Hearing it’s gonna happen.. but the new haircut/arrangement in Guyana is the question. How are folks feeling about it? T-minus 7 months…
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CVX didn’t “lose” the reserves, they are being captured by Hess. Also, as Guyana FPSO’s are brought online, it will only increase the value of Hess and it will not be good for CVX as the price to acquire would go up should the sale not happen.
Given that CVX has now lost those reserves that Hess continued to extract, shouldn't there be a re-evaluation of the price?
Arbitrators will side with CVX.
@zrd+1uN6tQqY
Big flaw in your argument. Production doesn’t matter. Of the “valuation” -, which is usually about future than current - how much is Guyana. It is greater than 80%, which plays to Exxon arbitration
The FTC approval already did happen a few days ago. That hasn’t been the blocker. The Exxon challenge over Guyana is what is holding it up.
FTC approval means nothing if the arbitrators side with Exxon.
interesting assumption that it will "most likely" happen when you probably dont know and have no CLUE how 3 arbitrators will decide......
Exxon is arguing CVX are buying ONE asset rather than a merger. The problem is, Guyana is only half the HESS production. So they will lose their case, which they always knew, but succeed in their primary goal of delaying the merger a couple years and severely sticking it to CVX to the tune of billions of cost and lost opportunity. A classic, old-style Exxon play that we, of course, never saw coming. MW is beyond furious.
It just means that Chevron padded the wallets of people at FTC and within the government as usual. We still have a lot of time before May comes around, which ultimately is the final decision. Will it happen, most likely, but I am enjoying the butt puckering by our leaders.