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Hess

NYSE:HES
Snowflake Description

Reasonable growth potential average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HES
NYSE
$18B
Market Cap
  1. Home
  2. US
  3. Energy
Company description

Hess Corporation, an exploration and production company, explores for, develops, produces, purchases, transports, and sells crude oil, natural gas liquids (NGLs), and natural gas. The last earnings update was 24 days ago. More info.


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HES Share Price and Events
7 Day Returns
-9.5%
NYSE:HES
-4.5%
US Oil and Gas
-2.1%
US Market
1 Year Returns
0.5%
NYSE:HES
-17.9%
US Oil and Gas
1.3%
US Market
HES Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Hess (HES) -9.5% -7.3% 4% 0.5% -1.3% -34.9%
US Oil and Gas -4.5% -10.2% -6.2% -17.9% -6.1% -36.3%
US Market -2.1% -4.2% 0% 1.3% 33.5% 38%
1 Year Return vs Industry and Market
  • HES outperformed the Oil and Gas industry which returned -17.9% over the past year.
Price Volatility
HES
Industry
5yr Volatility vs Market

Value

 Is Hess undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Hess to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Hess.

NYSE:HES Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 14 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.4%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:HES
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.89
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.889 (1 + (1- 21%) (42.4%))
1.125
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.13
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.125 * 5.96%)
9.44%

Discounted Cash Flow Calculation for NYSE:HES using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Hess is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:HES DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.44%)
2019 -763.56 Analyst x9 -697.71
2020 -455.81 Analyst x7 -380.59
2021 190.95 Analyst x2 145.69
2022 514.45 Analyst x2 358.66
2023 393.95 Analyst x2 250.96
2024 323.97 Est @ -17.76% 188.58
2025 286.33 Est @ -11.62% 152.30
2026 265.40 Est @ -7.31% 128.99
2027 253.99 Est @ -4.3% 112.80
2028 248.42 Est @ -2.19% 100.82
Present value of next 10 years cash flows $360.50
NYSE:HES DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $248.42 × (1 + 2.73%) ÷ (9.44% – 2.73%)
$3,804.71
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $3,804.71 ÷ (1 + 9.44%)10
$1,544.04
NYSE:HES Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $360.50 + $1,544.04
$1,904.54
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,904.54 / 303.44
$6.28
NYSE:HES Discount to Share Price
Calculation Result
Value per share (USD) From above. $6.28
Current discount Discount to share price of $59.47
= -1 x ($59.47 - $6.28) / $6.28
-847.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Hess is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Hess's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Hess's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:HES PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $-0.62
NYSE:HES Share Price ** NYSE (2019-05-24) in USD $59.47
United States of America Oil and Gas Industry PE Ratio Median Figure of 101 Publicly-Listed Oil and Gas Companies 12.79x
United States of America Market PE Ratio Median Figure of 3,082 Publicly-Listed Companies 17.36x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Hess.

NYSE:HES PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:HES Share Price ÷ EPS (both in USD)

= 59.47 ÷ -0.62

-95.92x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hess is loss making, we can't compare its value to the US Oil and Gas industry average.
  • Hess is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Hess's expected growth come at a high price?
Raw Data
NYSE:HES PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -95.92x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts
49.5%per year
United States of America Oil and Gas Industry PEG Ratio Median Figure of 76 Publicly-Listed Oil and Gas Companies 0.47x
United States of America Market PEG Ratio Median Figure of 2,120 Publicly-Listed Companies 1.5x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Hess, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Hess's assets?
Raw Data
NYSE:HES PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $30.70
NYSE:HES Share Price * NYSE (2019-05-24) in USD $59.47
United States of America Oil and Gas Industry PB Ratio Median Figure of 195 Publicly-Listed Oil and Gas Companies 1.13x
United States of America Market PB Ratio Median Figure of 5,207 Publicly-Listed Companies 1.8x
NYSE:HES PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:HES Share Price ÷ Book Value per Share (both in USD)

