Chevron Is Taking a $3 Billion to $4 Billion Loss on Hess Midstream. Should You Buy the Stock Anyway?

Impact · against what's priced in

The news is neutral for Chevron as the Hess integration synergies are already a pillar of its current valuation and the write-off is too immaterial to disrupt its balance sheet. The deal is fundamentally a transfer of value to Hess Midstream, though the scale of the benefit is relatively small compared to Chevron's $440B market cap.

CVX+0.00

Already priced in

The price assumes

The Hess acquisition delivering $1.5B in annual cost synergies