Announcement • Jul 09
Hess Corporation to Report Q2, 2025 Results on Jul 30, 2025 Hess Corporation announced that they will report Q2, 2025 results on Jul 30, 2025 Major Estimate Revision • Jul 07
Consensus EPS estimates increase by 17%, revenue downgraded The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast fell from US$11.4b to US$11.2b. EPS estimate rose from US$4.34 to US$5.08. Net income forecast to shrink 19% next year vs 6.5% growth forecast for Oil and Gas industry in the US . Consensus price target broadly unchanged at US$158. Share price rose 3.5% to US$143 over the past week. Upcoming Dividend • Jun 09
Upcoming dividend of US$0.50 per share Eligible shareholders must have bought the stock before 16 June 2025. Payment date: 30 June 2025. Payout ratio is a comfortable 27% and this is well supported by cash flows. Trailing yield: 1.5%. Lower than top quartile of American dividend payers (4.8%). Lower than average of industry peers (4.1%). Recent Insider Transactions • Jun 08
CEO & Director recently sold US$64m worth of stock On the 6th of June, John Hess sold around 475k shares on-market at roughly US$135 per share. This transaction amounted to 3.1% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. John has been a net seller over the last 12 months, reducing personal holdings by US$235m. Major Estimate Revision • May 24
Consensus EPS estimates increase by 18%, revenue downgraded The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast fell from US$11.5b to US$11.4b. EPS estimate rose from US$3.82 to US$4.49. Net income forecast to shrink 17% next year vs 6.8% growth forecast for Oil and Gas industry in the US . Consensus price target broadly unchanged at US$159. Share price fell 2.6% to US$131 over the past week. Declared Dividend • May 18
First quarter dividend of US$0.50 announced Shareholders will receive a dividend of US$0.50. Ex-date: 16th June 2025 Payment date: 30th June 2025 Dividend yield will be 1.5%, which is lower than the industry average of 4.5%. Sustainability & Growth Dividend is covered by both earnings (27% earnings payout ratio) and cash flows (55% cash payout ratio). The dividend has increased by an average of 7.2% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 70% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • May 15
Hess Corporation Announces Regular Quarterly Dividend on Common Stock, Payable on June 30, 2025 The Board of Directors of Hess Corporation declared a regular quarterly dividend of 50 cents per share payable on the Common Stock of the Corporation on June 30, 2025 to holders of record at the close of business on June 16, 2025. Reported Earnings • May 01
First quarter 2025 earnings: EPS and revenues miss analyst expectations First quarter 2025 results: EPS: US$1.39 (down from US$3.17 in 1Q 2024). Revenue: US$2.86b (down 12% from 1Q 2024). Net income: US$430.0m (down 56% from 1Q 2024). Profit margin: 15% (down from 30% in 1Q 2024). The decrease in margin was primarily driven by lower revenue. Revenue missed analyst estimates by 2.2%. Earnings per share (EPS) also missed analyst estimates by 20%. Revenue is forecast to grow 7.9% p.a. on average during the next 3 years, compared to a 3.5% growth forecast for the Oil and Gas industry in the US. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Announcement • Apr 30
Hess Corporation Provides Production Guidance for the Second Quarter of 2025 Hess Corporation provided production guidance for the second quarter of 2025. For the quarter, the company expects E&P net production to be in the range of 480,000 boepd to 490,000 boepd. Major Estimate Revision • Apr 21
Consensus EPS estimates fall by 13% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from US$12.5b to US$12.2b. EPS estimate also fell from US$7.39 per share to US$6.42 per share. Net income forecast to shrink 27% next year vs 9.3% growth forecast for Oil and Gas industry in the US . Consensus price target broadly unchanged at US$163. Share price was steady at US$126 over the past week. Announcement • Apr 10
Hess Corporation to Report Q1, 2025 Results on Apr 30, 2025 Hess Corporation announced that they will report Q1, 2025 results on Apr 30, 2025 Announcement • Apr 07
Hess Corporation, Annual General Meeting, May 14, 2025 Hess Corporation, Annual General Meeting, May 14, 2025. Valuation Update With 7 Day Price Move • Apr 04
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to US$134, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 9x in the Oil and Gas industry in the US. Total returns to shareholders of 23% over the past three years. Recent Insider Transactions • Mar 31
