Insights: Exxon, Chevron, arbitration, U.S. debt latest
Exxon closes Pioneer takeover, Waits decision on Guyana oil play ?
After getting the nod from U.S. regulators, ExxonMobil is expected to more than double its Permian footprint with the completion of its US$60 billion acquisition of Pioneer Natural Resources.
Its Permian production volume will more than double to 1.3 million barrels of oil equivalent per day (boe/d), based on 2023 volumes, and is expected to increase to approximately 2 million boe/d in 2027, based on initial estimates.?
However, this isn't the only move that could potentially change Exxon's portfolio.
Blocks Chevron offshore expansion
Exxon is claiming it has right of first refusal (ROFR) over the sale of Hess’ Guyana assets in a filing with the International Chamber of Commerce.
This puts a wrench in Chevron's plans to close the US$60 billion Hess deal, which includes a 30% stake in the Stabroek oil block in offshore Guyana.
Hess had expected the Chevron acquisition to close in the second half of 2024 but the arbitration case may cause the transaction to be delayed.
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Energy writer Tom Young offers insights about possible arbitration outcomes here.
?? U.S. debt soars amid growth, shareholder priorities
Large U.S. oil and gas companies have seen a $25 billion increase in their debt load over the past year, driven by efforts to sustain growth and reward shareholders.
In 2023, spending averaged $55-60 billion per quarter on capex, M&A, dividends and share buybacks for 43 U.S.-based operators. These are similar averages to late 2022 and substantially higher than 2021, based on analysis by Evaluate Energy.
By the end of 2023, this group of 43 producers had incurred $11.5 billion in new debt and reduced cash reserves by $13.3 billion – for a year-end net debt position of around $134 billion. Read the full story here.
?? Next month: We examine changing geopolitical dimensions related to LNG - globally and within North America.
Evaluate Energy Insights is a must-read for anyone looking to stay on top of the latest data-based trends and developments.
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New Energies Scholar
10 个月Chevron would have done due diligence on the Hess assets and would be well aware of the Exxon's ROFR in the Guyana assets. It's standard practice in any operating agreement.