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
The stock is an absolute favorite of our community with 26 Buy predictions and no Sell predictions.
As a result the target price of 179 € shows a positive potential of 23.21% compared to the current price of 145.28 € for Chevron Corp..
