Why Chevron Stock Is Running on Empty Today
(NYSE: CVX) is tanking up, announcing plans to buy Hess (NYSE: HES) in an all-stock deal valued at about $53 billion. Investors get nervous about the risks that come with big-ticket mergers and acquisitions (M), and they're sending Chevron shares down as much as 3% on Monday following the news.
Oil prices are on the rise, and relief from renewables will take time to make a dent. Major oil producers are reacting by expanding their reserves. Earlier this month, Exxon agreed to acquire Pioneer Natural Resources for $64.5 billion, and on Monday Chevron followed with its own major acquisition.
Terms of today's deal call for Chevron to pay 1.025 shares for every Hess share, and to assume about $7 billion in debt. In return, Chevron will gain access to new oil reserves discovered in Guyana, as well as shale assets in North Dakota.
Source Fool.com
Chevron Corp. Aktie
Überwältigende Zustimmung für Chevron Corp. mit ausschließlich Buy-Einschätzungen.
Ein Kursziel von 179 € für Chevron Corp. könnte zu einer Steigerung von mehr als 20% gegenüber dem aktuellen Kurs von 133.6 € führen.
