Latest news with #HessCorp
Bloomberg
23-05-2025
- Business
- Bloomberg
Traders Wager $10 Billion on Chevron-Hess Deal Beating Exxon Case
Merger-arbitrage funds' biggest wager of the year faces a crucial test in the coming days, as a private arbitration panel begins hearing Exxon Mobil Corp.'s challenge to Chevron Corp.'s $53 billion takeover of Hess Corp. The dispute — centered on Exxon's claim to Hess's stake in a prolific oil field off the coast of Guyana — has been a major overhang on the deal since it was announced in 2023. Now, after over a year of claims and counterclaims, the saga appears to be nearing a conclusion.
Yahoo
20-05-2025
- Business
- Yahoo
Continental Resources Files a $69 Million Lawsuit Against Hess Midstream
Continental Resources, a petroleum and natural gas exploration and production company headquartered in Oklahoma City, filed a lawsuit against Hess Corp (NYSE:HES) in federal court. The latter is accused of manipulating internal agreements and inflating midstream fees, extracting up to $69 million at the expense of its partners. The lawsuit directly implicates Hess Midstream LP (NYSE:HESM). A worker measuring crude oil inside a rail tank car. Hess Midstream LP (NYSE:HESM) owns, operates, develops, and acquires midstream assets and provides fee-based services to Hess and third-party customers in the United States. Hess Corp (NYSE:HES) holds a 38% stake in Hess Midstream LP (NYSE:HESM). Hess structured contracts with its wholly owned subsidiaries, including Hess Midstream Partners, in a way that diverted value from upstream assets to midstream operations. Continental is a non-operating working interest owner in close to 483 wells operated by Hess Bakken Investments in North Dakota's Williston Basin. The company alleges it has been financially disadvantaged owing to the increased service fee that does not match the market rates. As per the complaint, these excessive midstream charges have significantly reduced Continental's net hydrocarbon revenues. The firm estimates losses ranging between $34 million and $69 million because of these transactions. Hess Corp is yet to respond publicly to the allegations, while Continental declined to comment on ongoing litigation. While we acknowledge the potential of HESM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than HESM and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
- Business
- Yahoo
Continental Resources files lawsuit against Hess over alleged $69m fraud
Continental Resources has reportedly initiated legal action against Hess, alleging that the company has been defrauded out of as much as $69m, according to a report by Reuters. The lawsuit, filed in a federal court in Houston, accuses Hess of inflating midstream service fees via transactions with its subsidiaries. These transactions affected Continental's revenue from oil and gas production wells, in which the company holds a non-operating working interest. The litigation points to Hess' operation of approximately 483 wells in the Williston Basin, North Dakota. According to the lawsuit, net revenues for hydrocarbons have been significantly reduced due to the excessive service fees paid to Hess Midstream Partners, the report said. Continental, based in Oklahoma, claims that Hess has prioritised the transfer of value to its midstream assets, neglecting the best interests of non-operating working interest owners. Hess Midstream, in which Hess Corp holds a 38% interest, has seen an increase in throughput volumes across gas processing, oil terminals and water gathering, as reported in its earnings last month. The financial impact on Continental is substantial, with an estimated loss of revenue ranging from $34m to $69m, according to the lawsuit. Continental has stated that it does not comment on pending litigation. Meanwhile, Hess has not provided a response to the allegations. In a related development, an arbitration is scheduled for 26 May concerning the dispute between Exxon and Chevron over Chevron's proposed $53bn acquisition of Hess. This acquisition, which includes the significant Stabroek block off the coast of Guyana, has been a contentious issue between the two leading US oil producers for the past 18 months. Exxon, which filed the arbitration claims in March last year, operates the Stabroek block with a 45% interest, alongside CNOOC with a 25% stake. "Continental Resources files lawsuit against Hess over alleged $69m fraud" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
19-05-2025
- Business
- Reuters
US oil producer Continental Resources claims Hess defrauded it out of $69 million
HOUSTON, May 19 (Reuters) - U.S. shale producer Continental Resources has filed a lawsuit against Hess Corp (HES.N), opens new tab alleging that it was defrauded out of up to $69 million through a series of deals the well operator conducted with its subsidiaries. Continental said that Hess, which operates hundreds of wells in North Dakota, artificially inflated midstream service fees by entering into agreements with its own subsidiaries. Net revenues for hydrocarbons from the wells, in which Continental holds a non-operating working interest, were far below market value due to excessive service fees paid to Hess Midstream Partners, the lawsuit said. "Hess Corp has transferred value from its upstream assets to its midstream assets rather than operate with the best interests of non-operating working interest owners in mind," said the lawsuit filed in a federal court in Houston. Hess Bakken Investments, a Hess subsidiary, operates about 483 producing wells in the Williston Basin in which Continental owns a working interest. Continental is based in Oklahoma City, Oklahoma. Hess Corp has a 38% interest in Hess Midstream, which owns oil, gas and produced water handling assets primarily in the Bakken and Three Forks shale plays, Continental said. As a result, Continental said, it and other non-operating working interest owners in those wells bear a larger financial burden than Hess for midstream fees. Continental has been deprived of about $34 million to $69 million of revenue for oil and gas production, the filing said. Hess Midstream's throughput volumes rose 8% for gas processing, 7% for oil terminaling and 9% for water gathering in the first quarter, compared with the year-ago period, mainly due to higher production, the company said in its earnings report last month. Continental Resources said it does not comment on pending litigation. Hess did not immediately respond to requests for comment.
Yahoo
13-05-2025
- Business
- Yahoo
Tariffs Derail Hess Toy Launch -- Could Chevron's Mega Deal Face Delays Too?
Hess Corp. (NYSE:HES), the oil producer behind the iconic green-and-white toy trucks, just hit pause on its 2025 Miniature Collection launch. The company emailed customers saying the planned June 2nd release is now delayed, citing shifts in U.S. trade policy. A new date hasn't been confirmed. While the toys are a nostalgic side hustle, they're also a symbol of Hess' long-standing consumer connectionand this disruption drops right as retailers start locking in year-end holiday inventory. The timing isn't random. About 80% of U.S. toy imports come from China, which was recently slapped with a 145% tariff under Trump's new trade measures. That rate was walked back to 30% for a 90-day window to allow negotiation, but the whiplash is real. For companies like Hess, that uncertainty is now baked into global logistics planning. Even if tariff talks improve, ripple effects could linger through the rest of the yearespecially for consumer-facing brands navigating overseas supply chains. Meanwhile, Chevron's (NYSE:CVX) pending takeover of Hessfirst announced in 2023remains in motion. Hess has said the toy truck tradition will continue post-merger, but with supply shocks now in play, investors watching the energy sector's M&A wave may be asking new questions. Will operational delays bleed into strategic timelines? Could near-term consumer disruption signal deeper friction in cross-border execution? For now, the trucks are parked. But the broader impact may still be unfolding. This article first appeared on GuruFocus.
