Why Chevron Stock Is Running on Empty Today
(NYSE: CVX) is tanking up, announcing plans to buy Hess (NYSE: HES) in an all-stock deal valued at about $53 billion. Investors get nervous about the risks that come with big-ticket mergers and acquisitions (M), and they're sending Chevron shares down as much as 3% on Monday following the news.
Oil prices are on the rise, and relief from renewables will take time to make a dent. Major oil producers are reacting by expanding their reserves. Earlier this month, Exxon agreed to acquire Pioneer Natural Resources for $64.5 billion, and on Monday Chevron followed with its own major acquisition.
Terms of today's deal call for Chevron to pay 1.025 shares for every Hess share, and to assume about $7 billion in debt. In return, Chevron will gain access to new oil reserves discovered in Guyana, as well as shale assets in North Dakota.
Source Fool.com
Chevron Corp. Stock
With 49 Buy predictions and 1 Sell predictions Chevron Corp. is one of the favorites of our community.
With a target price of 179 € there is a slightly positive potential of 4.86% for Chevron Corp. compared to the current price of 170.7 €.