CEO & Director recently sold US$56m worth of stock On the 28th of March, John Hess sold around 350k shares on-market at roughly US$159 per share. This transaction amounted to 2.2% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. John has been a net seller over the last 12 months, reducing personal holdings by US$171m. Recent Insider Transactions Derivative • Mar 21
Key Executive notifies of intention to sell stock Gregory Hill intends to sell 58k shares in the next 90 days after lodging an Intent To Sell Form on the 20th of March. If the sale is conducted around the recent share price of US$156, it would amount to US$9.0m. Since March 2024, Gregory's direct individual holding has increased from 125.67k shares to 142.59k. Company insiders have collectively sold US$148m more than they bought, via options and on-market transactions in the last 12 months. Declared Dividend • Mar 09
Fourth quarter dividend of US$0.50 announced Shareholders will receive a dividend of US$0.50. Ex-date: 17th March 2025 Payment date: 31st March 2025 Dividend yield will be 1.3%, which is lower than the industry average of 4.5%. Sustainability & Growth Dividend is covered by earnings (21% earnings payout ratio) but not adequately covered by cash flows (94% cash payout ratio). The dividend has increased by an average of 7.2% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 41% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Mar 06
Hess Announces Regular Quarterly Dividend on Common Stock, Payable on March 31, 2025 The Board of Directors of Hess Corporation declared a regular quarterly dividend of 50 cents per share payable on the Common Stock of the Corporation on March 31, 2025 to holders of record at the close of business on March 17, 2025. Reported Earnings • Mar 03
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: US$9.03 (up from US$4.52 in FY 2023). Revenue: US$12.7b (up 23% from FY 2023). Net income: US$2.77b (up 100% from FY 2023). Profit margin: 22% (up from 13% in FY 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.9%. Earnings per share (EPS) also surpassed analyst estimates by 1.6%. Revenue is forecast to grow 6.5% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Oil and Gas industry in the US. Over the last 3 years on average, earnings per share has increased by 32% per year but the company’s share price has only increased by 15% per year, which means it is significantly lagging earnings growth. Board Change • Mar 02
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 2 experienced directors. 9 highly experienced directors. Independent Director Lisa Glatch was the last director to join the board, commencing their role in 2022. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Recent Insider Transactions Derivative • Feb 09
CEO & Director exercised options and sold US$7.1m worth of stock On the 5th of February, John Hess exercised options to acquire 50k shares at no cost and sold these for an average price of US$143 per share. This trade did not impact their existing holding. For the year to December 2018, John's total compensation was 9% salary and 91% other compensation. This indicates that these sales could comprise a meaningful part of their income for the year. Since March 2024, John's direct individual holding has decreased from 21.65m shares to 15.56m. Company insiders have collectively sold US$184m more than they bought, via options and on-market transactions in the last 12 months. Reported Earnings • Jan 29
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: US$9.02 (up from US$4.52 in FY 2023). Revenue: US$13.0b (up 26% from FY 2023). Net income: US$2.77b (up 100% from FY 2023). Profit margin: 21% (up from 13% in FY 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.9%. Earnings per share (EPS) also surpassed analyst estimates by 1.6%. Revenue is forecast to grow 5.6% p.a. on average during the next 3 years, compared to a 3.5% growth forecast for the Oil and Gas industry in the US. Over the last 3 years on average, earnings per share has increased by 32% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Announcement • Jan 29
Hess Corporation Provides Production Guidance for the First Quarter of 2025 Hess Corporation provided production guidance for the first quarter of 2025. For the quarter, the company expects net production guidance for Guyana for the first quarter of 2025 includes tax barrels of approximately 20,000 bopd. Announcement • Jan 07