= 59.47 ÷ 30.70

1.94x

* Primary Listing of Hess.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hess is overvalued based on assets compared to the US Oil and Gas industry average.
X
Value checks
We assess Hess's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. Hess has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Hess expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
49.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Hess expected to grow at an attractive rate?
  • Hess's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Hess's earnings growth is expected to exceed the United States of America market average.
  • Hess's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:HES Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:HES Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts 49.5%
NYSE:HES Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 14 Analysts 8.2%
United States of America Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average 12.2%
United States of America Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 4.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.7%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:HES Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:HES Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 9,708 5,655 1,772 3
2022-12-31 8,235 4,399 1,346 3
2021-12-31 7,753 3,267 616 6
2020-12-31 7,891 3,174 615 10
2019-12-31 6,631 2,274 105 10
NYSE:HES Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 6,378 1,967 -183
2018-12-31 6,152 1,939 -328
2018-09-30 6,177 1,401 -3,001
2018-06-30 5,752 1,066 -3,583
2018-03-31 5,427 806 -3,901
2017-12-31 5,347 945 -4,120
2017-09-30 5,076 928 -6,334
2017-06-30 4,905 1,172 -6,050
2017-03-31 4,934 1,204 -5,994
2016-12-31 4,661 795 -6,173
2016-09-30 4,738 1,092 -3,083
2016-06-30 5,230 1,042 -2,998

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Hess's earnings are expected to grow significantly at over 20% yearly.
  • Hess's revenue is expected to grow by 8.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:HES Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below

All data from Hess Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:HES Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 5.03 5.82 4.23 2.00
2022-12-31 3.67 3.67 3.67 1.00
2021-12-31 1.83 5.11 0.47 6.00
2020-12-31 2.02 5.29 -0.05 13.00
2019-12-31 0.37 1.85 -0.61 11.00
NYSE:HES Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 -0.62
2018-12-31 -1.10
2018-09-30 -9.88
2018-06-30 -11.60
2018-03-31 -12.46
2017-12-31 -13.12
2017-09-30 -20.17
2017-06-30 -19.28
2017-03-31 -19.12
2016-12-31 -19.92
2016-09-30 -10.20
2016-06-30 -10.17

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Hess is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Hess's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Hess has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Hess performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Hess's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Hess does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Hess's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Hess's 1-year growth to the US Oil and Gas industry average as it is not currently profitable.
Earnings and Revenue History
Hess's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Hess Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:HES Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 6,378.00 -183.00 1,907.00
2018-12-31 6,152.00 -328.00 1,918.00
2018-09-30 6,177.00 -3,001.00 1,921.00
2018-06-30 5,752.00 -3,583.00 1,906.00
2018-03-31 5,427.00 -3,901.00 1,936.00
2017-12-31 5,347.00 -4,120.00 2,049.00
2017-09-30 5,076.00 -6,334.00 2,295.00
2017-06-30 4,905.00 -6,050.00 2,393.00
2017-03-31 4,934.00 -5,994.00 2,542.00
2016-12-31 4,661.00 -6,173.00 2,690.00
2016-09-30 4,738.00 -3,083.00 2,644.00
2016-06-30 5,230.00 -2,998.00 2,856.00
2016-03-31 5,942.00 -3,147.00 2,893.00
2015-12-31 6,490.00 -3,008.00 2,929.00
2015-09-30 7,543.00 -1,201.00 2,880.00
2015-06-30 8,510.00 -598.00 2,973.00
2015-03-31 9,353.00 930.00 3,018.00
2014-12-31 10,462.00 1,635.00 3,020.00
2014-09-30 10,558.00 2,569.00 3,173.00
2014-06-30 10,585.00 2,590.00 3,003.00
2014-03-31 10,806.00 3,030.00 3,115.00
2013-12-31 11,533.00 3,866.00 3,436.00
2013-09-30 23,444.00 3,214.00 3,162.00
2013-06-30 23,736.00 3,331.00 3,344.00
2013-03-31 23,961.00 2,470.00 3,320.00
2012-12-31 11,695.00 1,770.00 3,539.00
2012-09-30 18,616.00 1,422.00 2,920.00
2012-06-30 24,353.00 1,245.00 2,383.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Hess has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Hess used its assets less efficiently than the US Oil and Gas industry average last year based on Return on Assets.
  • It is difficult to establish if Hess improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Hess's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Hess has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Hess's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Hess's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Hess is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Hess's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Hess's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Hess Company Filings, last reported 1 month ago.

