Latest news with #Wirth
Calgary Herald
20-07-2025
- Business
- Calgary Herald
How one clause sparked Exxon-Chevron feud that turned personal
Article content (Bloomberg) — The 20-month feud between the Western Hemisphere's two most powerful oil companies over the biggest offshore discovery in a generation hinged on a single clause of a contract few people have ever seen. Article content The passage in a confidential agreement signed more than a decade ago that governs how producers work together in Guyana's booming oil field was the basis for Exxon Mobil Corp.'s arbitration case that threatened to undo Chevron Corp.'s $53 billion takeover of Hess Corp. Article content Article content Article content The ensuing dispute upended Chevron's and Hess's strategies for nearly two years and threatened to mar the legacies of both companies' CEOs. The story behind how it unfolded shows how American oil executives' usual cordial relationships were pushed to the breaking point when a $1 trillion discovery was at stake. Article content Article content 'It should have been resolved much quicker,' Chevron CEO Mike Wirth said in an interview Friday. 'This was a straightforward, plain reading of a contract.' Article content 'We had a clear duty to our investors to consider our preemption rights to protect the value we created,' the company said in a statement. 'We welcome Chevron to the venture.' The following account is based on Bloomberg reporting over nearly two years, including on- and off-the-record conversations with more than two dozen analysts, fund managers, traders and current and former company employees. Article content Article content It began toward the end of 2023, when the US oil industry was basking in the aftermath of the price surge caused by Russia's invasion of Ukraine. In a blow to the clean-energy transition, the war had underscored the continued importance of fossil fuels and furnished producers with record profits. Article content Keen to take advantage, US executives embarked on a corporate takeover spree that would reach nearly $500 billion over just three years. Exxon scored the biggest of them, buying Pioneer Natural Resources Co. for $60 billion in October 2023. Article content Not to be outdone, Chevron announced an agreement to buy Hess for $53 billion less than two weeks later. Hess's minority stake in Guyana's massive Stabroek Block was 'the industry's most attractive, long-lived growth asset' Wirth said on the day of the announcement. It was high praise for a project discovered and operated by its arch-rival, Exxon.
Saudi Gazette
19-07-2025
- Entertainment
- Saudi Gazette
Saudi–Japanese cultural fusion shines at Expo 2025 with 'Bisht Kimono'
Saudi Gazette report TOKYO — In a striking display of cultural dialogue, the Royal Institute for Traditional Arts (Wirth) showcased a unique artwork titled "Bisht Kimono" during the Saudi Cultural Week at Expo 2025 in Osaka, Japan. Held from July 12 to 15, the event is part of Saudi Arabia's broader effort to elevate traditional arts on the global stage, support creative entrepreneurship, and offer immersive live experiences to international audiences. The participation coincides with the "Year of Handicrafts 2025" and celebrates the 70th anniversary of Saudi-Japanese diplomatic relations. The centerpiece of the institute's showcase, "Bisht Kimono", creatively merges the elegance of the traditional Saudi bishtwith the form of the Japanese kimono, symbolizing a harmonious cultural exchange. The live collaboration between Saudi artisan Salman Al-Hamad and Japanese artist Yuho Ohkota resulted in a hybrid garment embroidered with contemporary flair—visually capturing a shared language of heritage and artwork reflects Wirth's mission to reimagine traditional crafts through a modern lens while promoting national identity and cultural such efforts, the institute continues to affirm its leadership in preserving Saudi heritage, nurturing talent, and inspiring new generations to engage with traditional arts both at home and Royal Institute for Traditional Arts plays a pioneering role in supporting and promoting the Kingdom's living treasures, honoring artisans, and safeguarding cultural legacy by fostering appreciation and mastery of traditional arts across generations.
Yahoo
18-07-2025
- Business
- Yahoo
Chevron CEO says Hess deal ruling eases uncertainty for oil industry
-- Chevron Corp. (NYSE:CVX) says the closing of its $53 billion agreement to buy Hess Corp (NYSE:HES). will reduce uncertainty for other deals in the oil industry. The International Chamber of Commerce ruled Friday in favor of Hess and Chevron, eliminating concerns that contracts used for partnerships like the one for Guyana's giant oil field could be used to "peel assets out of a corporate level transaction," according to Chevron Chief Executive Officer Mike Wirth in a Bloomberg TV interview. Wirth emphasized that this ruling is significant for an industry where deal making plays a vital role in success. "We have companies that come into this industry and people who build them, and the way they get rewarded is selling the company," Wirth said following the completion of this major acquisition. "It is in the nature of our industry that transactions are part and parcel with how it functions." Related articles Chevron CEO says Hess deal ruling eases uncertainty for oil industry These Under-the-Radar Stocks Offer Better Risk-Reward Ratio Than Nvidia Surge of 50% since our AI selection, this chip giant still has great potential Sign in to access your portfolio
Yahoo
18-07-2025
- Business
- Yahoo
Chevron closes Hess acquisition after winning Exxon legal battle
