Exxon Mobil Corporation ( XOM ) shares are trading lower on Tuesday. An arbitration panel deciding the high-profile dispute between Exxon Mobil ( XOM ) and Chevron Corporation ( CVX ) will reportedly examine the hidden value of Hess Corporation’s oil assets in Guyana.

Chevron ( CVX ) and Hess maintain that the valuation of the Guyana asset shouldn’t affect the arbitration, arguing that the transaction doesn’t constitute a change in control, reported Reuters.

The dispute centers on whether the deal triggers Exxon’s right of first refusal. The report noted Chevron’s CEO Michael Wirth has ruled out a compromise with Exxon and CNOOC, while Exxon’s CEO Darren Woods is considering a counterbid for all or part of Hess Guyana’s stake if the arbitration supports their claim.

Read: Hess Shareholders Approve $53 Billion Merger With Chevron

“Exxon and CNOOC continue to ignore the plain language of the operating agreement, and Chevron ( CVX ) and Hess remain confident that the arbitration will confirm that the Stabroek ROFR (right of first refusal) does not apply to the merger,” the companies said in response to Reuters questions.

As per the report, analysts suggest Chevron ( CVX ) may need to adjust its offer or settle to resolve the dispute, especially if the valuation is higher than anticipated.

This month, Exxon Mobil ( XOM ) and CNOOC filed arbitration claims asserting their right of first refusal on the sale of Hess’ stake in a Guyana oil joint venture, which could obstruct Chevron’s $53 billion acquisition of Hess. The arbitration panel’s decision is now anticipated in the second half of 2025.

Investors can gain exposure to the XOM via Energy Select Sector SPDR Fund and IShares U.S. Energy ETF ( IYE ) .

Price Action: XOM shares are down 2.89% at $115.10 at the last check Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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