Hess Corporation to Report Q4, 2024 Results on Jan 29, 2025 Hess Corporation announced that they will report Q4, 2024 results on Jan 29, 2025 Declared Dividend • Dec 08
Third quarter dividend of US$0.50 announced Shareholders will receive a dividend of US$0.50. Ex-date: 16th December 2024 Payment date: 31st December 2024 Dividend yield will be 1.3%, which is lower than the industry average of 4.5%. Sustainability & Growth Dividend is covered by both earnings (21% earnings payout ratio) and cash flows (62% cash payout ratio). The dividend has increased by an average of 7.2% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 57% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Dec 05
Hess Corporation Announces Regular Quarterly Dividend on Common Stock, Payable on December 31, 2024 The Board of Directors of Hess Corporation declared a regular quarterly dividend of 50 cents per share payable on the Common Stock of the Corporation on December 31, 2024 to holders of record at the close of business on December 16, 2024. Recent Insider Transactions • Nov 25
CEO & Director recently sold US$51m worth of stock On the 22nd of November, John Hess sold around 343k shares on-market at roughly US$148 per share. This transaction amounted to 1.6% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger sale worth US$65m. John has been a net seller over the last 12 months, reducing personal holdings by US$135m. Recent Insider Transactions • Nov 08
Key Executive recently sold US$8.7m worth of stock On the 5th of November, Gregory Hill sold around 63k shares on-market at roughly US$139 per share. This transaction amounted to 50% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Gregory has been a net seller over the last 12 months, reducing personal holdings by US$12m. Recent Insider Transactions Derivative • Nov 07
Key Executive notifies of intention to sell stock Gregory Hill intends to sell 63k shares in the next 90 days after lodging an Intent To Sell Form on the 5th of November. If the sale is conducted around the recent share price of US$139, it would amount to US$8.7m. Since March 2024, Gregory has owned 125.67k shares directly. Company insiders have collectively sold US$42m more than they bought, via options and on-market transactions in the last 12 months. Announcement • Nov 02
Hess Corporation Provides Consolidated Production Guidance for the Fourth Quarter of 2024 Hess Corporation provided production guidance for the fourth quarter of 2024. For the quarter, the company's E&P net production is expected to be in the range of 475,000 boepd to 485,000 boepd, primarily reflecting recovery from downtime in the third quarter of 2024 at Guyana and Southeast Asia partially offset by planned maintenance at the Tubular Bells production facility in the fourth quarter of 2024. Reported Earnings • Nov 01
Third quarter 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2024 results: EPS: US$1.62 (down from US$1.65 in 3Q 2023). Revenue: US$3.13b (up 14% from 3Q 2023). Net income: US$498.0m (down 1.2% from 3Q 2023). Profit margin: 16% (down from 18% in 3Q 2023). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 5.1%. Earnings per share (EPS) missed analyst estimates by 9.7%. Revenue is forecast to grow 6.2% p.a. on average during the next 3 years, compared to a 3.0% growth forecast for the Oil and Gas industry in the US. Over the last 3 years on average, earnings per share has increased by 40% per year but the company’s share price has only increased by 18% per year, which means it is significantly lagging earnings growth. Announcement • Oct 03
Hess Corporation to Report Q3, 2024 Results on Oct 30, 2024 Hess Corporation announced that they will report Q3, 2024 results on Oct 30, 2024 Announcement • Oct 01
Hess Corporation Announces HSR Clearance Of Chevron-Hess Merger Hess Corporation announced that the Federal Trade Commission (FTC) antitrust review of the Chevron-Hess merger has been completed, satisfying one of the closing conditions for the transaction. To facilitate completion of the merger, Hess and Chevron have agreed that Mr. Hess will not be appointed to the Chevron Board of Directors in order to address a concern raised by the FTC about Mr. Hess’ communications with a limited number of OPEC officials. However, Mr. Hess will serve as an advisor and representative for Chevron on government relations and social investments in Guyana as well as on support for the Salk Institute’s Harnessing Plants Initiative. The Hess Board of Directors believes that the competitive concern raised by the FTC about Mr. Hess’ communications is without merit, and fully supports Mr. Hess in his role as CEO of Hess Corporation. Mr. Hess’ public and private communications with OPEC officials were consistent with his communications with U.S. government officials, the International Energy Agency and global business leaders on what will be needed to ensure an affordable and orderly energy transition. Completion of the merger remains subject to the Merger Agreement's closing conditions, including the satisfactory resolution of ongoing arbitration proceedings regarding preemptive rights in the Stabroek Block joint operating agreement. Declared Dividend • Sep 08
