Hess (HES) AI Stock Analysis

• Market Cap: $42.98B
• Dividend Yield: 1.43%
• Average Volume (3M): 1.95M
• Price to Earnings (P/E): 19.2
• Beta (1Y): 0.66
• Revenue Growth: 8.08%
• EPS Growth: 10.59%
• Country: US
• Employees: 1,797
• Sector: Energy
• Sector Strength: 51
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 1.81
• Shares Outstanding: 309,271,060
• 10 Day Avg. Volume: 2,063,233
• 30 Day Avg. Volume: 1,952,258
• PEG Ratio: -1.33
• Price to Book (P/B): 3.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 40.07
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 1.05
• Enterprise Value/Gross Profit: 7.11
• Enterprise Value/Ebitda: 1.92
• 1Y Price Target: $161.57
• Price Target Upside: 16.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 77 Outperform
• Price Target: $155.00 ▲(11.53%Upside)

Hess has a robust financial foundation and positive corporate events indicating strong shareholder confidence. The technical analysis presents a mixed outlook, with short-term momentum but longer-term caution. The valuation is fair, reflecting the company's stable position in the market.

Positive Factors

Growth and Cash Flow

Hess's story remains among the strongest in energy, with long-term, earnings/cash flow accretive growth.

Operational Performance

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

Negative Factors

Legal and Exploration Expenses

HES incurred $129MM of accrued legal claims in North Dakota and exploration expense of $139m, including costs for a dry hole at the Vancouver exploration well.

Production Guidance

1Q25 production guidance is lower than expectations due to planned maintenance in Guyana and weather impacts in the Bakken.

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 presents a strong financial position characterized by high profitability and efficient cash flow management. The company maintains strong margins and a healthy balance sheet, though revenue has slightly declined. Continued focus on debt management and revenue growth is crucial.

Income Statement

Hess demonstrates strong profitability with a high gross profit margin of 59.57% and a net profit margin of 17.86% in TTM. The company has managed to sustain a solid EBIT margin of 38.22% and EBITDA margin of 52.92%. However, revenue has slightly declined by 3.29% from 2024 to TTM, which could indicate market challenges or production issues.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.82, indicating a balanced capital structure. The return on equity (ROE) stands at 19.33%, showing efficient utilization of shareholder funds. Equity ratio is stable at 42.45%, suggesting a solid equity base, though the high total debt level could pose a risk if cash flows fluctuate.

Cash Flow

The cash flow statement is robust with a free cash flow growth rate of 70.34% year-over-year, supported by an operating cash flow to net income ratio of 2.75, indicating strong cash generation relative to earnings. The free cash flow to net income ratio is positive at 0.50, demonstrating adequate free cash flow relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.47B	12.90B	10.51B	11.32B	7.47B	4.67B
Gross Profit	7.43B	10.18B	8.25B	7.91B	4.54B	2.47B
EBITDA	6.60B	7.25B	5.00B	5.74B	3.51B	-112.00M
Net Income	2.23B	2.77B	1.38B	2.10B	559.00M	-3.09B
Balance Sheet
Total Assets	27.14B	26.55B	24.01B	21.70B	20.52B	18.82B
Cash, Cash Equivalents and Short-Term Investments	1.32B	1.17B	1.69B	2.49B	2.71B	1.74B
Total Debt	9.50B	9.46B	9.60B	9.15B	9.14B	9.07B
Total Liabilities	14.75B	14.55B	14.40B	13.20B	13.49B	12.49B
Stockholders Equity	11.52B	11.22B	8.99B	7.86B	6.30B	5.37B
Cash Flow
Free Cash Flow	1.11B	654.00M	-166.00M	1.22B	1.14B	-864.00M
Operating Cash Flow	6.12B	5.60B	3.94B	3.94B	2.89B	1.33B
Investing Cash Flow	-5.14B	-4.94B	-4.11B	-2.56B	-1.32B	-1.71B
Financing Cash Flow	-1.24B	-1.18B	-627.00M	-1.62B	-591.00M	568.00M

Hess Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 138.97
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 138.97 is above the 20-day moving average (MA) of 138.50, above the 50-day MA of 134.06, and above the 200-day MA of 138.86, indicating a bullish trend. The MACD of 1.71 indicates Positive momentum. The RSI at 52.57 is Neutral, neither overbought nor oversold. The STOCH value of 17.13 is Positive, 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	82 Outperform	$65.93B	11.21	20.90%	3.23%	-0.23%	-14.82%
HES	77 Outperform	$42.98B	19.25	20.82%	1.43%	8.08%	10.59%
FANG	77 Outperform	$40.84B	8.55	14.26%	2.86%	47.89%	-7.87%
WDS	75 Outperform	$29.39B	8.18	10.23%	6.87%	-0.93%	115.30%
OXY	74 Outperform	$41.92B	17.24	9.43%	2.25%	1.35%	-33.30%
DVN	74 Outperform	$20.71B	7.34	20.88%	2.98%	12.06%	-16.37%
Sector *	68 Neutral	$14.81B	9.70	6.36%	5.32%	4.12%	-71.24%

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.