Energy: Shareholders approve Hess sale, Conoco to buy Marathon

In the energy sector, significant deals are progressing, with Hess shareholders approving a $53 billion sale to Chevron, and ConocoPhillips set to acquire Marathon Oil in a $17.1 billion all-stock transaction. These deals are part of a broader trend of consolidation aimed at optimizing operations and reducing costs. Regulatory approvals are still pending, with particular attention on an arbitration related to Hess’s assets in Guyana, which are a key factor in Chevron's acquisition interests.

Yes, there are some challenges and concerns regarding the completion of both the Hess-Chevron and ConocoPhillips-Marathon Oil deals.

For the Hess-Chevron deal, there are a few potential obstacles:

1. FTC Regulatory Approval: The acquisition still needs to receive approval from the Federal Trade Commission (FTC). Chevron is expecting this process to conclude in the coming weeks, but there is always a possibility of delays or complications.

2. Exxon Mobil's Preemption Rights: Exxon Mobil has taken Chevron and Hess into arbitration, claiming that they have the right of first refusal to Hess' stake in Guyana2. This stake is a major reason for Chevron's interest in acquiring Hess. The outcome of the arbitration could potentially impact the deal.

For the ConocoPhillips-Marathon Oil deal, the main concerns revolve around:

1. Optimization and Cost Lowering: Analysts suggest that this deal seems to be more about optimization and cost-lowering, rather than inventory and growth. This could potentially affect the long-term benefits of the merger.

2. Antitrust Issues: While it is unlikely, there is always a possibility of antitrust concerns arising3. However, since both companies are considered independent oil companies without downstream assets, the chances of antitrust issues are relatively low.

Despite these challenges and concerns, both deals have been approved by shareholders and are moving forward. The companies involved are confident in the benefits of the acquisitions and are working to address any potential obstacles.