Second quarter dividend increased to US$0.50 Dividend of US$0.50 is 14% higher than last year. Ex-date: 16th September 2024 Payment date: 30th September 2024 Dividend yield will be 1.4%, which is lower than the industry average of 4.5%. Sustainability & Growth Dividend is covered by earnings (20% earnings payout ratio) but not adequately covered by cash flows (98% cash payout ratio). The dividend has increased by an average of 5.8% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 54% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Sep 05
Hess Corporation Increases Regular Quarterly Dividend on Common Stock, Payable on September 30, 2024 The Board of Directors of Hess Corporation declared a regular quarterly dividend of 50 cents per share payable on the Common Stock of the Corporation on September 30, 2024 to holders of record at the close of business on September 16, 2024. The dividend represents an approximate 14% increase compared to the dividend for the second quarter of 2024, which equals a 25 cent increase per share on an annualized basis. Reported Earnings • Aug 01
Second quarter 2024 earnings: Revenues and EPS in line with analyst expectations Second quarter 2024 results: EPS: US$2.47 (up from US$0.39 in 2Q 2023). Revenue: US$3.26b (up 45% from 2Q 2023). Net income: US$757.0m (up US$638.0m from 2Q 2023). Profit margin: 23% (up from 5.3% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 6.4% p.a. on average during the next 3 years, compared to a 2.4% growth forecast for the Oil and Gas industry in the US. Over the last 3 years on average, earnings per share has increased by 50% per year but the company’s share price has only increased by 28% per year, which means it is significantly lagging earnings growth. Announcement • Jul 31
Hess Corporation Provides Production Guidance for the Third Quarter of 2024 Hess Corporation provided production guidance for the third quarter of 2024. For the quarter, the company expects E&P net production to be in the range of 460,000 boepd to 470,000 boepd, primarily reflecting planned downtime in Guyana and Southeast Asia. Announcement • Jul 04
Hess Corporation to Report Q2, 2024 Results on Jul 31, 2024 Hess Corporation announced that they will report Q2, 2024 results on Jul 31, 2024 Upcoming Dividend • Jun 07
Upcoming dividend of US$0.44 per share Eligible shareholders must have bought the stock before 14 June 2024. Payment date: 28 June 2024. Payout ratio is a comfortable 27% but the company is not cash flow positive. Trailing yield: 1.2%. Lower than top quartile of American dividend payers (4.7%). Lower than average of industry peers (4.1%). Declared Dividend • May 19
First quarter dividend of US$0.44 announced Dividend of US$0.44 is the same as last year. Ex-date: 14th June 2024 Payment date: 28th June 2024 Dividend yield will be 1.1%, which is lower than the industry average of 4.5%. Sustainability & Growth Dividend is covered by earnings (27% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 5.8% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 52% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • May 16
Hess Corporation Declares Regular Quarterly Dividend, Payable on June 28, 2024 The Board of Directors of Hess Corporation declared a regular quarterly dividend of 43.75 cents per share payable on the Common Stock of the Corporation on June 28, 2024 to holders of record at the close of business on June 14, 2024. Major Estimate Revision • May 02
Consensus EPS estimates increase by 15% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has improved. 2024 revenue forecast increased from US$13.0b to US$13.4b. EPS estimate increased from US$8.22 to US$9.44 per share. Net income forecast to grow 49% next year vs 4.3% growth forecast for Oil and Gas industry in the US. Consensus price target broadly unchanged at US$174. Share price was steady at US$159 over the past week. Reported Earnings • Apr 25