NYSE:HES Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 10,553.00 7,651.00 2,300.00
2018-12-31 10,888.00 6,674.00 2,694.00
2018-09-30 11,046.00 6,699.00 3,004.00
2018-06-30 11,336.00 6,444.00 2,908.00
2018-03-31 11,937.00 6,572.00 3,726.00
2017-12-31 12,354.00 6,977.00 4,847.00
2017-09-30 14,428.00 6,714.00 2,526.00
2017-06-30 15,078.00 6,733.00 2,493.00
2017-03-31 15,233.00 6,785.00 2,686.00
2016-12-31 15,591.00 6,806.00 2,732.00
2016-09-30 20,915.00 7,337.00 3,532.00
2016-06-30 21,174.00 6,552.00 3,115.00
2016-03-31 21,634.00 6,592.00 3,572.00
2015-12-31 20,401.00 6,592.00 2,716.00
2015-09-30 22,363.00 6,552.00 3,013.00
2015-06-30 21,103.00 5,957.00 931.00
2015-03-31 21,667.00 5,980.00 1,506.00
2014-12-31 22,320.00 5,987.00 2,444.00
2014-09-30 24,365.00 5,996.00 4,120.00
2014-06-30 24,354.00 6,077.00 2,205.00
2014-03-31 24,242.00 5,576.00 1,288.00
2013-12-31 24,784.00 5,798.00 1,814.00
2013-09-30 23,842.00 6,209.00 321.00
2013-06-30 23,973.00 5,898.00 725.00
2013-03-31 22,525.00 7,376.00 444.00
2012-12-31 21,203.00 8,111.00 642.00
2012-09-30 20,652.00 7,841.00 528.00
2012-06-30 19,959.00 7,845.00 409.00
  • Hess's level of debt (72.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (23% vs 72.5% today).
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.

  • Hess has sufficient cash runway for more than 3 years based on current free cash flow.
  • Hess has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -51.2% each year.
X
Financial health checks
We assess Hess's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Hess has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Hess's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.68%
Current annual income from Hess dividends. Estimated to be 1.75% next year.
If you bought $2,000 of Hess shares you are expected to receive $34 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Hess's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.47%).
  • Hess's dividend is below the markets top 25% of dividend payers in United States of America (3.76%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:HES Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
United States of America Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 66 Stocks 3.9%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2008 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:HES Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 1.04 4.00
2020-12-31 1.04 8.00
2019-12-31 1.05 9.00
NYSE:HES Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-03-06 1.000 1.614
2018-12-06 1.000 1.961
2018-09-05 1.000 1.610
2018-06-06 1.000 1.552
2018-03-07 1.000 1.801
2017-12-06 1.000 2.094
2017-09-06 1.000 2.249
2017-06-07 1.000 2.376
2017-03-01 1.000 2.076
2016-12-07 1.000 1.743
2016-09-07 1.000 1.974
2016-06-01 1.000 1.779
2016-03-02 1.000 1.816
2015-12-02 1.000 2.289
2015-09-09 1.000 1.750
2015-06-03 1.000 1.637
2015-03-04 1.000 1.404
2014-12-03 1.000 1.387
2014-09-03 1.000 1.158
2014-06-04 1.000 1.017
2014-03-05 1.000 1.166
2013-12-04 1.000 1.262
2013-03-07 1.000 1.357
2013-03-06 0.400 0.577
2012-12-05 0.400 0.679
2012-09-05 0.400 0.761
2012-06-06 0.400 0.871
2012-03-07 0.400 0.757
2011-12-07 0.400 0.673
2011-09-08 0.400 0.684
2011-06-01 0.400 0.606
2011-03-02 0.400 0.497
2010-12-01 0.400 0.506
2010-09-08 0.400 0.637
2010-06-02 0.400 0.756
2010-03-03 0.400 0.665
2009-12-03 0.400 0.672
2009-09-09 0.400 0.706
2009-06-05 0.400 0.758

