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Since our shareholders are getting Chevron stock, we get to participate in the upside, and also get a higher dividend," he said. He added that Hess shareholders who keep their shares in their combined company will see their dividend rise from $1.75 to $6 per share following the close of the deal. Exxon and Chevron are keen on these deals because they want to avoid the risk of exploring unproven reserves as oil and gas become scarcer. Exxon and Chevron had $29.5 billion and $9.3 billion in cash, respectively, as of the end of June. Keeping dividends and share buybacks strong helps compensate existing Exxon and Chevron shareholders for the dilution incurred in the all-stock acquisitions.
Persons: Hess, John Hess, Andrew Dittmar, David French, Greg Roumeliotis, Marguerita Choy Organizations: Exxon Mobil, Chevron, Exxon, Natural Resources, PDC Energy, Noble Energy, Morningstar, Anadarko, Occidental Petroleum, Thomson Locations: Ukraine, U.S, Guyana, New York
TOKYO (AP) — Shares mostly rose Tuesday in Asia after Wall Street wobbled to a mixed close as yields on U.S. Treasury bonds fell back after creeping above 5%. Political Cartoons View All 1215 ImagesHong Kong's Hang Seng dropped 0.8% to 17,033.00, while the Shanghai Composite advanced 0.8% to 2,963.70. Lower bond yields tend to most help stocks of companies promising big growth far in the future or those seen as the most expensive. Treasury yields help dictate how much investors pay for everything from stocks to corporate bonds to cryptocurrencies. While worries about higher Treasury yields and the war in Gaza are weighing on markets, strong corporate profits and the resilient U.S. economy have helped to offset such pressures.
Persons: Sydney's, Korea's Kospi, Hang Seng, Taiex, Brent, it's, Hess Organizations: TOKYO, , Wall, Treasury, Nikkei, Shanghai, Dow Jones, Nasdaq, Nvidia, Microsoft, Federal Reserve, New York Mercantile Exchange, Energy, Chevron, Exxon Mobil, Natural Resources, Apple, Technology, General Motors, U.S . Locations: Asia, Tokyo, Sydney, Seoul, Shanghai, Taiwan, Hong Kong, Israel, U.S, Gaza, Iran
London CNN —Global demand for oil, natural gas and coal — and the carbon pollution they generate — are expected to peak later this decade, according to a new report by the International Energy Agency. Driving the shift will be the “phenomenal rise” of clean sources of energy, the Paris-based agency said in its annual World Energy Outlook report, published Tuesday. The world’s second biggest economy — and largest energy consumer — has reached an “inflection point,” the IEA said, with its total energy demand set to peak around the middle of the decade. “We are today facing a major geopolitical crisis in the Middle East that could shock oil markets once again and deeply, because many oil producing countries are in that region,” Birol told reporters. “This comes on top of the insecurity that we had in the natural gas markets… after the invasion of Ukraine by Russia,” he added.
Persons: it’s, ’ —, Fatih Birol, , Hess, Brent, Birol, ” Birol, Organizations: London CNN — Global, International Energy Agency, Energy, , Organization of, Petroleum, , ExxonMobil, Chevron, IEA Locations: Paris, China, Israel, Ukraine, Russia, Northern Hemisphere
Chevron and Exxon Might Have Kicked Off an Oil Land Grab
  + stars: | 2023-10-23 | by ( Jinjoo Lee | ) www.wsj.com   time to read: 1 min
The smell of mergers and acquisitions is in the air following more than $110 billion worth of oil megadeals this month— Chevron ’s agreement to buy Hess and Exxon Mobil’s deal for Permian giant Pioneer Natural Resources . Who’s next? Deal talks are already under way. Devon Energy , another top Permian producer, is said to be eyeing targets that include Marathon Oil and CrownRock , according to a report from Bloomberg. Gas producer Chesapeake Energy is reportedly considering an acquisition of Southwestern Energy , according to Reuters.
