was going to buy Hess, it would have happened a while back where the stock value was less than the value of the Guyana barrels in the ground.
Em should never have sold 45% of Guyana to Hess.
Whose idea was it to divest of Guyana?
CVX totally overpaid. Hess was trading at multiples in the stratosphere. CVX essentially bought interest in Guyana because other Hess assets are short on remaining inventory
Hess is worthless without Guyana. CVX paid to be part of the party
They’re paying for Guyana. That will give them further insights into the formations there along with ~300kbd oil at very low cost added to their bottom line.
Hess had refining, which EM does not want to add.
Now for the actual deal - Exxon chevron merger when MW retires
Hess hasn't ever really broke 50 billion in market cap and is at their peak. Chevron is paying a premium for a company at its peak. Pioneer peaked recently at 64 billion, we're paying slightly below the peak.
Both are overpays frankly but Pioneer is the lessor of the overpay
This is definitely more of an overpay situation