Mike Wirth, CEO of Chevron and John Hess, CEO of Hess, appear on CNBC to speak about Chevron’s deal to buy Hess Corp for $53 billion all-stock deal, on the floor of the New York Stock Exchange (NYSE) in New York City, October 23, 2023.
Brendan McDermid | Reuters
Hess Corp. is reviewing the timeline for when its merger with Chevron will close after Exxon Mobil this week escalated a dispute over lucrative oil assets in Guyana.
Exxon filed for arbitration Wednesday to defend what the oil major views as its right to make a counter offer for Hess’ Guyana assets under a joint operating agreement.
“We disagree with ExxonMobil’s interpretation of the agreement and are confident that our position will prevail in arbitration,” Hess told employees in an email Wednesday.
“In light of today’s development, we are reviewing the expected timeline for legal closing and will provide further detail in our next merger update,” Hess wrote.
Chevron entered an agreement in October to purchase Hess for $53 billion, in a play to gain a foothold in Guyana’s massive offshore oil resources. The deal was originally slated to close in the first half of 2024, but the timeline has since been delayed until the middle of the year as the Federal Trade Commission scrutinizes the deal.
Chevron has said arbitration over Hess’ Guyana assets could delay the closing timeline until October 2025, according to a filing with the Securities and Exchange Commission.
Hess is part of a consortium with Exxon and China National Offshore Oil Corporation that operates the Stabroek oil block, a massive offshore resource with an estimated 11 billion barrels of oil and gas.
Hess has a 30% stake in the Stabroek block. Exxon leads the project with a 45% stake while CNOOC maintains 25% stake.
Chevron warned investors in a filing last week that the deal with Hess would terminate if an arbitration court rules that Exxon has a right of first refusal. If that scenario played out, Hess would continue to operate as an independent company and retain its stake in the Guyana assets, according to Chevron’s filing.
Chevron has maintained that the joint operating agreement does not apply to its merger with Hess.
Exxon Senior Vice President Neil Chapman said Wednesday that the oil major is “extremely confident in our position that pre-emption rights exist in this contract.” Arbitration disputes can take up to six months to resolve, Chapman said.
Chapman indicated that Exxon could make a bid for Hess’ stake in the Stabroek block.
“We believe there is opportunity value here, there is option value here,” Chapman said during an interview at a Morgan Stanley event. “If that transaction does not proceed, there is potential value down the road for Exxon Mobil — that option value is really, really important.”
“It would be incomprehensible for us to say ‘well we’re not going to look at that value, we’re just going to let the transaction proceed,'” Chapman said. “You have a responsibility to shareholders.”
Hess said in the Wednesday email that “there is no possible scenario in which Exxon or CNOOC could acquire Hess’ interest in Guyana as a result of the Chevron-Hess transaction.”
LiveWire, the electric motorcycle brand spun out of Harley-Davidson, has just announced its latest electric motorcycle model. The new LiveWire S2 Alpanista is built on the same platform as the brand’s last two models, leveraging the Arrow platform as a versatile foundation for several diverse bikes.
The Arrow platform first received its debut with the LiveWire S2 Del Mar, which was then followed by the S2 Mulholland.
LiveWire announced that a high-performance electric maxi-scooter would be produced on the Arrow platform, but not before the company rolled out the S2 Alpinista. “The Alpinista is LiveWire’s first sport standard,” explained the company, “equipped with 17” wheels and tires, blending the best of street, sport, and hyper-tourer characteristics.”
The recently unveiled S2 Alpinista is mechanically quite similar to the two previous models sharing the platform. The 10.5 kWh battery that serves as the main structure of the bike will offer a maximum range of 120 miles (193 km) per charge under city riding conditions. It can be recharged with a Level 2 charger from 20-80% in just 1 hour and 20 minutes.
The 433 lb (196 kg) bike can achieve a 0-60 mph (0-96 km/h) time of just 3.0 seconds, thanks to its powerful 63 kW (84 hp) motor. The S2 Alpinista can also reach an electronically limited top speed of 99 mph (159 km/h).
Priced at US $15,999 and already available at LiveWire dealerships in North America and Europe, the S2 Alpinista officially becomes the most affordable LiveWire electric motorcycle available to date, undercutting the $16,249 S2 Del Mar electric street tracker and the $16,499 Mulholland electric sport cruiser.
“Alpinista reimagines the S2 by combining the urban agility of a supermoto with the do-it-all nature of a touring bike, creating a practical and thrilling sport standard,” explained the brand.
The smaller 17″ wheels help reduce the seat height of the bike, and combined with the Dunlop Roadsmart IV tires, the street-optimized bike is ideal for “both daily commutes and spirited rides through winding roads.”
The S2 Alpinista comes with 6-axis IMU from Bosch providing cornering-enhanced antilock braking and cornering-enhanced traction control systems, in addition to four preset ride modes and two custom modes.
Now the third model launched on the Arrow platform, the S2 Alpanista underscores the versatility of LiveWire’s workhorse. The approach was intended to allow the e-motorcycle offshoot to quickly innovate with multiple styles of motorcycles all sharing key structural and drivetrain components. The move has largely been seen as an engineering success, with three models hitting the road in under three years. However, sales have yet to reach targets set by LiveWire as the more premium electric motorcycle industry has experienced a rocky few years.
As a LiveWire S2 Del Mar owner myself, I can attest to both the performance and enjoyable experience of bikes built on the platform, though I do find myself in a somewhat smaller community than LiveWire had likely hoped for. With the backing of its powerful older brother H-D, which retains a controlling stake in the company, LiveWire has enjoyed the relative freedom to cruise for its first few years and focus on motorcycle development and rollouts, with profitability hopefully coming over the horizon in due time.
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British oil and gasoline company BP (British Petroleum) signage is being pictured in Warsaw, Poland, on July 29, 2024.
Nurphoto | Nurphoto | Getty Images
British oil major BP on Thursday said it is planning to cut thousands of jobs as part of a major cost-reduction exercise.
“Today, we have today told staff across bp that the proposed changes that have been announced to date are expected to impact around 4700 bp roles – these account for much of the anticipated reduction this year,” BP said in a statement.
“We are also reducing our contractor numbers by 3000,” the company said.
The measures, which were designed to lower costs, come after BP CEO Murray Auchincloss said last year that the company intends to deliver at least $2 billion of cash savings by the end of 2026.
BP’s workforce currently stands at around 87,800.
Shares of the company traded 1.4% higher on Thursday morning.
Strategy in focus
BP has underperformed its European rivals of late as energy market participants continue to question the firm’s investment case.
In a trading update published Tuesday, BP said weaker refinery margins and turnaround activity will deliver a $100 million to $300 million blow to its fourth-quarter profit, while further declines are expected in oil production.
The energy firm is scheduled to report quarterly and full-year earnings on Feb. 11.
BP said in the same update that it had postponed an event for investors next month so that its chief executive can fully recuperate from a “planned medical procedure.” Auchincloss was said to be “recovering well” from the procedure, which had not been previously disclosed.
The capital markets event, which had previously been scheduled to take place in New York on Feb. 11, will now take place in London on Feb. 26.
— CNBC’s Ruxandra Iordache contributed to this report.
On today’s episode of Quick Charge we explore the uncertainty around the future of EV incentives, the roles different stakeholders will play in shaping that future, and our friend Stacy Noblet from energy consulting firm ICF stops by to share her take on what lies ahead.
We’ve got a couple of different articles and studies referenced in this forward-looking interview, and I’ve done my best to link to all of them below. If I missed one, let me know in the comments.
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