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Hess Corp HES

Morningstar Rating
$146.04 +0.59 (0.41%)
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Company Report

Chevron Earnings: Exceeding Expectations and Boosting Dividend 8%

Chevron's fourth-quarter adjusted earnings of $6.5 billion fell from $7.9 billion a year before but modestly exceeded market expectations. Adjusted earnings exclude a previously announced $1.8 billion upstream impairment charge, mainly in California, and $1.9 billion in decommissioning obligations from previously sold assets in the Gulf of Mexico. The earnings decline was largely attributable to lower oil and natural gas prices that offset an increase in production volumes to 3,392 thousand barrels of oil equivalent per day from 3,011 mboe/d the year before due largely to the acquisition of PDC Energy and continued growth in the Permian. Both also lead to a record annual production of 3,120 mboed. Management expects volume growth of 4%-7% in 2024 thanks to a full year of PDC volumes and 10% Permian growth that should offset divestments. The continued volume growth demonstrates Chevron’s hydrocarbon-focused strategy.

Price vs Fair Value

HES is trading at a 17% discount.
Price
$145.40
Fair Value
$176.00
Uncertainty
High
1-Star Price
$664.40
5-Star Price
$721.50
Economic Moat
Rhwmt
Capital Allocation
Smcmllkck

Bulls Say, Bears Say

Bulls

The Stabroek block (Guyana), in which Hess has a 30% stake, is a huge resource, with at least 11 billion barrels of oil equivalent recoverable. It will account for 2% of global oil supply by 2030.

Bears

Liza was sanctioned at a very fortuitous point in the cost cycle, and finding and development costs have been steadily rising for follow-up developments in Guyana.

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News

Trading Information

Previous Close Price
$145.45
Day Range
$145.18146.88
52-Week Range
$113.91167.71
Bid/Ask
$146.17 / $146.25
Market Cap
$44.81 Bil
Volume/Avg
690,442 / 3.5 Mil

Key Statistics

Price/Earnings (Normalized)
28.80
Price/Sales
4.26
Dividend Yield (Trailing)
1.20%
Dividend Yield (Forward)
1.20%
Total Yield
1.20%

Company Profile

Hess is an independent oil and gas producer with key assets in the Bakken Shale, Guyana, the Gulf of Mexico, and Southeast Asia. At the end of 2022, the company reported net proved reserves of 1.3 billion barrels of oil equivalent. Net production averaged 344 thousand barrels of oil equivalent per day in 2022, at a ratio of 72% oil and natural gas liquids and 28% natural gas.
Sector
Energy
Industry
Oil & Gas E&P
Stock Style Box
Mid Core
Total Number of Employees
1,756

Competitors

Valuation

Metric
HES
DVN
MRO
Price/Earnings (Normalized)
28.807.728.61
Price/Book Value
4.972.341.24
Price/Sales
4.261.852.29
Price/Cash Flow
9.954.233.50
Price/Earnings
HES
DVN
MRO

Financial Strength

Metric
HES
DVN
MRO
Quick Ratio
0.920.830.33
Current Ratio
1.051.070.40
Interest Coverage
6.1713.386.55
Quick Ratio
HES
DVN
MRO

Profitability

Metric
HES
DVN
MRO
Return on Assets (Normalized)
6.86%15.69%7.88%
Return on Equity (Normalized)
18.53%32.89%13.87%
Return on Invested Capital (Normalized)
10.30%22.08%10.78%
Return on Assets
HES
DVN
MRO
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