2024-05-15 23:52:34 ET
Summary
- The proposed acquisition of Hess Corporation by Chevron will take longer than expected, potentially impacting the deal.
- Hess is a rapidly growing company, with production up 27% in the first quarter, making it an attractive investment.
- The value of Hess is located primarily in the Guyana Partnership.
- There is an expected FPSO every single year for the foreseeable future.
- Cash flow took a giant leap in the current quarter and is expected to take another giant leap every time a new FPSO begins production.
Time means everything to an investor. What happens to an investment during that time period means even more to an investor. In the case of the Hess Corporation's ( HES ) proposed acquisition by Chevron ( CVX ), the whole deal will now take more than one year to close, according to Exxon Mobil ( XOM ) last statement about arbitration . Time is the enemy of any takeover deal because there can be a material change in the time it takes to complete the deal if the deal drags on for a long period of time. Therefore, while I still like the deal and at present can continue the strong buy recommendation, I reserve the right to change my mind if the deal takes too long....
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For further details see:
Hess Corporation: What Has Changed