Persons: Who’s Organizations: Chevron, Hess, Exxon, Natural Resources, Devon Energy, Marathon, Bloomberg . Gas, Chesapeake Energy, Southwestern Energy, Reuters
Chevron to Buy Hess for $53 Billion
  + stars: | 2023-10-23 | by ( Collin Eaton | Peter Stiff | ) www.wsj.com   time to read: 1 min
Chevron also said that it would boost returns to shareholders. Photo: Philip Gostelow/Bloomberg NewsChevron said it would buy Hess in an all-stock deal worth $53 billion, the second major oil tie-up this month following Exxon Mobil ’s deal to buy Pioneer Natural Resources . The U.S. energy company said buying Hess would upgrade and diversify its portfolio, marking Chevron’s entrance into an Exxon-led partnership overseeing a generational oil find in Guyana, while picking up additional U.S. shale assets largely in North Dakota. Chevron also highlighted the attraction of Hess’s assets in the Gulf of Mexico and its natural-gas business in Southeast Asia.
Persons: Philip Gostelow, Hess Organizations: Chevron, Bloomberg, Exxon Mobil ’, Natural Resources, Exxon Locations: U.S, Guyana, North Dakota, Chevron, Gulf of Mexico, Southeast Asia
VIEW Chevron to buy Hess Corp for $53 bln in all-stock deal
  + stars: | 2023-10-23 | by ( ) www.reuters.com   time to read: +4 min
A 3D printed natural gas pipeline is placed in front of displayed Chevron logo in this illustration taken Feb. 8, 2022. The transaction might also create a peculiar coexistence of the United States' two leading oil majors in Guyana... Hess is geared towards crude production, with oil accounting for 60% of its current output which fits in very nicely with Chevron's similarly oil-focused portfolio. On the deal itself, the Chevron-Hess merger is expected to have a significant impact on the shale oil industry with Chevron becoming the second-largest shale producer in the United States. The merger is also likely to lead to increased M&A and industry consolidation in the North America shale sector.
Persons: Dado Ruvic, bode, Hess, John Hess, PETER MCNALLY, VIKTOR KATONA, KPLER Hess, Chevron, ROBIN HELANDER, Seher Dareen, Ron Bousso, Dmitry Zhdannikov, Mark Potter Organizations: Chevron, REUTERS, Chevron Corp, Hess Corp, Exxon Mobil, ROYAL, Third, Natural Resources, Hess, Thomson, & $ Locations: Guyana, Chevron, North Dakota, United States, North America
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with Chevron CEO Mike Wirth and Hess CEO John HessChevron CEO Mike Wirth and Hess CEO John Hess join 'Squawk on the Street' to discuss Chevron's deal to buy Hess for $53 billion in stock, the second proposed mega-merger among the biggest U.S. oil players after Exxon Mobil bid $60 billion for Pioneer Natural Resources earlier this month.
Persons: Mike Wirth, Hess, John Hess Chevron, John Hess Organizations: Chevron, U.S, Exxon Mobil, Natural Resources
Chevron, the U.S. energy giant, said Monday that it had agreed to acquire Hess, a medium-sized rival, in an all-stock deal valued at $53 billion. The deal marks a further consolidation of the energy industry, especially in the United States, where smaller companies appear to be taking advantage of relatively high oil prices to join forces with bigger players. The transaction follows Exxon Mobil’s $60 billion purchase of shale driller Pioneer Natural Resources earlier this month, another sign of confidence among large industry players in the future of fossil fuels even as policymakers promote cleaner energy sources. Hess would add about 10 percent to Chevron’s overall oil and gas production of about 3 million barrels a day. Mike Wirth, Chevron’s chairman and chief executive, said in a statement that the deal enhances the company’s operations “by adding world-class assets.”
