Headlines
Analysts on Chevron winning arbitration over Exxon in Hess deal
Published by Global Banking & Finance Review®
Posted on July 18, 2025
2 min readLast updated: January 22, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on July 18, 2025
2 min readLast updated: January 22, 2026
Chevron wins arbitration against Exxon, securing a $53B Hess acquisition, enhancing its oil assets in Guyana and boosting share performance.
(Reuters) -Chevron will proceed with its $53 billion acquisition of Hess after it prevailed in a landmark legal battle against larger rival Exxon Mobil to gain access to the largest oil discovery in decades off the coast of Guyana.
AJAY PARMAR, OIL AND ENERGY TRANSITION ANALYTICS DIRECTOR AT CONSULTANCY ICIS
"Chevron's win in the arbitration over the Guyana oil assets case is a major coup for the U.S. oil major. It paves the way for its acquisition of Hess and therefore strengthens Chevron's upstream presence in Guyana, Canada and U.S. on-shore... we expect the company to continue to strengthen its portfolio over the coming years."
BIRAJ BORKHATARIA, ANALYST AT RBC CAPITAL MARKETS
"We expect (Chevron's) shares to outperform over the coming weeks... as investors have clarity on the investment case and can focus more on the free-cash flow inflection into 2026-27, as well as the new growth that comes with Hess assets."
"The synergy target is likely to be reviewed at the (Capital Market Day) on November 12th, where Chevron expects to go deeper into its longer-term plans."
JASON GABELMAN, ANALYST AT TD COWEN
"Chevron had suggested when the deal was announced that 8 assets it highlighted of the joint entity (Guyana, GOA, Australia, TCO, Permian, DJ, Bakken, Eastern Med) are core. It is unclear if this still stands, with some likely seeing the Bakken as a divestment candidate."
"Chord Energy and Devon Energy have both been acquisitive in the basin, and we expect incremental interest on future opportunities either with Chevron as a consolidator or interest in divesting."
PHILLIPS JOHNSTON, ANALYST AT CAPITAL ONE SECURITIES
"The ruling thus ends a saga that has been going on for 16 months when Exxon first formally attempted to block the merger agreement in March 2024. Since the deal was first announced on October 23, 2023, the total shareholder return for Hess has been -6% vs -2% for Chevron, +7% for Exxon, and -10% for the E&P index (all prior to today's trading)."
(Reporting by Seher Dareen in London, Vallari Srivastava and Pooja Menon in Bengaluru; Editing by Louise Heavens)
Chevron won the arbitration against Exxon Mobil, allowing it to proceed with its $53 billion acquisition of Hess.
The ruling strengthens Chevron's upstream portfolio and provides clarity for investors regarding the company's future cash flow and investment strategy.
The merger agreement was first announced on October 23, 2023.
Analysts expect Chevron's shares to outperform in the coming weeks as investors gain clarity on the company's investment case.
Chevron identified eight core assets in the joint entity, which are crucial for its long-term plans and growth strategy.
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