Title: Chevron’s Post-Earnings Slump Impacts All-Stock Offer for Hess by $6.5 Billion

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– Chevron’s post-earnings selloff has significantly impacted the value of its all-stock offer for Hess. The offer has decreased by approximately $6.5 billion, affecting the returns that investors can expect from the exchange of their Hess stocks.

Chevron’s stock experienced a slump of up to 5.9% on Friday. This slump was primarily due to a profit miss of 66 cents per share, mainly attributed to weak overseas refining results. The unexpected decline in profits has had a direct impact on the overall value of Chevron’s offer for Hess.

Following the announcement of the agreement on October 23, the deal premium for Hess investors has witnessed a decline from 10% to 3.1%. While this reduction may seem significant, market experts suggest that the deal is not at risk of falling apart.

According to Bloomberg Intelligence analyst Vincent Piazza, once the deal is finalized, Hess investors will benefit from having a liquid stock supported by a robust buy-back program. Piazza’s analysis indicates that the overall value of the deal, and subsequently the returns for Hess investors, will still be substantial despite the decrease.

Chevron’s overseas refineries failed to perform as expected, resulting in lower net income than analysts had predicted. Additionally, Chevron’s crude-production business in the Permian Basin experienced setbacks, and costs at the Tengiz project in Kazakhstan increased by approximately 4%.

As a result of Chevron’s stock slump, Hess’s stock also declined by 5% to $141.51 in tandem. Investors in both companies are closely monitoring the situation to assess the long-term effects of the deal on their investment portfolios.

It is worth noting that Simon Casey played a crucial role in reporting the information provided in this article. His insights and analysis have supported the understanding of the impact of Chevron’s post-earnings slump on its all-stock offer for Hess.

In conclusion, Chevron’s recent post-earnings selloff has significantly affected the value of its all-stock offer for Hess, reducing it by about $6.5 billion. While the deal premium for Hess investors has also decreased since the announcement, market experts believe that the overall deal remains intact and will provide Hess investors with a strong and stable stock supported by a robust buy-back program.