Chevron's Slump Trims $6.5B from Hess Shareholders' Deal

Chevron's post-earnings selloff caused a $6.5 billion reduction in the value of its all-stock offer for Hess Corp. The slump in Chevron's stock price was due to a significant profit miss, primarily driven by weak overseas refining results. As a result, the deal premium for Hess investors decreased from 10% to 3.1%. However, the deal is not at risk, and once finalized, Hess investors will have a liquid stock supported by a strong buy-back program.