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Hess's earnings are paid to the shareholders as a dividend.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.9x coverage).
X
Income/ dividend checks
We assess Hess's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Hess afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Hess has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Hess's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
John Hess
COMPENSATION $12,572,440
AGE 64
TENURE AS CEO 24 years
CEO Bio

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 Partners GP LLC, a general partners of Hess Midstream Partners LP since September 2014 and July 2014 respectively. Mr. Hess serves on the Secretary of Energy Advisory Board Quadrennial Review Task Force. Mr. Hess has been with Hess Corporation for 28 years and has strong background in the global oil and gas industry. He provides significant value to the oversight and development of Kohlberg Kravis Roberts business and served leadership roles at a global energy business. Mr. Hess led the Fortune 100 Company through a strategic transformation from integrated oil company to pure play exploration and production company. Mr. Hess served as the Chairman of Hess Corporation from May 3, 1995 to May 16, 2013. Mr. Hess serves as Vice Chairman of Lincoln Center for the Performing Arts, Inc. and has been its Director since 2007. He serves as a Trustee of Center for Strategic and International Studies, Inc. Mr. Hess has been a Director of Hess Corporation since 1978. He has been a Director of the Trilateral Commission since 2009. Mr. Hess has been a Director and Member of Board of Trustees at Deerfield Academy since 2004. He has been an Independent Director of KKR Management LLC and KKR & Co. Inc. (formerly, KKR & Co. L.P.) since July 28, 2011. He has been a Director of National Advisory Board of J.P. Morgan Chase & Co. since 1991. Mr. Hess has been a Member of Board of Trustees at Wildlife Conservation Society/NY Zoo since 1991, United Cerebral Palsy Research and Educational Foundation. Mr. Hess has been a Trustee of The Mount Sinai Hospital since 1988 and New York Public Library since 2008. He is a member of the Business Council, the Trilateral Commission and the Council on Foreign Relations and he serves on the Executive Committee of the American Petroleum Institute. Mr. Hess has almost 40 years of experience with the company. During his career, Mr. Hess has acquired in-depth knowledge of the company’s strategy and operations and the history of the company’s development, and he and his family have had a long-standing commitment to the company. He is a member of Dean's Advisors of Harvard Business School since 2001. He is also Chair of the Harvard Business School Campaign. He served as a Director of NYC2012, Inc. He served as a Director of The Dow Chemical Company since October 12, 2006 until May 9, 2013. Mr. Hess served as a Member of the Secretary of Energy Advisory Board from 1999 to 2002. He earned an M.B.A. from Harvard Business School in 1977 and a B.A. from Harvard College in 1975.

CEO Compensation
  • John's compensation has been consistent with company performance over the past year, both up more than 20%.
  • John's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Hess management team in years:

7.6
Average Tenure
59
Average Age
  • The average tenure for the Hess management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

John Hess

TITLE
CEO & Director
COMPENSATION
$13M
AGE
64
TENURE
24 yrs

John Rielly

TITLE
Senior VP & CFO
COMPENSATION
$4M
AGE
56
TENURE
15.1 yrs

Greg Hill

TITLE
COO, Executive VP and President of Worldwide Exploration & Production
COMPENSATION
$9M
AGE
57
TENURE
5.3 yrs