By Sheila Dang HOUSTON (Reuters) -Chevron closed its $55 billion acquisition of Hess on Friday after winning a landmark legal battle against larger rival Exxon Mobil to gain access to the largest oil discovery in decades. Chevron CEO Mike Wirth's strategy to turn around his company's lagging performance hinged on the acquisition, one of the largest energy deals in the past decade. The prize is a stake in the prolific Stabroek Block off the coast of Guyana that holds more than 11 billion barrels of oil and is one of the fastest growing oil provinces in the world. "This merger of two great American companies brings together the best in the industry," Wirth said in a statement. Exxon and China's CNOOC, Hess' partners in Guyana, had filed arbitration disputes that claimed they held a pre-emptive right to purchase Hess' stake, which delayed Chevron's closure of the Hess acquisition for over a year. "We disagree with the International Chamber of Commerce (ICC) panel's interpretation but respect the arbitration and dispute resolution process," Exxon said in a statement. "Given the significant value we've created in the development of the Guyana resource, we believed we had a clear duty to our investors to consider our preemption rights to protect the value we created through our innovation and hard work at a time when no one knew just how successful this venture would become," the company added. CNOOC said it was also disappointed with the ruling. There is no appeals process at the International Chamber of Commerce, the court that oversaw the arbitration case. Even as it awaited the arbitration verdict, Chevron was making preparations so it could close the deal with Hess quickly, Reuters previously reported. Information technology workers from Chevron and Hess have met regularly to plan the integration, and Hess employees were informed that they could request a severance package following the deal's close. In an interview with Reuters on Friday, Wirth said converting technology and combining employees from both companies would take a few months. Shares of Chevron and Exxon were marginally lower in morning trading. OILFIELD RICHES The claims from Exxon and CNOOC had kicked off a lengthy legal battle that captured the attention of the global oil industry, shareholders, and attorneys who craft joint operating agreements that govern oil partnerships around the world. The case illustrates the value of the Stabroek Block, which drove profits for the Exxon-led consortium that controls all of its oil output, transformed Guyana into one of the world's fastest-growing economies and still has potential for further oil discoveries. The dispute centered on the interpretation of just several words in the confidential joint operating agreement between Exxon, Hess and CNOOC, experts have told Reuters. "It didn't have to happen this way," Wirth told Reuters. "We were engaged in good faith conversations, actually for months, which ended abruptly when we were notified that they (Exxon) were going to file for arbitration." "The outcome is simple and straightforward, as we expected from the beginning." CNBC, which first reported the news of Chevron's win, cited an interview with Exxon CEO Darren Woods, who said the company was examining the ruling to determine whether to make provisions in contracts to ensure they prevail in future disputes. CNBC also reported Woods said that Exxon's relationship with Chevron in other projects around the world was fine throughout the arbitration proceedings. "This was never a Chevron thing. This was more about getting the contracts enforced the way they were intended," Woods told CNBC. Hess' earnings from Guyana rose to $3.1 billion last year from $1.9 billion in 2023. Chevron's adjusted earnings last year totaled $18.3 billion, down from $24.7 billion in 2023. 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
Los Angeles Times
18-07-2025
- Business
- Los Angeles Times
Chevron prevails in Exxon fight and closes deal to buy Hess
Chevron Corp. won its arbitration battle with Exxon Mobil Corp. and has closed its $53 billion deal to buy Hess Corp. more than 20 months after the takeover was announced. The decision is a major victory for Chevron, ending a period of strategic limbo that hurt its stock and prompted questions over the quality of the company's due diligence when it agreed to buy Hess in October 2023. Chevron Chief Executive Officer Mike Wirth said he would walk away from the deal if they lost the case. 'This merger of two great American companies brings together the best in the industry,' Wirth said in a statement. Hess shares surged as much as 8.8% before the start of regular trading. Chevron rose 4.1%. The clash between North America's biggest energy producers was unprecedented in the modern history of Big Oil, an industry in which companies routinely partner with each other to minimize project risk and share costs. Exxon, which operates and owns 45% of Guyana's offshore Stabroek Block, claimed it had a right of first refusal over the disposition of Hess's 30% stake. Hess and Chevron, however, argued the right didn't apply because their deal was structured as a corporate merger rather than an asset sale. The uncertainty surrounding the deal has been a 'material contributor' to the underperformance of Chevron's stock price compared to its rivals, Wirth said in November. Acquiring Hess and its stake in Guyana significantly increases the quality of Chevron's oil assets beyond the Permian Basin of Texas and New Mexico, narrowing the gap with Exxon, Hedgeye Risk Management, LLC Managing Director Fernando Valle said. 'Adding Guyana was critical for Chevron, because it's go-forward portfolio was paltry outside of the Permian,' Valle said. Both sides had expressed extreme confidence in their opposing positions on the wording of the Guyana contract, which was written more than 15 years ago. 'We wrote these documents — we understood the intent of those documents,' Exxon Chief Executive Officer Darren Woods said in December. 'That gives us a lot of confidence in the position that we've taken.' Wirth and John Hess consistently backed their legal advice throughout the process. The deal's completion is a win for arbitrage traders who were betting on the spread between Hess's share price and the exchange ratio agreed with Chevron. Hedge funds including Millennium Management, Pentwater Capital Management and HBK Investments LP had staked billions of dollars on the deal closing, according to data compiled by Bloomberg. The deal calls for Hess shareholders will receive 1.0250 Chevron shares for each Hess share. Chevron plans intends to issue about 301 million shares of common stock as part of the transaction. The US Federal Trade Commission on Thursday opened the door for John Hess to join Chevron's board, throwing out an order issued last year that barred him from doing so and accused him of colluding with OPEC. 'Mr. Hess is a highly respected industry leader, and our board would benefit from his global experience, relationships and expertise,' a Chevron spokesman said in a statement. Crowley and Wethe write for Bloomberg.
