Thread regarding Chevron Corp. layoffs

This is a likely money grab by XOM. Goldman has reviewed this issue of pre-emptive rights for Guyana in their pre-deal analysis. Does CVX pay XOM to "go away" or pay lawyers to litigate this issue ? I think (unfortunately) it will be cheaper to pay XOM some $$$$. Other Hess assets not nearly as valuable to acquire if Guyana isn't part of the deal.

MW got a taste for failed merger bonuses after Anadarko. Perhaps the HESS deal was cleverly set up to fail from the beginning so he could win another billion dollar fee.

Experience does matter. CVX problems today including M&A are the result of promoting future leaders by driving out experienced talent in 2020 when a more thought out transition plan was needed.

Guyana used standard model form JOA terms. This ensure mergers or sales of all or substantial all of a company remove the pref. Additionally Exxon would have only had 10 days to match Cvxs offer if the pref had in fact been operational. They’d have had to announce that to the market. In short. Nothing to see here. Other than if the Exxon board has approved a Hess counter offer

The terms of the existing JOA could say any number of things, as it is not necessarily restricted by the terms of the Concession agreement with Guyana. However, it is inconceivable that CVX would have gone this far without clearing out any possible ROFR rights of XOM / CNOOC. So either there are no such rights applicable to the HES purchase, or CVX had a major sc--w-up. XOM’s announcement would suggest the latter.

@2pzn, yup, Chevron is painted into a corner. Exxon just wants to make it more costly for Chevron to buy Hess. Should Exxon win out, Chevron will get $1.5 billion from Hess for failing to consummate the deal, (which MW will promptly waste on dividends and stock buy-backs), but Chevron will dearly miss out on that 3 billion BOE reserves it so badly needs.

Esso and CNOOC simply want to squeeze a few hundred million out of MW so he can keep his deal together. They will complete an agreement soon.

Had everyone been in the office this NEVER would have happened. We need people in 5 days a week - MW

looks like hr sent down voters

so predictable

mw BLEW it & needs to go - bod needs replacement (upcoming annual mtg)

can’t wait for hr zombies’ down votes - it’s a badge of honor

Almost all JOA ROFRs preclude merges and acquisitions of the whole company. Unless Exxon negotiated something different with Guyana then they don’t have the right to preempt - they do have the right to make hess and offer tho

Here's a thought - in "talks" with XOM, have MW renew talks he held three years ago with them.

Settle for $195, and retire (evidently the BOD extended this guy past 65).

Just tired of clown car dramatics; btw, WHY hasn't the BOD been held accountable ?

As a poster mentioned below - 'dummies' .... too kind imo.

The poster above is wrong. A total buyout of the co doesn’t circumvent a pref right. This deal is toast most likely. This makes both companies involved look d-mb as well as their advisors (Goldman lol)

A Hess company buyout is not a sale of the Guyana blocks whatsoever and the government there doesn't really like Esso so they will not back their view of the transaction. Drama about nothing, just Esso making noise in the press to mess with our deal.

Smart from Exxon, making sure that a competitor doesn’t get access to a large growth asset … after Oxy and Anadarko, Chevron looks like a rookie in M&A

Without Guyana we better walk, as all the rest held by Hess is declining junk. Chevron’s idea over the last decade that exploration success does not matter because we can just buy into the success’s of others is looking rather naive! We better start seriously looking as the Permian is nearly at peak production and on a short fuse decline curve.

evidently a bidding war may still break out - xom and cnooc could make offers

a bit surprised this news hitting just now

part of the game