First quarter 2024 earnings: EPS and revenues exceed analyst expectations First quarter 2024 results: EPS: US$3.18 (up from US$1.13 in 1Q 2023). Revenue: US$3.34b (up 41% from 1Q 2023). Net income: US$972.0m (up 181% from 1Q 2023). Profit margin: 29% (up from 15% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 5.3%. Earnings per share (EPS) also surpassed analyst estimates by 90%. Revenue is forecast to grow 7.1% p.a. on average during the next 3 years, compared to a 2.1% growth forecast for the Oil and Gas industry in the US. Over the last 3 years on average, earnings per share has increased by 60% per year but the company’s share price has only increased by 28% per year, which means it is significantly lagging earnings growth. Announcement • Apr 06
Hess Corporation, Annual General Meeting, May 15, 2024 Hess Corporation, Annual General Meeting, May 15, 2024, at 09:00 Central Standard Time. Agenda: To elect twelve directors; to conduct a non-binding advisory vote to approve the compensation of named executive officers; to act upon the ratification of the selection by the audit committee of Ernst & Young LLP as independent registered public accountants; and to consider other business issues. Announcement • Apr 05
Hess Corporation to Report Q1, 2024 Results on Apr 25, 2024 Hess Corporation announced that they will report Q1, 2024 results on Apr 25, 2024 Recent Insider Transactions • Mar 22
Insider recently sold US$1.1m worth of stock On the 20th of March, Geurt Schoonman sold around 7k shares on-market at roughly US$151 per share. This transaction amounted to 18% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger sale from another insider worth US$20m. Insiders have been net sellers, collectively disposing of US$34m more than they bought in the last 12 months. Recent Insider Transactions Derivative • Mar 21
Insider notifies of intention to sell stock Andrew Slentz intends to sell 20k shares in the next 90 days after lodging an Intent To Sell Form on the 19th of March. If the sale is conducted around the recent share price of US$150, it would amount to US$3.0m. Since September 2023, Andrew's direct individual holding has increased from 34.27k shares to 50.22k. Company insiders have collectively sold US$50m more than they bought, via options and on-market transactions in the last 12 months. Announcement • Mar 19
Exxon Mobil Chief Executive Officer Says Not Trying to Acquire Hess Exxon Mobil Corporation (NYSE:XOM) Chief Executive Officer Darren Woods on March 18, 2024 said his company is trying to secure preemption rights over Hess Corporation (NYSE:HES) Guyana assets in its dispute with Chevron Corporation (NYSE:CVX), not buy the company itself. In his first public remarks on the company's pursuit of an arbitration case that could block Chevron's $53 billion deal for Hess, Woods said Exxon would not have waited for Chevron to announce its Hess deal if it had wanted to buy Hess. "We're basically standing up for what we believe is a fundamental right," Woods told Reuters. Exxon is trying to "secure and confirm the rights in that contract gives the existing partners." Exxon wants to "evaluate that value and do what is in the best interest of Exxon Mobil shareholders, given the investments that we've made and all the work we've done to make that successful." Hess and Chevron have said they disagree with Exxon's interpretation of the joint operating agreement that governs the Exxon, Hess and CNOOC Limited (SEHK:883), consortium responsible for all of Guyana's oil production. Chevron's acquisition of Hess has been stalled by the U.S. Federal Trade Commission's request for additional information on the merger. That request pushed back any closing to at least the middle of this year. Declared Dividend • Mar 10
Fourth quarter dividend of US$0.44 announced Dividend of US$0.44 is the same as last year. Ex-date: 15th March 2024 Payment date: 28th March 2024 Dividend yield will be 1.2%, which is lower than the industry average of 4.5%. Sustainability & Growth Dividend is covered by earnings (39% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 5.8% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 67% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Recent Insider Transactions • Mar 03
CEO & Director recently sold US$20m worth of stock On the 29th of February, John Hess sold around 136k shares on-market at roughly US$146 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. This was John's only on-market trade for the last 12 months. Major Estimate Revision • Feb 14