Persons: Hess, Mike Wirth Organizations: Chevron, Exxon Mobil’s, Resources, Chevron’s Locations: U.S, United States
CNBC's Jim Cramer on Monday said he sees a bull market in oil and gas. He said oil stocks are increasing in value thanks to two major oil company mergers as well as the rising price of crude. "I'd argue that there's always a bull market somewhere and right now it's in the oil and gas cohort group," Cramer said. Chevron announced Monday it would buy Hess in a deal worth $53 billion. These recent mergers reminded Cramer of oil takeovers in the early 1980s, when he said major companies realized "it was cheaper to drill for oil on Wall Street than in the ground."
Persons: CNBC's Jim Cramer, there's, Cramer, Hess Organizations: Chevron, Exxon Mobil, Natural Resources
Morning Bid: Markets juggle 5% yields and 150 yen
  + stars: | 2023-10-23 | by ( ) www.reuters.com   time to read: +5 min
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 11, 2023. REUTERS/Brendan McDermid/File Photo Acquire Licensing RightsA look at the day ahead in U.S. and global markets from Mike DolanPartly unwinding pre-weekend safety hedges related to the Middle East conflict, world markets are back focused on some critical macro priced levels and milestones that may once again define the week. The dollar retained its bid as a result and continued to probe the 150 yen level many suspect the Bank of Japan will be keen to protect against with open-market yen buying. But even these megacaps are still in thrall to the worrying squeeze in U.S. bond markets and the breach of the 5% threshold on 10-year tenors on Monday. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.
Persons: Brendan McDermid, Mike Dolan, Goldman Sachs, thrall, that's, That's, Sergio Massa, Javier Milei, Maria Corina Machado, Hess, Berkley, Brown, Susan Fenton Organizations: New York Stock Exchange, REUTERS, Bank of Japan, European Central Bank, Industrial, China, Goldman, Microsoft, Meta, Federal Reserve, Economy, Banco BBVA Argentina, Peronist, Massa, Venezuelan, Chevron, Exxon, Natural Resources, Brown, Cadence, Packaging Corp of America, Fed, Bank of Israel, Trade Organization, Treasury, Reuters, Thomson Locations: New York City, U.S, Gaza, China, Taiwan, outflows, 50bps, York, America, Venezuela, Geneva
Market Movers rounded up the latest reactions to Chevron 's stock moves from the pros, including Jim Cramer , as another mega-merger in the energy sector was announced Monday. Chevron is acquiring Hess for $53 billion and the deal comes just under two weeks after Exxon Mobil bought Pioneer Natural Resources for $59.5 billion. Chevron CEO Mike Wirth and Hess CEO John Hess joined CNBC on Monday morning to discuss the all-stock, $171 per share transaction and what it will mean for investors. Chevron is acquiring Hess for $53 billion and the deal comes just under two weeks after Exxon Mobil bought Pioneer Natural Resources for $59.5 billion. Chevron CEO Mike Wirth and Hess CEO John Hess joined CNBC on Monday morning to discuss the all-stock, $171 per share transaction and what it will mean for investors.
Persons: Jim Cramer, Hess, Mike Wirth, John Hess Organizations: Chevron, Exxon Mobil, Natural Resources, CNBC, Movers Locations: Chevron
Chevron-Hess or Exxon-Pioneer: Who got the better deal?
  + stars: | 2023-10-23 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailChevron-Hess or Exxon-Pioneer: Who got the better deal? Neal Dingmann, managing director of energy research at Truist, joins 'Power Lunch' to discuss oil consolidation, geo-political risk surrounding oil prices, and more.
Persons: Neal Dingmann Organizations: Chevron, Hess, Exxon, Pioneer
Chevron agrees to buy Hess for $53 billion
  + stars: | 2023-10-23 | by ( David Goldman | ) edition.cnn.com   time to read: +3 min
New York CNN —Chevron announced Monday that it has agreed to buy rival Hess in yet another oil industry consolidation deal. Hess (HES) also has large oil assets in Guyana, which Chevron said would help grow its production over the next decade. Chevron said that it would increase buybacks of its stock by $2.5 billion to $20 billion a year. Shares of Chevron slipped 3% in premarket trading following the deal announcement, while Hess’ shares were slightly higher. Since the start of 2022, just ahead of the big run-up in oil prices following Russia’s full-scale invasion of Ukraine, Hess shares are up 120%, while Chevron shares are up 42%.
