Last October, (NYSE: CVX) made a bold move to counter a similar one by rival ExxonMobil (NYSE: XOM). It agreed to acquire Hess (NYSE: HES) in a $60 billion megadeal shortly after Exxon decided to buy Pioneer Natural Resources for $64.5 billion. The main draw was Hess' 30% stake in the Exxon-operated Stabroek block offshore Guyana. It would help enhance and extend Chevron's growth outlook into the 2030s.

However, Exxon and its other partner in Guyana, China's CNOOC, now say the deal will trigger a change-of-control provision, enabling them to increase their stakes in Stabroek. This issue could delay or potentially derail Chevron's deal to acquire Hess. Here's a closer look at the situation and whether Chevron would still be a good oil stock to buy if it can't acquire Hess.

When Chevron unveiled its megadeal for Hess, the oil company highlighted: "The acquisition of Hess upgrades and diversifies Chevron's already advantaged portfolio. The Stabroek block in Guyana is an extraordinary asset with industry-leading cash margins and low carbon intensity that is expected to deliver production growth into the next decade." The company noted that the deal would give it a 30% interest in that block, which contains more than 11 billion barrels of oil equivalent discovered recoverable resources. The field produces high cash margins, has a strong production growth profile, and has potential upside from future oil discoveries. It drove Chevron's view that the deal would increase its estimated production and free-cash-flow growth rates over the next five years while extending its growth outlook into the 2030s.

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Source Fool.com