Exxon Mobil CorporationXOM CEO Darren Woods has refuted speculation of the company’s interest in acquiring Hess Corporation.
Instead, Exxon is currently focused on securing preemption rights over Hess’ Guyana assets amidst a contentious dispute with Chevron Corporation, as per a report by Reuters.
Speaking publicly for the first time regarding an arbitration case that could potentially thwart Chevron’s $53 billion acquisition of Hess, Woods mentioned that Exxon’s intentions do not align with a bid for Hess.
Exxon’s primary objective is to “evaluate that value and act in the best interest of Exxon Mobil shareholders, considering the substantial investments made and the efforts exerted towards success,” Woods emphasized.
The report indicates that Hess and Chevron have expressed opposition to Exxon’s interpretation of the joint operating agreement governing the Exxon, Hess, and CNOOC Ltd consortium overseeing Guyana’s oil production.
In October 2023, Chevron announced a deal to acquire Hess for $53 billion at a valuation of $171 per share 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 transaction.
According to the report, this regulatory request has postponed the anticipated closing date to at least the middle of the current year.
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Price Action: XOM shares are up 1.09% at $112.48 as of the last check on Monday.
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