Exxon Mobil Corporation XOM CEO Darren Woods has emphatically quashed any rumors of pursuing an acquisition of Hess Corporation HES.
Rather than delving into acquisition talks, Exxon is strategically focusing on securing preemption rights over Hess’ Guyana assets in light of the ongoing disagreement with Chevron Corporation CVX, as per a recent report from Reuters.
In his first public address regarding the arbitration case that could potentially derail Chevron’s $53 billion deal for Hess, Woods unequivocally stated that had Exxon harbored any intentions to acquire Hess, they would have promptly acted without waiting for Chevron’s bid announcement.
Exxon’s primary objective remains to thoroughly assess the value proposition and act in the best interest of Exxon Mobil shareholders, considering the extensive investments and efforts dedicated to ensuring successful outcomes.
According to the report, both Hess and Chevron have expressed disagreement with Exxon’s interpretation of the joint operating agreement governing the Exxon, Hess, and CNOOC Ltd consortium responsible for overseeing all oil production activities in Guyana.
Back in October 2023, Chevron entered into an agreement to acquire Hess for a mammoth $53 billion, valuing each share at $171 in an all-stock transaction.
Subsequently, in December, the Federal Trade Commission (FTC) issued a second request to Chevron and Hess, prolonging the waiting period for their proposed deal.
This regulatory request has effectively pushed back the anticipated closing date to at least the midway point of this calendar year.
Additional Reading: Exxon’s Refinery Overhaul Progresses, Approaches Sale of Key LNG Terminal: Report
Stock Movement: XOM shares witnessed a 1.09% surge, trading at $112.48 during the latest market check on Monday.
Image Source: Shutterstock