Timothy Goodell

TITLE
Senior VP
COMPENSATION
$4M
AGE
61
TENURE
10.3 yrs

Mike Turner

TITLE
Senior Vice President of Global Production
COMPENSATION
$3M
AGE
59
TENURE
9.9 yrs

Richard Lynch

TITLE
Senior Vice President of Technology & Services
AGE
59
TENURE
1.3 yrs

Jay Wilson

TITLE
Vice President of Investor Relations
AGE
72
TENURE
15.8 yrs

Lorrie Hecker

TITLE
Vice President of Communications
TENURE
1.8 yrs

Andrew Slentz

TITLE
Senior Vice President of Human Resources
AGE
56
TENURE
3 yrs

Jonathan Stein

TITLE
VP, CFO of Midstream & Chief Risk Officer
TENURE
2.3 yrs
Board of Directors Tenure

Average tenure and age of the Hess board of directors in years:

6
Average Tenure
65.5
Average Age
  • The tenure for the Hess board of directors is about average.
Board of Directors

Jim Quigley

TITLE
Independent Chairman
COMPENSATION
$508K
AGE
66
TENURE
3.2 yrs

John Hess

TITLE
CEO & Director
COMPENSATION
$13M
AGE
64
TENURE
41.3 yrs

Ede Holiday

TITLE
Independent Director
COMPENSATION
$305K
AGE
66
TENURE
26.3 yrs

Risa Lavizzo-Mourey

TITLE
Independent Director
COMPENSATION
$305K
AGE
63
TENURE
14.9 yrs

Kevin Meyers

TITLE
Independent Director
COMPENSATION
$343K
AGE
64
TENURE
6 yrs

Fred Reynolds

TITLE
Independent Director
COMPENSATION
$336K
AGE
67
TENURE
6 yrs

Bill Schrader

TITLE
Independent Director
COMPENSATION
$316K
AGE
60
TENURE
6 yrs

Rodney Chase

TITLE
Independent Director
COMPENSATION
$340K
AGE
75
TENURE
6 yrs

David McManus

TITLE
Independent Director
COMPENSATION
$300K
AGE
65
TENURE
6 yrs

Terry Checki

TITLE
Independent Director
COMPENSATION
$305K
AGE
72
TENURE
5 yrs
Who owns this company?
Recent Insider Trading
  • Hess insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
08. May 19 Sell Andrew Slentz Individual 06. May 19 06. May 19 -2,081 $62.52 $-130,104
15. Mar 19 Sell Gregory Hill Individual 13. Mar 19 13. Mar 19 -8,700 $57.93 $-503,991
08. Mar 19 Sell Gregory Hill Individual 07. Mar 19 07. Mar 19 -4,987 $56.73 $-282,913
08. Mar 19 Sell Timothy Goodell Individual 07. Mar 19 07. Mar 19 -6,208 $56.06 $-348,020
08. Mar 19 Sell Andrew Slentz Individual 07. Mar 19 07. Mar 19 -6,217 $57.12 $-355,115
08. Mar 19 Sell Michael Turner Individual 07. Mar 19 07. Mar 19 -7,784 $56.47 $-439,562
08. Mar 19 Sell Richard Lynch Individual 07. Mar 19 07. Mar 19 -1,211 $56.73 $-68,700
08. Mar 19 Sell Barbara Lowery-Yilmaz Individual 07. Mar 19 07. Mar 19 -1,532 $56.73 $-86,910
08. Mar 19 Sell John Rielly Individual 07. Mar 19 07. Mar 19 -2,627 $56.73 $-149,030
08. Mar 19 Buy Edith Holiday Individual 06. Mar 19 06. Mar 19 442 $56.74 $25,079
08. Mar 19 Buy William Schrader Individual 06. Mar 19 06. Mar 19 442 $56.74 $25,079
08. Mar 19 Buy James Quigley Individual 06. Mar 19 06. Mar 19 442 $56.74 $25,079
08. Mar 19 Buy Kevin Meyers Individual 06. Mar 19 06. Mar 19 442 $56.74 $25,079
