With a market cap of $42.8 billion, Hess Corporation (HES) is a global energy company engaged in the exploration, production, and marketing of crude oil and natural gas. Headquartered in New York City, Hess operates primarily in the upstream sector, focusing on oil and gas exploration and production activities in locations such as the U.S. Gulf of Mexico, offshore Guyana, and several international markets.
Recent Performance: A Mixed Bag
Hess Corporation’s shares have struggled over the past 52 weeks, decreasing 4.9% compared to a 20.9% increase in the S&P 500 Index ($SPX). In a brighter turn, HES has seen a 4.4% gain year-to-date in 2025, which is better than the S&P 500’s 1.9% increase during the same period.
The company has also underperformed compared to the Energy Select Sector SPDR Fund’s (XLE) 5.6% gain over the past year. However, HES has outperformed the ETF’s 3% rise year-to-date in 2025.
Quarterly Insights and Future Projections
On January 29, 2025, HES announced its fourth-quarter estimated results, showing slight share price growth. The company’s net income stood at $1.76 per share with revenues reaching $3.2 billion, both exceeding analyst expectations. Notably, oil and gas net production rose by 18% year-over-year, totaling 495,000 barrels of oil equivalent per day (boepd), largely due to expansion in Guyana and Bakken operations.
For the first quarter of 2025, Hess anticipates net production to average between 465,000 and 475,000 boepd, impacted by maintenance activities in Guyana and potential weather challenges in the Bakken region.
Analyst Outlook: Cautiously Positive
Looking ahead, analysts expect HES’ earnings per share (EPS) to decline by 20.6% year-over-year, reaching $7.69 for the current fiscal year ending in December 2025. Nonetheless, the company has shown a robust earnings surprise history, having beaten consensus estimates in the last four quarters.
The consensus rating from analysts on Hess Corporation is generally optimistic, with a “Moderate Buy” rating overall. Out of 15 analysts following the stock, there are six “Strong Buys” and nine “Holds.”
Recent Upgrades and Future Anticipations
This current outlook is slightly more positive compared to two months ago, with five “Strong Buy” ratings now present. On December 9, Wells Fargo & Company (WFC) analyst Roger Read upgraded HES from “Equal-Weight” to “Overweight,” elevating the price target from $151 to $193. While current oil price forecasts are moderate, Read is optimistic about positive returns for the oil and gas sector in 2025, citing spending discipline.
The average price target stands at $169.15, indicating a potential upside of 21.8% from Hess’ current price. The highest target of $199 suggests a premium of 43.3% compared to current levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
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