Consensus EPS estimates fall by 11% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from US$13.8b to US$12.6b. EPS estimate also fell from US$8.12 per share to US$7.20 per share. Net income forecast to grow 66% next year vs 2.0% decline forecast for Oil and Gas industry in the US. Consensus price target broadly unchanged at US$165. Share price was steady at US$143 over the past week. Recent Insider Transactions Derivative • Feb 11
Key Executive exercised options and sold US$1.2m worth of stock On the 7th of February, Gregory Hill exercised options to acquire 8k shares at no cost and sold these for an average price of US$145 per share. This trade did not impact their existing holding. Since March 2023, Gregory's direct individual holding has decreased from 116.35k shares to 82.93k. Company insiders have collectively sold US$25m more than they bought, via options and on-market transactions in the last 12 months. New Risk • Feb 01
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 13% Last year net profit margin: 19% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks High level of debt (72% net debt to equity). Profit margins are more than 30% lower than last year (13% net profit margin). Major Estimate Revision • Feb 01
Consensus revenue estimates increase by 12%, EPS downgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast increased from US$12.3b to US$13.8b. EPS estimate fell from US$8.34 to US$7.11. Net income forecast to grow 50% next year vs 0.6% growth forecast for Oil and Gas industry in the US. Consensus price target broadly unchanged at US$166. Share price was steady at US$141 over the past week. Buy Or Sell Opportunity • Feb 01
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 4.9% to US$141. The fair value is estimated to be US$178, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 31% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 9.3% per annum. Earnings are also forecast to grow by 19% per annum over the same time period. Announcement • Jan 12
Hess Corporation to Report Q4, 2023 Results on Jan 31, 2024 Hess Corporation announced that they will report Q4, 2023 results on Jan 31, 2024 Announcement • Dec 07
Hess Corporation Announces Regular Quarterly Dividend on Common Stock, Payable on December 29, 2023 The Board of Directors of Hess Corporation declared a regular quarterly dividend of 43.75 cents per share payable on the Common Stock of the Corporation on December 29, 2023 to holders of record at the close of business on December 18, 2023. Reported Earnings • Oct 26
Third quarter 2023 earnings: EPS and revenues exceed analyst expectations Third quarter 2023 results: EPS: US$1.64 (down from US$1.67 in 3Q 2022). Revenue: US$2.74b (down 10% from 3Q 2022). Net income: US$504.0m (down 2.1% from 3Q 2022). Profit margin: 18% (up from 17% in 3Q 2022). The increase in margin was driven by lower expenses. Revenue exceeded analyst estimates by 11%. Earnings per share (EPS) also surpassed analyst estimates by 31%. Revenue is forecast to grow 9.9% p.a. on average during the next 3 years, compared to a 2.0% decline forecast for the Oil and Gas industry in the US. Over the last 3 years on average, earnings per share has increased by 110% per year but the company’s share price has only increased by 60% per year, which means it is significantly lagging earnings growth. Announcement • Oct 26
Hess Corporation Updates Production Guidance for the Full Year 2023 Hess Corporation updated production guidance for the full year 2023. Net production is now forecast to be approximately 390,000 boepd, which is at the upper end of the previous guidance range of 385,000 boepd to 390,000 boepd. Announcement • Oct 24
Chevron Corporation (NYSE:CVX) entered into a definitive agreement to acquire Hess Corporation (NYSE:HES) for approximately $53 billion. Chevron Corporation (NYSE:CVX) entered into a definitive agreement to acquire Hess Corporation (NYSE:HES) for approximately $53 billion on October 22, 2023. Under the terms of the agreement, Hess shareholders will receive 1.0250 shares of Chevron for each Hess share. The total enterprise value, including debt, of the transaction is $60 billion. In aggregate, upon closing of the transaction, Chevron will issue approximately 317 million shares of common stock. The transaction price represents a premium of 10.3% on a 20-day average based on closing stock prices on October 20, 2023. In addition, John Hess is expected to join Chevron’s Board of Directors. The transaction would be accretive to cash flow per share and extends growth into 2030s.
