Earnings Preview: Hess Corp.

| About: Hess Corporation (HES)

Hess Corp. (NYSE:HES) is expected to report Q2 earnings before the market open on Wednesday, July 25 with a conference call scheduled for 10:00 am ET.


Analysts are looking for EPS of $1.38 on revenue of $8.71B. The consensus range is $1.23-$1.53 for EPS, and $5.18B-$10.96B for revenue, according to First Call. After reporting better-than-expected EPS and revenue in Q1, Hess announced that Bakken production is below prior guidance and suggested it may have to raise its FY12 CapEx higher than its original $6.8B guidance. Investors will look to hear any updates on the production volume at the Bakken shale. They will also look for additional details on the sale of U.K. assets to Shell (NYSE:RDS.A) and its agreement with Petronas to develop the North Malay Basin.

Analyst Views

Hess was downgraded to Equal Weight at Barclays, to Hold at Argus, and to Neutral at JPMorgan and Credit Suisse due to the lower Bakken production volumes. The company, however, was upgraded to Buy at Tudor Pickering and CitiGroup based on expectations that Hess's capital intensity is coming to an end.