Chevron and Exxon Extend Olive Branch After High-Stakes Arbitration Dispute

Chevron CEO Mike Wirth is extending an olive branch to Exxon CEO Darren Woods after a 16-month arbitration dispute. Chevron won the case, allowing the $53 billion takeover of Hess Corp. to proceed, securing a 30% stake in Guyanese crude discoveries. Exxon has accepted Wirth's peace offering, pledging to welcome Chevron to the venture. The two oil giants must now mend any lingering rifts and forge a new partnership.

Chevron CEO Mike Wirth has extended an olive branch to Exxon Mobil CEO Darren Woods following a 16-month arbitration dispute. The dispute centered on Chevron's acquisition of Hess Corp., which included a 30% stake in Guyana's lucrative Stabroek Block [1]. Chevron's victory in the arbitration allowed the $53 billion takeover to proceed, securing Chevron's stake in the block.

In a move towards reconciliation, Chevron has offered to join Exxon and China's CNOOC in the Stabroek Block venture. Exxon, which had previously disagreed with the arbitration court's decision, has accepted Chevron's peace offering. The two oil giants must now mend any lingering rifts and forge a new partnership.

"This merger of two great American companies brings together the best in the industry," said Chevron Chairman and CEO Mike Wirth [3]. Exxon's CEO Darren Woods also expressed a willingness to work with Chevron, stating, "This was never a Chevron thing. This was more about getting the contracts enforced the way they were intended" [2].

The acquisition of Hess Corp. is expected to drive significant free cash flow and production growth into the 2030s, according to Chevron's CFO Eimear Bonner [2]. The combined company's capital spending budget is expected to be between $19 and $22 billion, with Chevron targeting a double-digit Return on Capital Employed at mid-cycle prices [3].

The Federal Trade Commission lifted an earlier restriction, clearing the way for former Hess CEO John Hess to join Chevron’s Board of Directors, subject to Board approval [3]. Chevron expects the acquisition to be accretive to cash flow per share in 2025 after achieving synergies and starting up the fourth floating production storage and offloading vessel in Guyana [3].

Chevron's next earnings report is scheduled for August 1, with analysts maintaining positive profitability forecasts for the year. The company will provide updated long-term financial and operational information at its Investor Day in New York City on November 12 [3].

References:
[1] https://www.reuters.com/business/energy/chevron-closes-hess-acquisition-after-winning-exxon-legal-battle-2025-07-18/
[2] https://seekingalpha.com/news/4468869-chevron-closes-hess-takeover-after-winning-exxon-arbitration
[3] https://www.investing.com/news/company-news/chevron-completes-acquisition-of-hess-creating-integrated-oil-giant-93CH-4141769