Chevron Moves Forward With Megadeal for Hess After Winning Exxon Arbitration
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 18 2025
0mins
Should l Buy XOM?
Source: WSJ
Arbitration Ruling: An arbitration panel has allowed Chevron to proceed with its $53 billion acquisition of Hess, dismissing Exxon's claim to bid for Hess's assets in Guyana.
Chevron's Plans: Following the ruling from the International Chamber of Commerce, Chevron intends to quickly finalize the deal initially agreed upon in October 2023.
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Analyst Views on XOM
Wall Street analysts forecast XOM stock price to fall
19 Analyst Rating
12 Buy
7 Hold
0 Sell
Moderate Buy
Current: 149.820
Low
114.00
Averages
132.17
High
158.00
Current: 149.820
Low
114.00
Averages
132.17
High
158.00
About XOM
Exxon Mobil Corporation is an energy provider and chemical manufacturer. The Company’s principal business involves exploration for, and production of, crude oil and natural gas; the manufacture, trade, transport and sale of crude oil, natural gas, petroleum products, petrochemicals and a wide variety of specialty products; and pursuit of lower-emission and other new business opportunities, including carbon capture and storage, hydrogen, lower-emission fuels, Proxxima systems, carbon materials, and lithium. Its Upstream segment explores for and produces crude oil and natural gas. The Energy Products, Chemical Products, and Specialty Products segments manufacture and sell petroleum products and petrochemicals. Energy Products segment includes fuels, aromatics, and catalysts and licensing. Chemical Products segment consists of olefins, polyolefins, and intermediates. Specialty Products segment includes finished lubricants, basestocks and waxes, synthetics, and elastomers and resins.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Increased Market Uncertainty: Iran's threats to attack the Strait of Hormuz, through which 20% of global oil supply passes, could lead to prices soaring above $100 per barrel if the situation escalates, posing significant risks for investors.
- Positive Outlook for Oil Giants: ExxonMobil anticipates a 13% annual earnings growth by 2030 at an average oil price of $65, leveraging its industry-leading cost-saving initiatives, while Chevron expects over 10% free cash flow growth at $70 oil, indicating strong growth potential.
- Focus on Safe Stocks: Given the current market uncertainties, investors should consider large oil companies like ExxonMobil and Chevron, which can benefit from rising oil prices while maintaining profitability even if prices decline.
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See More
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- Geopolitical Risk Signal: Jim Cramer suggests that the decline in major energy stocks, despite Middle East tensions, indicates that the 'geopolitical risk' in crude has peaked, paving the way for a significant stock market rally.
- Oil Price Trend Analysis: Cramer draws parallels to the 1991 Gulf War, noting that oil prices fell sharply when conflict began, suggesting that market expectations for future oil prices may have shifted.
- Market Reaction Observation: He emphasizes that if global energy supply were genuinely at risk, energy stocks would be rising rather than falling, indicating that the market is pricing in a 'defanged Iran' and a return to normal shipping.
- Risk Appetite Return: Cramer believes that the cooling energy sector is the primary catalyst for investors shifting towards high-growth stocks, signaling a return of bullish market sentiment and the continuation of a bull cycle.
See More
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- Surging Oil Prices: WTI crude oil prices have skyrocketed nearly 30% this year to around $75 per barrel, driven by Iran's attempts to halt oil flow from the Middle East, which could tighten global supplies and further elevate prices.
- U.S. Response Measures: The U.S. government is working to ensure oil continues to flow by providing insurance and considering Navy escorts; if successful, this could stabilize prices and prevent them from soaring above $100 per barrel, alleviating market pressure.
- Investment Recommendations: Given the uncertain oil market, investors should focus on safe oil stocks like ExxonMobil and Chevron, both of which are expected to maintain growth even if oil prices cool off, demonstrating strong financial resilience.
See More
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- Economic Crisis Intensifies: Since January, the U.S. has imposed an oil blockade on Cuba, leading to the island facing its biggest economic test since the Soviet Union's collapse, with 32 Cuban soldiers killed in conflicts in Venezuela exacerbating domestic unrest.
- Increased External Threats: President Trump has labeled the Cuban government as an 'unusual and extraordinary threat' and pledged tariffs on any country supplying oil to Cuba, further isolating the nation on the international stage and increasing pressure.
- Humanitarian Crisis Warning: The United Nations has warned of a potential humanitarian 'collapse' in Cuba due to dwindling oil supplies, prompting the government to implement measures to protect essential services and ration fuel for key sectors, highlighting the severity of the economic situation.
- Signs of Diplomatic Negotiation: Despite the tense situation, experts suggest that negotiations may be underway between the U.S. and Cuban governments regarding economic reforms, with President Miguel Díaz-Canel prioritizing economic improvement, indicating Cuba's efforts to adapt to changing geopolitical contexts.
See More
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- Oil Price Surge Impacting Inflation: The Iran war has caused Brent crude prices to spike from approximately $72.50 to over $82, which is expected to add upward pressure on core inflation, potentially leading the Fed to pause its rate cuts and complicating economic recovery efforts.
- New Fed Chair Nomination: Trump has nominated Kevin Warsh to replace current Fed Chair Jerome Powell, with Warsh advocating for interest rates below 3.5%, indicating a strong preference for lower rates that could significantly influence future monetary policy directions.
- Divergence in Fed Opinions: Some Fed voting members express concerns about the economic impact of the Iran situation, particularly regarding rising oil prices, highlighting a clear divergence from Warsh's views and complicating the policy-making process.
- Warsh's Inflation Theory: Warsh posits that inflation primarily stems from excessive government spending and money printing, planning to lower long-term rates by reducing the Fed's financial assets, although modest oil price fluctuations may not significantly impact his theory, potentially posing challenges during his confirmation process.
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