Persons: Hess, Chevron, , Mike Wirth, Wirth, Critics, It’s, Biden, John Hess, — Chris Isidore Organizations: New, New York CNN, Chevron, ExxonMobil, Exxon, Anadarko Petroleum Locations: New York, Texas, Guyana, Ukraine, Marathon
Chevron’s $53 billion deal is risky Exxon copycat
  + stars: | 2023-10-23 | by ( Robert Cyran | ) www.reuters.com   time to read: +4 min
The $318 billion oil giant said Monday it would buy New York-based Hess (HES.N) for $53 billion in an all-stock deal. The main appeal for Chevron is Hess’s 30% stake in a consortium producing oil offshore in Guyana. Importantly, Chevron is catching up to Exxon, which runs and owns 45% of the same Guyana consortium. Higher production in Guyana after 2024 will increase Chevron’s returns, assuming the price of oil remains favorable. Hess owns a 30% share in a consortium in Guyana alongside Exxon, which owns a 45% interest, and Chinese oil company CNOOC, which owns the remaining 25%.
Persons: Hess, It’s, Mike Wirth, Scott Sheffield, John Hess, Hess’s, Lauren Silva Laughlin, Aditya Sriwatsav Organizations: Reuters, Chevron, Exxon Mobil, New York Stock Exchange, Natural Resources, drillers, Brent, Exxon, Pioneer, Exxon Mobil’s, Thomson Locations: New York, Texas, Guyana, Gulf of Mexico
Chevron said on Monday it agreed to buy Hess for $53 billion in stock, the second proposed mega-merger among the biggest U.S. oil players after Exxon Mobil bid $60 billion for Pioneer Natural Resources earlier this month. Chevron has offered 1.025 of its shares for each Hess share held, or $171 per share, implying a premium of about 4.9% to the stock's last close. Exxon and partners Hess and China's CNOOC are the only active oil producers in the country. Hess Corp CEO John Hess is expected to join Chevron's board of directors once the deal closes around the first half of 2024. Goldman Sachs was the lead adviser to Hess while Morgan Stanley was the lead adviser to Chevron.
Persons: Hess, China's, John Hess, Chevron, Goldman Sachs, Morgan Stanley Organizations: Chevron, U.S, Exxon Mobil, Natural Resources, Exxon, RBC, Pioneer, Hess Corp Locations: U.S, Guyana, Brazil, Mexico
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., October 20, 2023. The yield on the note touched the July 2007 milestone that it briefly attempted to scale last week. Of the 86 companies in the S&P 500 that have reported earnings so far in the third quarter, 78% have been above analyst estimates, according to the LSEG data. The benchmark stock index is down 8% from late July, when it hit its highest for the year, though still up 10% year-to-date. ET, Dow e-minis were down 224 points, or 0.67%, S&P 500 e-minis were down 31.5 points, or 0.74%, and Nasdaq 100 e-minis were down 129.75 points, or 0.88%.
Persons: Brendan McDermid, Hess, Hadjikyriacos, Benjamin Netanyahu, Jerome Powell, Piper Sandler, Morgan, Shubham Batra, Shashwat Chauhan, Nivedita Bhattacharjee, Maju Samuel Organizations: New York Stock Exchange, REUTERS, Chevron, Walgreens, Dow, Nasdaq, XM, Apple, Microsoft, Nvidia, Intel, Exxon Mobil, General Motors, Federal, Market, Dow e, Walgreens Boots Alliance, Hess Corp, Thomson Locations: New York City, U.S, megacap, Israel, Gaza, Bengaluru
NEW YORK (AP) — Chevron is buying Hess Corp. for $53 billion and it’s not even the biggest acquisition in the energy sector this month as major producers seize the initiative while oil prices surge. Chevron said Monday that the acquisition of Hess adds a major oil field in Guyana as well as shale properties in the Bakken Formation in North Dakota. Hess shareholders will receive 1.0250 shares of Chevron for each Hess share. The boards of both companies have approved the Hess deal, which is targeted to close in the first half of next year. Shares of Chevron Corp., based in San, Ramon, California, declined more than 3% before the opening bell Monday.
