Hess (HES) shareholders have officially voted to sell the company to Chevron (CVX) in a deal valued at $53 billion. However, the path to finalizing this transaction still presents several hurdles. Tortoise Portfolio Manager Robert Thummel joins the Morning Brief to share insights into the remaining challenges.

Thummel highlights that arbitration is "the biggest hurdle" for the Chevron-Hess deal. He notes that if the arbitrator rules that other energy giants like Exxon (XOM) "are entitled to a right of first refusal," the deal could potentially fall through. However, he emphasizes that the "crown jewel asset" for this transaction to occur is the Guyana asset.

Thummel further elaborates that if Chevron were unable to acquire Hess alongside its coveted Guyana assets, the entire deal could be jeopardized. He states that Chevron "has made it very, very clear that without the Guyana asset ... the company is not interested in pursuing the acquisition and the merger with Hess."

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This post was written by Angel Smith