08. Mar 19 Buy Leonard Coleman Individual 06. Mar 19 06. Mar 19 442 $56.74 $25,079
08. Mar 19 Buy David McManus Individual 06. Mar 19 06. Mar 19 442 $56.74 $25,079
08. Mar 19 Buy Terrence Checki Individual 06. Mar 19 06. Mar 19 442 $56.74 $25,079
08. Mar 19 Buy Marc Lipschultz Individual 06. Mar 19 06. Mar 19 442 $56.74 $25,079
08. Mar 19 Buy Rodney Chase Individual 06. Mar 19 06. Mar 19 442 $56.74 $25,079
08. Mar 19 Buy Risa Lavizzo-Mourey Individual 06. Mar 19 06. Mar 19 442 $56.74 $25,079
05. Mar 19 Sell Barbara Lowery-Yilmaz Individual 04. Mar 19 04. Mar 19 -1,168 $58.90 $-68,795
05. Mar 19 Sell Gregory Hill Individual 04. Mar 19 04. Mar 19 -7,134 $58.90 $-420,193
05. Mar 19 Sell Richard Lynch Individual 04. Mar 19 04. Mar 19 -1,168 $58.90 $-68,795
05. Mar 19 Sell Timothy Goodell Individual 04. Mar 19 04. Mar 19 -3,946 $58.90 $-232,419
05. Mar 19 Sell Michael Turner Individual 04. Mar 19 04. Mar 19 -1,168 $58.90 $-68,795
05. Mar 19 Sell John Rielly Individual 04. Mar 19 04. Mar 19 -3,758 $58.90 $-221,346
14. Feb 19 Sell Michael Turner Individual 12. Feb 19 12. Feb 19 -7,107 $55.44 $-394,012
08. Feb 19 Sell John Rielly Individual 07. Feb 19 07. Feb 19 -5,172 $53.40 $-276,185
08. Feb 19 Sell Michael Turner Individual 07. Feb 19 07. Feb 19 -2,352 $53.40 $-125,597
08. Feb 19 Sell Timothy Goodell Individual 07. Feb 19 07. Feb 19 -5,546 $53.40 $-296,156
08. Feb 19 Sell Gregory Hill Individual 07. Feb 19 07. Feb 19 -11,659 $53.40 $-622,591
08. Feb 19 Sell Barbara Lowery-Yilmaz Individual 07. Feb 19 07. Feb 19 -2,353 $53.40 $-125,650
08. Feb 19 Sell Andrew Slentz Individual 07. Feb 19 07. Feb 19 -2,684 $53.40 $-143,326
08. Feb 19 Sell Richard Lynch Individual 07. Feb 19 07. Feb 19 -17,843 $54.14 $-964,278
26. Nov 18 Sell Michael Turner Individual 21. Nov 18 21. Nov 18 -4,142 $56.82 $-235,348
03. Aug 18 Sell Gregory Hill Individual 02. Aug 18 02. Aug 18 -11,480 $65.69 $-754,121
03. Jul 18 Sell Michael Turner Individual 29. Jun 18 29. Jun 18 -10,243 $67.96 $-696,114
X
Management checks
We assess Hess's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Hess has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Know This Before Buying Hess Corporation (NYSE:HES) For Its Dividend

Could Hess Corporation (NYSE:HES) be an attractive dividend share to own for the long haul? … Yet sometimes, investors buy a popular dividend stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. … NYSE:HES Historical Dividend Yield, April 23rd 2019

Simply Wall St -

Who Has Been Selling Hess Corporation (NYSE:HES) Shares?

So before you buy or sell Hess Corporation (NYSE:HES), you may well want to know whether insiders have been buying or selling. … That means that an insider was selling shares at slightly below the current price (US$60.75). … Over the last year we saw more insider selling of Hess shares, than buying.

