Analyst David Deckelbaum of TD Cowen maintained a Hold rating on Hess (HES – Research Report), retaining the price target of $140.00.
David Deckelbaum has given his Hold rating due to a combination of factors including Hess’s consistent execution of its production plans and the alignment of its first-quarter production volumes with expectations. Despite this, there are some discrepancies in the production and capital expenditure figures. While the offshore production volumes exceeded estimates, Bakken production was slightly below due to weather impacts. Additionally, the capital expenditure in the Bakken was notably higher than anticipated, which contributed to the overall capex being above consensus.
Furthermore, the second-quarter production guidance aligns with previous estimates, but the capital expenditure guidance is higher, reflecting increased activity in the Bakken. Legal claims in North Dakota also impacted the financials, although adjusted cash costs were below consensus. These mixed results, combined with the ongoing arbitration related to the CVX deal, contribute to the Hold rating as the company navigates these uncertainties while maintaining its operational plans.
Based on the recent corporate insider activity of 52 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of HES in relation to earlier this year.