Market Cap
US$10.4b
Last Updated
2020/03/30 03:08 UTC
Data Sources
Company Financials +
Executive Summary
Hess Corporation, an exploration and production company, explores, develops, produces, purchases, transports, and sells crude oil, natural gas liquids (NGLs), and natural gas.
Rewards
Risk Analysis
Dividend of 2.94% is not well covered by earnings or forecast to be in the next 3 years
Snowflake Analysis
Mediocre balance sheet with moderate growth potential.
Similar Companies
Share Price & News
How has Hess's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: HES's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
17.7%
HES
17.5%
US Oil and Gas
12.5%
US Market
1 Year Return
-44.1%
HES
-57.2%
US Oil and Gas
-12.7%
US Market
Return vs Industry: HES exceeded the US Oil and Gas industry which returned -57.2% over the past year.
Return vs Market: HES underperformed the US Market which returned -12.7% over the past year.
Shareholder returns
| HES | Industry | Market | |
|---|---|---|---|
| 7 Day | 17.7% | 17.5% | 12.5% |
| 30 Day | -39.4% | -36.4% | -14.7% |
| 90 Day | -49.1% | -52.2% | -21.5% |
| 1 Year | -42.9%-44.1% | -55.5%-57.2% | -10.9%-12.7% |
| 3 Year | -23.1%-27.5% | -52.3%-56.9% | 12.6%5.4% |
| 5 Year | -48.3%-53.1% | -55.6%-62.5% | 31.9%17.5% |
Price Volatility Vs. Market
How volatile is Hess's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
This Insider Has Just Sold Shares In Hess Corporation (NYSE:HES)3 weeks ago | Simply Wall St
Hess (NYSE:HES) Has A Somewhat Strained Balance Sheet1 month ago | Simply Wall St
Some Hess (NYSE:HES) Shareholders Are Down 20%Valuation
Is Hess undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: HES ($34.03) is trading below our estimate of fair value ($84.73)
Significantly Below Fair Value: HES is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: HES is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.
PE vs Market: HES is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate HES's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: HES is overvalued based on its PB Ratio (1.2x) compared to the US Oil and Gas industry average (0.5x).
Next Steps
Future Growth
How is Hess forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
48.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HES is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).
Earnings vs Market: HES is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: HES's is expected to become profitable in the next 3 years.
Revenue vs Market: HES's revenue (2.9% per year) is forecast to grow slower than the US market (7.3% per year).
High Growth Revenue: HES's revenue (2.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: HES's Return on Equity is forecast to be low in 3 years time (0.4%).
Next Steps
Past Performance
How has Hess performed over the past 5 years?
-0.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HES is currently unprofitable.
Growing Profit Margin: HES is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: HES is unprofitable, and losses have increased over the past 5 years at a rate of -0.7% per year.
Accelerating Growth: Unable to compare HES's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: HES is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-11.4%).
Return on Equity
High ROE: HES has a negative Return on Equity (-2.47%), as it is currently unprofitable.
Next Steps
Financial Health
How is Hess's financial position?
Financial Position Analysis
Short Term Liabilities: HES's short term assets ($3.2B) exceed its short term liabilities ($2.5B).
Long Term Liabilities: HES's short term assets ($3.2B) do not cover its long term liabilities ($9.6B).
Debt to Equity History and Analysis
Debt Level: HES's debt to equity ratio (73.6%) is considered high.
Reducing Debt: HES's debt to equity ratio has increased from 26.2% to 73.6% over the past 5 years.
Balance Sheet
Inventory Level: HES has a high level of physical assets or inventory.
Debt Coverage by Assets: HES's debt is not covered by short term assets (assets are 0.4x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: HES has sufficient cash runway for more than a year based on its current free cash flow.
Forecast Cash Runway: HES has sufficient cash runway for 2.6 years if free cash flow continues to grow at historical rates of 8% each year.
Next Steps
Dividend
What is Hess's current dividend yield, its reliability and sustainability?
2.94%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: HES's dividend (2.94%) is higher than the bottom 25% of dividend payers in the US market (1.98%).
High Dividend: HES's dividend (2.94%) is low compared to the top 25% of dividend payers in the US market (5.49%).
Stability and Growth of Payments
Stable Dividend: HES's dividends per share have been stable in the past 10 years.
