We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Exxon Mobil Corporation (XOM - Free Report) and China National Offshore Oil Corporation (“CNOOC”) have merged their arbitration claims against Chevron Corporation’s (CVX - Free Report) proposed takeover of Hess Corporation’s (HES - Free Report) stake in the most prolific oil block offshore Guyana. The consolidation of their arbitration claims, approved after a recent application, signals a significant escalation in the battle for control over the lucrative oil reserves in the region.
According to a letter from Hess to its shareholders, included in a regulatory filing by Chevron on Thursday, the unified arbitration was greenlit following a Mar 26 application. Both ExxonMobil and CNOOC, who collectively hold a substantial 70% stake in the Stabroek Block, argue that they possess a preemptive right over Hess’ interest in the area.
However, Chevron and Hess remain steadfast in their dismissal of these claims, stating in the filing that they believe ExxonMobil and CNOOC’s assertions lack merit. Hess has asserted its intention to vigorously defend its position in the arbitration proceedings, expressing confidence that the arbitration tribunal will rule in its favor. The company affirmed that the Stabroek right of first refusal clause does not extend to the proposed merger.
The roots of this dispute trace back to a contract drafted more than a decade ago, representing an unprecedented challenge in the contemporary history of major oil corporations. The $53 billion deal between Chevron and Hess hangs in the balance as the parties involved navigate the complexities of contractual interpretation and legal maneuvering.
Highlighting the intrigue surrounding the situation, Hess pointed out in the filing that ExxonMobil had initially expressed support for the deal in October, only to reverse its course six months later. This sudden reversal adds layers of complexity to an already contentious dispute.
Hess emphasized that its position is firmly grounded in the explicit terms of the Stabroek contract. Meanwhile, ExxonMobil has accused Chevron and Hess of trying to bypass the private contract.
Sunoco is among the biggest motor fuel distributors in the U.S. wholesale market in terms of volumes. By distributing more than 10 fuel brands via 10,000 convenience stores under long-term distribution contracts, the partnership will continue to generate stable cash flow.
The Zacks Consensus Estimate for SUN’s 2024 earnings per share is pegged at $4.96. The stock has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
ExxonMobil (XOM) & CNOOC Challenge Chevron's Guyana Acquisition
Exxon Mobil Corporation (XOM - Free Report) and China National Offshore Oil Corporation (“CNOOC”) have merged their arbitration claims against Chevron Corporation’s (CVX - Free Report) proposed takeover of Hess Corporation’s (HES - Free Report) stake in the most prolific oil block offshore Guyana. The consolidation of their arbitration claims, approved after a recent application, signals a significant escalation in the battle for control over the lucrative oil reserves in the region.
According to a letter from Hess to its shareholders, included in a regulatory filing by Chevron on Thursday, the unified arbitration was greenlit following a Mar 26 application. Both ExxonMobil and CNOOC, who collectively hold a substantial 70% stake in the Stabroek Block, argue that they possess a preemptive right over Hess’ interest in the area.
However, Chevron and Hess remain steadfast in their dismissal of these claims, stating in the filing that they believe ExxonMobil and CNOOC’s assertions lack merit. Hess has asserted its intention to vigorously defend its position in the arbitration proceedings, expressing confidence that the arbitration tribunal will rule in its favor. The company affirmed that the Stabroek right of first refusal clause does not extend to the proposed merger.
The roots of this dispute trace back to a contract drafted more than a decade ago, representing an unprecedented challenge in the contemporary history of major oil corporations. The $53 billion deal between Chevron and Hess hangs in the balance as the parties involved navigate the complexities of contractual interpretation and legal maneuvering.
Highlighting the intrigue surrounding the situation, Hess pointed out in the filing that ExxonMobil had initially expressed support for the deal in October, only to reverse its course six months later. This sudden reversal adds layers of complexity to an already contentious dispute.
Hess emphasized that its position is firmly grounded in the explicit terms of the Stabroek contract. Meanwhile, ExxonMobil has accused Chevron and Hess of trying to bypass the private contract.
Zacks Rank & a Key Pick
XOM currently carries a Zack Rank #3 (Hold).
A better-ranked stock in the energy sector is Sunoco LP (SUN - Free Report) , which carries a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sunoco is among the biggest motor fuel distributors in the U.S. wholesale market in terms of volumes. By distributing more than 10 fuel brands via 10,000 convenience stores under long-term distribution contracts, the partnership will continue to generate stable cash flow.
The Zacks Consensus Estimate for SUN’s 2024 earnings per share is pegged at $4.96. The stock has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.