Persons: Hess, China’s CNOOC, John Hess Organizations: Chevron, Hess Corp, Exxon Mobil, Natural Resources, China’s, Hess, Chevron Corp Locations: Russia, Ukraine, Guyana, North Dakota, American, Qatar, United States, Mexico, Norway, South America, Australia, San, Ramon , California, New York City
Every weekday the CNBC Investing Club with Jim Cramer holds a Morning Meeting livestream at 10:20 a.m. "There is a strong belief in this country that geopolitical events will crush the stock market," Jim Cramer said Monday. But the stock yields a 4.65% dividend, and management is buying back $1 billion to $1.5 billion in stock each quarter. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER .
Persons: Jim Cramer, Morgan Stanley, Hess, James Gorman, Jim, Jim Cramer's Organizations: CNBC, Treasury, Revenues, Chevron, Federal Reserve, Apple, Hai Precision Industry Co Locations: China, Beijing
Meanwhile, Meta has struggled with applying its content policies fairly across its platforms, including Facebook and Instagram, according to The Wall Street Journal. Experts say companies often find themselves out of their depth in talking about the knotty topic and that sometimes there’s little benefit to rushing out a statement. Some companies, especially those without operations in the Middle East, have chosen not to speak. In related news: How diplomats from the U.S., Qatar and elsewhere helped free two Americans taken hostage by Hamas. The two were far apart earlier this month on issues including streaming payouts and the use of artificial intelligence.
Persons: Dave Chappelle sparred, driller, Hess Organizations: U.S, Social, Israel, Meta, Facebook, Wall Street, ” Employers, Corporate, Web, Creative Artists Agency, Hamas, Exxon Mobil’s, Natural Resources, Republicans, SAG, . Tax, Big Tech Four, Microsoft, Apple, Nvidia, Nasdaq Locations: Israel, Gaza, U.S, Qatar, Ukraine, Chevron’s, Guyana, Texas, New Mexico
Speculation that Chevron and Exxon might try to buy rivals BP (BP.L) and Shell (SHEL.L) intensified over the last two years as the European majors underperformed their U.S. rivals. Investors punished the European companies for their pivot towards renewables and low carbon energy while rewarding the U.S. companies' focus on oil and gas production that drove record profits last year. The oil industry last went through an era of major consolidation in the late 1990s when Exxon, Shell, BP and France's TotalEnergies merged with rivals to create huge integrated companies. A senior industry source close to the issue, as well as analysts and investors dismissed any imminent U.S. purchase of European rivals. Some European investors have also campaigned for energy companies to shift their business models to help tackle climate change.
Persons: Hess, Dado Ruvic, Tyler Tebbs, Bernard Looney, Lucas Herrmann, Shell's, Exxon's, Ron Bousso, Simon Webb, Barbara Lewis Organizations: REUTERS, Chevron, Hess, LONDON, Exxon Mobil, Exxon, BP, Shell, Investors, France's, Natural Resources, MKP Advisors, BNP, Reuters, European, Thomson Locations: Ukraine, Chevron, U.S
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailHess CEO John Hess on Chevron deal: Strategic combination creates the premier oil and gas companyChevron chairman and CEO Mike Wirth and Hess Corp. CEO John Hess join 'Squawk on the Street' to discuss Chevron's deal to buy Hess for $53 billion in stock, the second proposed mega-merger among the biggest U.S. oil players after Exxon Mobil bid $60 billion for Pioneer Natural Resources earlier this month.
