Hess (HES) AI Stock Analysis

• Market Cap: $46.07B
• Dividend Yield: 1.34%
• Average Volume (3M): 2.33M
• Price to Earnings (P/E): 20.6
• Beta (1Y): 0.66
• Revenue Growth: 8.08%
• EPS Growth: 10.59%
• Country: US
• Employees: 1,797
• Sector: Energy
• Sector Strength: 44
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 1.81
• Shares Outstanding: 309,271,060
• 10 Day Avg. Volume: 2,801,182
• 30 Day Avg. Volume: 2,327,760
• PEG Ratio: -1.36
• Price to Book (P/B): 3.98
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 41.19
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 1.08
• Enterprise Value/Gross Profit: 7.29
• Enterprise Value/Ebitda: 1.97
• 1Y Price Target: $163.38
• Price Target Upside: 9.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 74 Outperform
• Price Target: $168.00 ▲(12.77%Upside)

Hess Corporation exhibits strong financial performance and solid corporate governance, which are its primary strengths. The technical indicators suggest a positive but potentially overextended market position. The moderate valuation and strong shareholder confidence support the overall score.

Positive Factors

Merger Potential

HES remains a top pick for international exploration and production companies, supported by the anticipated merger with CVX.

Operational Performance

Hess highlighted strong operational performance over the past 18 months and its view of Guyana potential.

Production and Growth

HES beat total production estimates by 3% at 495 MBOED, with oil volumes also exceeding expectations.

Negative Factors

Commodity Price Fluctuations

Further downside in commodity prices could lower CVX and HES share prices, reducing the benefits of the merger.

Exploration Costs

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

Legal and Arbitration Risks

Losing the arbitration decision could allow CVX to terminate the merger, leading to potential negative impacts on share price.

Hess Business Overview & Revenue Model

Company Description

Hess Corporation, an exploration and production company, explores, develops, produces, purchases, transports, and sells crude oil, natural gas liquids (NGLs), and natural gas. The company operates in two segments, Exploration and Production, and Midstream. It conducts production operations primarily in the United States, Guyana, the Malaysia/Thailand Joint Development Area, and Malaysia; and exploration activities principally offshore Guyana, the U.S. Gulf of Mexico, and offshore Suriname and Canada. The company is also involved in gathering, compressing, and processing natural gas; fractionating NGLs; gathering, terminaling, loading, and transporting crude oil and NGL through rail car; and storing and terminaling propane, as well as providing water handling services primarily in the Bakken Shale plays in the Williston Basin area of North Dakota. As of December 31, 2021, it had total proved reserves of 1,309 million barrels of oil equivalent. The company was incorporated in 1920 and is headquartered in New York, New York.

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 demonstrates strong profitability with high margins and efficient cash flow management. Although there's a minor revenue decline, the company maintains a balanced capital structure and strong free cash flow.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.90B	10.51B	11.32B	7.47B	4.67B
Gross Profit	10.18B	8.25B	7.91B	4.54B	2.47B
EBITDA	7.25B	5.00B	5.74B	3.51B	-112.00M
Net Income	2.77B	1.38B	2.10B	559.00M	-3.09B
Balance Sheet
Total Assets	26.55B	24.01B	21.70B	20.52B	18.82B
Cash, Cash Equivalents and Short-Term Investments	1.17B	1.69B	2.49B	2.71B	1.74B
Total Debt	9.46B	9.60B	9.15B	9.14B	9.07B
Total Liabilities	14.55B	14.40B	13.20B	13.49B	12.49B
Stockholders Equity	11.22B	8.99B	7.86B	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	-1.62B	-591.00M	568.00M

Hess Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 148.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 148.97 is above the 20-day moving average (MA) of 144.85, above the 50-day MA of 138.48, and above the 200-day MA of 140.01, indicating a bullish trend. The MACD of 3.25 indicates Negative momentum. The RSI at 61.15 is Neutral, neither overbought nor oversold. The STOCH value of 58.18 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	80 Outperform	$64.23B	10.92	20.90%	4.03%	-0.23%	-14.82%
FANG	76 Outperform	$41.30B	8.65	14.26%	3.71%	47.89%	-7.87%
DVN	75 Outperform	$21.09B	7.47	20.88%	4.54%	12.06%	-16.37%
WDS	75 Outperform	$30.27B	8.36	10.23%	7.75%	-0.93%	115.30%
HES	74 Outperform	$46.07B	20.63	20.82%	1.34%	8.08%	10.59%
OXY	71 Outperform	$42.93B	17.65	9.43%	2.20%	1.35%	-33.30%
Sector *	52 Neutral	C$2.95B	-1.50	-3.48%	6.82%	2.89%	-49.51%

Hess Corporate Events

Hess Completes Merger, Delists from NYSE

Hess has terminated its $3.25 billion unsecured revolving credit facility, which was set to expire in 2027, following the consummation of a merger. As part of the merger, Hess has requested the delisting of its shares from the NYSE and has undergone significant leadership changes, with Bruce L. Niemeyer becoming the new President. The company’s certificate of incorporation and by-laws were also amended and restated.

The most recent analyst rating on (HES) stock is a Buy with a $184.00 price target. To see the full list of analyst forecasts on Hess stock, see the HES Stock Forecast page.

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.