The acquisition is subject to Hess shareholder approval. It is also subject to regulatory approvals and other customary closing conditions. The transaction has been unanimously approved by the Boards of Directors of both companies and is expected to close by the end of the first half of 2024. Morgan Stanley & Co. LLC is acting as lead financial advisor to Chevron. Evercore also advised Chevron. Paul, Weiss, Rifkind, Wharton & Garrison LLP is acting as legal advisor to Chevron. Goldman Sachs & Co. LLC is acting as lead financial advisor to Hess. J.P. Morgan Securities LLC also advised Hess. Wachtell, Lipton, Rosen & Katz is acting as legal advisor to Hess. Announcement • Oct 06
Hess Corporation to Report Q3, 2023 Results on Oct 05, 2023 Hess Corporation announced that they will report Q3, 2023 results on Oct 05, 2023 Announcement • Sep 07
Hess Corporation Increases Regular Quarterly Dividend on Common Stock, Payable on September 29, 2023 The Board of Directors of Hess Corporation declared a regular quarterly dividend of 43.75 cents per share payable on the Common Stock of the Corporation on September 29, 2023 to holders of record at the close of business on September 18, 2023. Recent Insider Transactions Derivative • Sep 03
Senior VP & Chief Exploration Officer notifies of intention to sell stock Barbara Lowery-Yilmaz intends to sell 24k shares in the next 90 days after lodging an Intent To Sell Form on the 1st of September. If the sale is conducted around the recent share price of US$155, it would amount to US$3.8m. Since March 2023, Barbara has owned 113.67k shares directly. Company insiders have collectively sold US$54m more than they bought, via options and on-market transactions in the last 12 months. Recent Insider Transactions • Aug 02
Key Executive recently sold US$5.1m worth of stock On the 31st of July, Gregory Hill sold around 33k shares on-market at roughly US$151 per share. This transaction amounted to 29% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Gregory has been a net seller over the last 12 months, reducing personal holdings by US$10.0m. Announcement • Jul 27
Hess Corporation Revises Production Guidance for the Full Year 2023 Hess Corporation revised production guidance for the full year 2023. for the year, the company expects Net production to be approximately 115,0002 bopd, compared to its previous guidance range of 105,000 bopd to 110,000 bopd. Reported Earnings • Jul 26
Second quarter 2023 earnings: EPS misses analyst expectations Second quarter 2023 results: EPS: US$0.39 (down from US$2.15 in 2Q 2022). Revenue: US$2.32b (down 20% from 2Q 2022). Net income: US$119.0m (down 82% from 2Q 2022). Profit margin: 5.1% (down from 23% in 2Q 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 24%. Revenue is forecast to grow 6.3% p.a. on average during the next 3 years, compared to a 5.4% decline forecast for the Oil and Gas industry in the US. Over the last 3 years on average, earnings per share has increased by 120% per year but the company’s share price has only increased by 43% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Jul 24
Consensus EPS estimates fall by 12% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from US$9.75b to US$9.55b. EPS estimate also fell from US$4.71 per share to US$4.14 per share. Net income forecast to shrink 20% next year vs 26% decline forecast for Oil and Gas industry in the US. Consensus price target broadly unchanged at US$157. Share price rose 8.3% to US$146 over the past week. Major Estimate Revision • Jul 18
Consensus EPS estimates fall by 12% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate fell from US$4.90 to US$4.31 per share. Revenue forecast steady at US$9.75b. Net income forecast to shrink 18% next year vs 26% decline forecast for Oil and Gas industry in the US. Consensus price target broadly unchanged at US$158. Share price was steady at US$137 over the past week. Buying Opportunity • Jul 06
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 4.6%. The fair value is estimated to be US$170, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 31% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 4.5% per annum. Earnings is also forecast to grow by 17% per annum over the same time period. Upcoming Dividend • Jun 07
Upcoming dividend of US$0.44 per share at 1.3% yield Eligible shareholders must have bought the stock before 14 June 2023. Payment date: 30 June 2023. Payout ratio is a comfortable 24% and this is well supported by cash flows. Trailing yield: 1.3%. Lower than top quartile of American dividend payers (5.1%). Lower than average of industry peers (5.0%). Buying Opportunity • Jun 01
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 9.7%. The fair value is estimated to be US$158, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 31% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 6.7% per annum. Earnings is also forecast to grow by 19% per annum over the same time period. Announcement • May 18
Hess Corporation Declares Regular Quarterly Dividend, Payable on the Common Stock of the Corporation on June 30, 2023 The Board of Directors of Hess Corporation declared a regular quarterly dividend of 43.75 cents per share payable on the Common Stock of the Corporation on June 30, 2023 to holders of record at the close of business on June 15, 2023. Announcement • Jan 25
Hess Corporation Provides Production Guidance for the Year 2023 Hess Corporation provided production guidance for the year 2023. Net production is forecast to average between 355,000 and 365,000 barrels of oil equivalent per day in 2023. Bakken net production is forecast to average between 165,000 and 170,000 barrels of oil equivalent per day and Guyana net production is forecast to average approximately 100,000 barrels of oil per day in 2023.