Chevron Remains Confident It Will Close This Needle-Moving Acquisition
Chevron's (NYSE: CVX) share price has underperformed oil prices and other energy stocks over the past few months. A big factor driving that relative underperformance is the uncertainty surrounding its massive acquisition of (NYSE: HES). That's after rival ExxonMobil (NYSE: XOM) launched an arbitration case to assert its rights to buy Hess' stake in the Stabroek block offshore Guyana, which Exxon operates.
Chevron doesn't think Exxon's case has any merit, and it's confident it will close the Hess deal later this year. That acquisition could really move the needle for the oil stock in the coming years.
During its recent first-quarter conference call, Chevron's management team discussed the progress made in closing the Hess deal. CEO Mike Wirth stated: "The merger with Hess is advancing, and we intend to certify substantial compliance with the FTC second request in the coming weeks. We believe that a pre-emption right (that Exxon is attempting to establish) does not apply to this transaction and are confident this will be affirmed in arbitration."
Source Fool.com
Hess Corp. Stock
Based on 12 Buy predictions and 13 Sell predictions the sentiment towards Hess Corp. is rather balanced.
On the other hand, the target price of 162 € is above the current price of 138.74 € for Hess Corp., so the potential is actually 16.77%.
