Oil Stocks Drop Despite Major Chevron-Hess Deal

Amid lower crude oil prices, U.S. oil stocks and oil-tracking exchange-traded funds ETF opened lower on Monday, and even Hess’s shares slid after Chevron’s announcement it would buy the smaller U.S. oil firm in an all-stock deal. Hess Corporation NYSE HES was down by 0.55% in pre-market trade, despite being the target of the Chevron acquisition, due to the all-stock nature of the announced transaction. Chevron NYSE CVX was down 2.

oil industry announced this month. Earlier in October, ExxonMobil announced a deal to buy Pioneer Natural Resources in an all-stock transaction valued at $59.5 billion. The implied total enterprise value of the transaction, including net debt, is around $64.5 billion. The muted reaction from the market to the Chevron-Hess deal was probably due to the fact that this is an all-stock transaction, too, analysts say. Crude oil prices were also down early on Monday, further weighing on the oil stocks.

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Chevron To Buy Hess In $53 Billion Deal As Merger Mania AcceleratesIn another major merger, Chevron has agreed to buy Hess Corporation in an all-stock transaction valued at $53 billion.
Source: OilandEnergy - 🏆 34. / 68 Read more »

Why Solar Stocks Are Plunging Right NowShares of Israel-based solar inverter manufacturer, SolarEdge Technologies Inc. have cratered more than 30% in Friday's intraday session, leading to a selloff across the board in solar stocks
Source: OilandEnergy - 🏆 34. / 68 Read more »