Simply Wall St -

What Investors Should Know About Hess Corporation's (NYSE:HES) Financial Strength

Investors seeking to preserve capital in a volatile environment might consider large-cap stocks such as Hess Corporation (NYSE:HES) a safer option. … I will provide an overview of Hess’s financial liquidity and leverage to give you an idea of Hess’s position to take advantage of potential acquisitions or comfortably endure future downturns. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis

Simply Wall St -

Can You Imagine How Hess's Shareholders Feel About The 31% Share Price Increase?

Hess isn't a profitable company, so it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). … In the last 3 years Hess saw its revenue grow at 1.9% per year. … It's probably fair to say that the modest growth is reflected in the modest share price gain of 9.4% per year.

Simply Wall St -

Hess Corporation's (NYSE:HES) Profit Outlook

Hess Corporation, an exploration and production company, develops, produces, purchases, transports, and sells crude oil, natural gas liquids (NGLs), and natural gas. … With the latest financial year loss of -US$4.1b and a trailing-twelve month of -US$3.0b, the US$16b market-cap alleviates its loss by moving closer towards its target of breakeven. … Many investors are wondering the rate at which HES will turn a profit, with the big question being “when will the company breakeven?”?

Simply Wall St -

Who Has Been Selling Hess Corporation (NYSE:HES) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Hess Corporation (NYSE:HES). … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'.

Simply Wall St -

Does Hess Corporation's (NYSE:HES) Debt Level Pose A Problem?

There are a number of reasons that attract investors towards large-cap companies such as Hess Corporation (NYSE:HES), with a market cap of US$16.8b. … Today we will look at Hess’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … Note that this information is centred entirely on financial health and is a high-level overview, so I encourage you to look further

Simply Wall St -

What Hess Corporation’s (NYSE:HES) Insiders Know That You Don't

Hess Corporation, an exploration and production company, develops, produces, purchases, transports, and sells crude oil, natural gas liquids (NGLs), and natural gas. … Generally, insiders selling shares in their own firm sends a bearish signal … The MIT Press (1998) published an article showing that stocks following insider selling underperformed the market by 2.7%

Simply Wall St -

Is Hess Corporation (NYSE:HES) An Attractive Dividend Stock?

A large part of investment returns can be generated by dividend-paying stock given their role in compounding returns over time. … In the past 10 years Hess Corporation (NYSE:HES) has returned an average of 1.00% per year to investors in the form of dividend payouts. … Let's take a look at Hess in more detail.

Simply Wall St -

Hess Corporation (NYSE:HES): What You Have To Know Before Buying For The Upcoming Dividend

On the 29 June 2018, Hess Corporation (NYSE:HES) will be paying shareholders an upcoming dividend amount of $0.25 per share. … 5 questions to ask before buying a dividend stock? … When researching a dividend stock, I always follow the following screening criteria:

Simply Wall St -

Company Info

Description

Hess Corporation, an exploration and production company, explores for, 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, 2018, it had total proved reserves of 1,192 million barrels of oil equivalent. The company is also involved in the gathering, compressing, and processing of natural gas; the fractionation of NGLs; gathering, 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 and Three Forks Shale plays in the Williston Basin area of North Dakota. The company was founded in 1920 and is headquartered in New York, New York.

Details
Name: Hess Corporation
HES
Exchange: NYSE
Founded: 1920
$18,045,326,550
303,435,792
Website: http://www.hess.com
Address: Hess Corporation
1185 Avenue of the Americas,
40th Floor,
New York,
New York, 10036,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE HES Common Stock New York Stock Exchange US USD 01. Mar 1964
DB AHC Common Stock Deutsche Boerse AG DE EUR 01. Mar 1964
LSE 0J50 Common Stock London Stock Exchange GB USD 01. Mar 1964
Number of employees
Current staff
Staff numbers
1,708
Hess employees.
Industry
Oil and Gas Exploration and Production
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/25 00:03
End of day share price update: 2019/05/24 00:00
Last estimates confirmation: 2019/05/23
Last earnings filing: 2019/05/01
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.