Persons: John Hess, Mike Wirth, Hess Organizations: Chevron, Hess Corp, U.S, Exxon Mobil, Natural Resources
Speculation that Chevron and Exxon might try to buy rivals BP (BP.L) and Shell (SHEL.L) intensified over the last two years as the European majors underperformed their U.S. rivals. Investors punished the European companies for their pivot towards renewables and low carbon energy while rewarding the U.S. companies' focus on oil and gas production that drove record profits last year. The oil industry last went through an era of major consolidation in the late 1990s when Exxon, Shell, BP and France's TotalEnergies merged with rivals to create huge integrated companies. A senior industry source close to the issue, as well as analysts and investors dismissed any imminent U.S. purchase of European rivals. Some European investors have also campaigned for energy companies to shift their business models to help tackle climate change.
Persons: Hess, Dado Ruvic, Tyler Tebbs, Bernard Looney, Lucas Herrmann, Shell's, Exxon's, Ron Bousso, Simon Webb, Barbara Lewis Organizations: REUTERS, Chevron, Hess, LONDON, Exxon Mobil, Exxon, BP, Shell, Investors, France's, Natural Resources, MKP Advisors, BNP, Reuters, European, Thomson Locations: Ukraine, Chevron, U.S
Chevron — Chevron shares fell 3% after the energy giant agreed to buy Hess in a $53 billion all-stock deal , or $171 per share. Walgreens Boots Alliance — Shares popped 5.4% on Monday after JPMorgan upgraded shares to overweight from neutral and raised its price target. Beauty — Shares added 5% after Raymond James upgraded shares to strong buy from outperform in a Monday note. Spirit AeroSystems — The aerospace company's shares gained 4.8% after Bernstein raised its rating on shares to outperform from market perform. FMC Corp — The insecticide company's shares tumbled 12% after FMC issued third-quarter guidance that's lower than what it originally called for.
Persons: Hess, Okta, Pinterest, Raymond James, Olivia Tong, Tong, Bernstein, Pat Shanahan, EngageSmart, Stonepeak, CNBC's Pia Singh, Samantha Subin, Alex Harring, Sarah Min Organizations: Chevron — Chevron, Chevron, Exxon Mobil, Natural Resources, Citi, Evercore, Stifel, Walgreens, JPMorgan, Vista Equity Partners, Textainer, Clean Holdings, FMC Corp, FMC Locations: Guyana, U.S, America
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailGuyana is the best asset in global oil, says top energy analyst Paul SankeyPaul Sankey, lead analyst at Sankey Research, joins 'Squawk on the Street' to discuss his thoughts on the recent deal between Chevron and Hess, why he didn't think Chevron could acquire Hess, and more.
Persons: Paul Sankey Paul Sankey, Hess Organizations: Guyana, Sankey Research, Chevron, Hess
Chevron , Hess — Chevron shares slumped more than 2% after the oil giant said its buying smaller rival Hess in an all-stock deal totaling $53 billion, or $171 a share. Hess shares moved slightly higher. Walgreens Boots Alliance — The pharmacy operator rose nearly 3% after JPMorgan upgraded Walgreens Boots Alliance shares to overweight from neutral. Salesforce — The software giant lost nearly 2% after Piper Sandler downgraded shares to neutral from overweight, citing heightened execution and M & A risks. Bank of America downgraded Alcoa to a neutral rating and slashed its price target, citing concerns of a near-term earnings decline.
Persons: Hess, Stonepeak, Piper Sandler, Roche, , Jesse Pound Organizations: Hess, Chevron, Apple, Global Times, Walgreens, Alliance, JPMorgan, Roivant Sciences, Pfizer, Telavant Holdings, Citi, Evercore, Alcoa, Bank of America Locations: Chevron, China
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