Growing Dividend: HES's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: HES is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: HES's dividends in 3 years are not forecast to be well covered by earnings (363.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.8yrs
Average management tenure
CEO
John Hess (65yo)
24.83s
Tenure
US$12,572,440
Compensation
Mr. John B. Hess has been the Chief Executive Officer at Hess Corporation since May 3, 1995. Mr. Hess has been the Chairman of the Board of Directors and Chief Executive Officer of Hess Midstream GP LLC, t ...
CEO Compensation Analysis
Compensation vs Market: John's total compensation ($USD12.57M) is about average for companies of similar size in the US market ($USD11.74M).
Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 24.83yrs | US$12.57m | 8.82% $915.6m | |
| President & COO | no data | US$8.72m | 0.042% $4.4m | |
| Senior VP & CFO | 15.92yrs | US$3.98m | 0.082% $8.6m | |
| Senior VP | 1.17yrs | US$4.13m | 0.045% $4.7m | |
| Senior Vice President | 10.75yrs | US$3.15m | 0.025% $2.6m | |
| Senior Vice President of Technology & Services | 2.17yrs | no data | 0.013% $1.3m | |
| Vice President of Investor Relations | 16.67yrs | no data | no data | |
| VP of Communications | 2.58yrs | no data | no data | |
| Senior VP of Human Resources & Office Management | 3.83yrs | no data | 0.014% $1.4m | |
| VP, CFO of Midstream & Chief Risk Officer | 3.17yrs | no data | no data |
3.8yrs
Average Tenure
61yo
Average Age
Experienced Management: HES's management team is considered experienced (3.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 24.83yrs | US$12.57m | 8.82% $915.6m | |
| Independent Director | 6.83yrs | US$339.79k | 0.019% $1.9m | |
| Independent Director | 27.17yrs | US$305.15k | 0.019% $1.9m | |
| Independent Director | 15.75yrs | US$305.15k | 0.015% $1.5m | |
| Independent Director | 3.5yrs | US$300.66k | 0.0048% $500.6k | |
| Independent Director | 6.83yrs | US$342.96k | 0.0099% $1.0m | |
| Independent Director | 6.83yrs | US$300.15k | 0.011% $1.1m | |
| Independent Director | 5.83yrs | US$305.15k | 0.0070% $722.9k | |
| Independent Director | 6.83yrs | US$316.17k | 0.0084% $874.5k | |
| Independent Chairman | 4yrs | US$507.96k | 0.0081% $839.2k |
6.8yrs
Average Tenure
66.5yo
Average Age
Experienced Board: HES's board of directors are considered experienced (6.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: HES insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Hess Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Hess Corporation
- Ticker: HES
- Exchange: NYSE
- Founded: 1920
- Industry: Oil and Gas Exploration and Production
- Sector: Energy
- Market Cap: US$10.386b
- Shares outstanding: 305.21m
- Website: https://www.hess.com
Number of Employees
Location
- Hess Corporation
- 1185 Avenue of the Americas
- 40th Floor
- New York
- New York
- 10036
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| HES | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Mar 1964 |
| AHC | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Mar 1964 |
| AHC | XTRA (XETRA Trading Platform) | Yes | Common Stock | DE | EUR | Mar 1964 |
| 0J50 | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Mar 1964 |
| AHC | BRSE (Berne Stock Exchange) | Yes | Common Stock | CH | CHF | Mar 1964 |
| AHC | ETLX (Eurotlx) | Yes | Common Stock | IT | EUR | Mar 1964 |
| H1ES34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 2 REPR 1 SHS UNSPON | BR | BRL | Jan 2020 |
Biography
Hess Corporation, an exploration and production company, explores, develops, produces, purchases, transports, and sells crude oil, natural gas liquids (NGLs), and natural gas. It operates through two segments, Exploration and Production, and Midstream. The company conducts production operations primarily in the United States, Denmark, the Malaysia/Thailand Joint Development Area, and Malaysia; and exploration activities primarily offshore Guyana, Suriname, Canada, and in the Gulf of Mexico. As of December 31, 2019, it had total proved reserves of 1,197 million barrels of oil equivalent. The company is also involved in the gathering, compressing, and processing of natural gas; fractionating NGLs; terminaling, loading, and transporting crude oil and NGLs through rail car; storing and terminaling propane, as well as providing water handling services primarily in the Bakken Shale plays in the Williston Basin area of North Dakota. The company was founded in 1920 and is headquartered in New York, New York.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/30 03:08 |
| End of Day Share Price | 2020/03/27 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.