Hess (HES) AI Stock Analysis

• Market Cap: $41.27B
• Dividend Yield: 1.45%
• Average Volume (3M): 1.73M
• Price to Earnings (P/E): 18.4
• Beta (1Y): 0.70
• Revenue Growth: 8.08%
• EPS Growth: 10.59%
• Country: US
• Employees: 1,797
• Sector: Energy
• Sector Strength: 43
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 1.81
• Shares Outstanding: 309,271,060
• 10 Day Avg. Volume: 2,071,027
• 30 Day Avg. Volume: 1,733,301
• PEG Ratio: 3.61
• Price to Book (P/B): 4.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 74.69
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $156.94
• Price Target Upside: 17.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 75 Outperform
• Price Target: $150.00 ▲(12.74%Upside)

Hess demonstrates strong financial fundamentals with high profitability and effective cash flow management, driving its strong score. Technical analysis presents mixed signals with some resistance levels, while valuation metrics suggest fair market pricing. Recent corporate events reflect positive shareholder sentiment, though the impact is not direct due to weight reallocation.

Positive Factors

Operational Performance

Hess highlighted strong operational performance and its view of Guyana potential.

Strategic Partnership

Hess pointed to its assets complementing Chevron’s portfolio, providing immediate FCF, capital returns, and diversification.

Negative Factors

Exploration Costs

HES incurred exploration expense of $139m in 4Q, including costs for a dry hole at the Vancouver exploration well.

Legal Expenses

HES incurred $129MM of accrued legal claims in North Dakota that flowed through G&A.

Hess Business Overview & Revenue Model

Company Description

Hess Corporation (HES) is a global independent energy company primarily engaged in the exploration and production of crude oil and natural gas. Headquartered in New York City, the company operates both onshore and offshore in key regions, including the United States, South America, and Southeast Asia. Hess focuses on developing high-quality resources in areas with significant growth potential, combining technology and operational excellence to enhance its exploration and production activities.

How the Company Makes Money

Hess Corporation generates revenue primarily through the exploration, development, and production of crude oil and natural gas. The company earns money by extracting oil and gas from its operated and non-operated assets and selling these commodities in the global market. Key revenue streams include the sale of crude oil, natural gas liquids (NGLs), and natural gas. The company's earnings are influenced by factors such as market prices for oil and gas, production volumes, and operational costs. Strategic partnerships, including joint ventures and collaborations with other energy companies, also play a significant role in Hess's ability to access new resources and enhance its production capabilities.

Hess Financial Statement Overview

Summary

Hess's financial performance in 2024 is impressive, marked by strong revenue and profit growth, enhanced margins, and improved cash flow metrics. The balance sheet reflects a stable capital structure, though monitoring debt levels and equity ratios is advisable. The company is well-positioned for growth in the fossil fuels industry, although potential risks include market volatility and regulatory changes affecting the sector.

Income Statement

Hess has shown strong revenue growth, with a 23.8% increase from 2023 to 2024. The gross profit margin remains robust at 100%, indicating efficient cost management. The net profit margin improved to 21.3% in 2024, up from 13.1% in 2023, reflecting enhanced profitability. EBIT and EBITDA margins are strong at 76.1% and 52.8% respectively in 2024, showing operational efficiency. Overall, Hess demonstrates solid growth and profitability, though it's important to monitor fluctuations in the fossil fuels industry.

Balance Sheet

The debt-to-equity ratio of 0.84 in 2024 indicates a moderate leverage level, which is stable compared to industry standards. The return on equity has improved to 24.7% in 2024 from 15.4% in 2023, signifying effective use of equity capital. The equity ratio of 42.3% is healthy, showing that a significant portion of assets is financed by shareholders' equity. Overall, the balance sheet is strong but maintaining or improving the equity ratio would enhance financial stability.

Cash Flow

Hess has demonstrated significant cash flow improvements with a strong operating cash flow to net income ratio of 2.29 in 2024, indicating high-quality earnings. The free cash flow has also turned positive in 2024 at $1.713 billion, a remarkable turnaround from a negative free cash flow in 2023. The free cash flow to net income ratio stands at 0.62, reflecting solid cash generation relative to profit. Overall, cash flow management appears robust, supporting future growth and investment opportunities.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
13.02B	10.51B	11.32B	7.47B	4.67B
	Gross Profit
13.02B	8.25B	7.91B	4.54B	1.25B
	EBIT
9.91B	5.03B	4.13B	2.09B	-343.00M
	EBITDA
6.87B	5.09B	5.79B	3.51B	-112.00M
	Net Income Common Stockholders
2.77B	1.38B	2.10B	890.00M	-2.84B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.17B	1.69B	2.49B	2.71B	1.74B
	Total Assets
26.55B	24.01B	21.73B	20.52B	18.82B
	Total Debt
9.46B	9.60B	9.15B	9.14B	9.07B
	Net Debt
8.29B	7.91B	6.66B	6.43B	7.34B
	Total Liabilities
14.55B	14.40B	13.11B	13.49B	12.49B
	Stockholders Equity
11.22B	8.99B	7.98B	6.30B	5.37B
Cash Flow		Free Cash Flow
654.00M	-166.00M	1.22B	1.14B	-864.00M
	Operating Cash Flow
5.60B	3.94B	3.94B	2.89B	1.33B
	Investing Cash Flow
-4.94B	-4.11B	-2.56B	-1.32B	-1.71B
	Financing Cash Flow
-1.18B	-627.00M	-1.11B	-591.00M	568.00M

Hess Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 133.05
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HES, the sentiment is Positive. The current price of 133.05 is below the 20-day moving average (MA) of 133.31, below the 50-day MA of 134.78, and below the 200-day MA of 138.80, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 55.73 is Neutral, neither overbought nor oversold. The STOCH value of 64.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HES.

Hess Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EOG	78 Outperform	$60.46B	10.30	20.90%	3.40%	-0.23%	-14.82%
WDS	78 Outperform	$27.98B	7.88	10.23%	7.94%	-0.93%	115.30%
HES	75 Outperform	$41.27B	18.43	20.82%	1.45%	8.08%	10.59%
FANG	75 Outperform	$41.57B	8.70	14.26%	3.76%	47.89%	-7.87%
OXY	74 Outperform	$41.25B	16.93	9.43%	2.15%	1.35%	-33.30%
DVN	73 Outperform	$20.26B	7.15	20.88%	3.96%	12.06%	-16.37%
Sector *	57 Neutral	$7.16B	3.10	-4.49%	5.66%	0.82%	-49.15%

Hess Corporate Events

Hess Corporation Approves Key Proposals at Annual Meeting

On May 14, 2025, Hess Corporation held its annual stockholders meeting where all proposed matters were approved. Key decisions included the election of twelve directors, approval of executive compensation with 95.6% support, and ratification of Ernst & Young LLP as the independent registered public accountants with 96.5% support. These approvals reflect strong shareholder confidence in the company’s leadership and strategic direction.

The most recent analyst rating on (HES) stock is a Hold with a $145.00 price target. To see the full list of analyst forecasts on Hess stock, see the HES Stock Forecast page.