Fri, Mar. 13, 3:58 PM
- Whiting Petroleum (WLL +3.1%) spikes on a Bloomberg report suggesting Exxon Mobil (XOM -0.2%) could be interested in the company; trading is now halted for volatility.
- Continental Resources (CLR -4.8%), Hess (HES +0.4%) and Statoil (STO +1.4%) also are reportedly looking at WLL, according to the report, and WLL has set up a data room for potential buyers to evaluate the company’s financial information and asked them to submit bids next week.
- WLL is the largest producer in North Dakota’s Bakken Shale, and the four rumored suitors already are among the 10 largest holders of acreage in the play.
- WLL had been down all day on an earlier report that it was considering selling off pieces rather than the whole company.
Mon, Mar. 9, 3:35 PM
- Analysts are mostly positive on Whiting Petroleum (WLL +10.8%) after WSJ's report that the company is looking to sell itself, particularly seeking out Statoil (STO -1.7%) to make a bid.
- WLL is a prime takeover candidate, given its attempt to sell itself in 2012, BofA Merrill says as it maintains its Buy rating and $45 price target, adding that the scale of WLL's assets has increased significantly because of its Kodiak acquisition and could attract large energy companies with strong balance sheets such as Exxon (NYSE:XOM), Chevron (NYSE:CVX) and Hess (NYSE:HES).
- WLL could get a strong price because of its rich assets in the Bakken Shale; on the other hand, investors have become particularly concerned about E&P companies that are heavily focused on a single region, as WLL is in the Bakken.
- UBS analyst Betty Jiang points out some hurdles to a potential deal, including a wide price differential between buyers and sellers, and potential acquirers' apparent preference for buying land in areas that are cheaper than the Bakken.
Tue, Feb. 3, 2:49 PM
- Veteran energy analyst Christopher Eades recommends a half-dozen safe oil majors, oilfield services firms and transport MLPs as the best bets to ride out the current storm - Halliburton (HAL +4%), Pioneer Natural Resources (PXD +2.2%), Hess (HES +3.2%), Occidental Petroleum (OXY +2.1%), Enterprise Products Partners (EPD +1.4%) and Plains All American Pipeline (PAA +2.4%) - all companies with strong balance sheets, strong growth prospects, and healthy yield levels with no dividend cuts on the table.
- Eades says he is "more enthusiastic about MLPs than I've been in some time," as the group has essentially given up two years’ worth of gains yet cash flow fundamentals have been largely unchanged - "to me, that sounds like a good opportunity, particularly in a world still so starved for yield."
Wed, Jan. 28, 9:18 AM
- Hess (NYSE:HES) -1.7% premarket as Q4 earnings fall short of Wall Street expectations, as lower gas prices dragged down earnings despite increased production.
- Q4 oil and gas production averaged 362K boe/day, up 18% Y/Y, with Bakken output of 102K boe/day representing a ~50% Y/Y increase.
- HES expects overall FY 2015 production to average ~350K boe/day, up ~10% Y/Y, driven by a full year of production from the Tubular Bells field in the Gulf of Mexico following first production in late 2014.
- HES says it plans to reduce its spending in the Bakken oil patch by 18% Y/Y to $1.8B, with technology as well as lower oil prices factoring into the decision; the company expects to drill almost as many wells as it did last year while running only half of the drilling rigs.
- HES announced Monday it was cutting its overall capex budget for 2015 by 16% to $4.7B.
Dec. 3, 2014, 11:32 AM
- The energy sector (XLE +1.5%) continues its momentum from yesterday, leading the way again as the best performing sector in early trading with crude oil rising 1.2% so far today and reports that U.S. well permits fell 40% last month.
- Top performers include Clayton Williams (CWEI +7.7%), Transocean Partners (RIGP +10.6%), Gaslog (GLOG +13.8%) and Energy XXI (EXXI +15.7%).
- Other leading energy names are showing stronger recoveries as they clear last Friday's bearish gap zone: XOM +0.2%, CVX +0.4%, COP +2.5%, OXY +2.5%, DVN +2.9%, EOG +2.5%, HES +2.2%, MUR +1.5%, NBL +2.3%, PXD +4.2%, SU +3%, CNQ +1.9%.
- Some analysts warn that the worst may not be over, however, as much of the advance is being driven by investors repurchasing ETFs they used to make short bets; investors also could opt to sell oil shares at a loss in coming weeks to reduce tax burdens.
Nov. 17, 2014, 10:22 AM
- Hess (HES -2.3%) says production has started from the Tubular Bells field located in the Mississippi Canyon area of the deepwater Gulf of Mexico.
- Following a ramp-up period, Tubular Bells is expected to deliver gross production of ~50K boe/day from three producing wells by year end.
- Hess says Tubular Bells is a major accomplishment that could pay out over decades; despite lower oil prices, the success encouraged Hess and three other oil companies last month to sanction the Stampede deepwater Gulf development.
- Hess is the operator and holds a ~57% interest in the field, with Chevron (CVX -0.7%) claiming the remaining ~43%.
Nov. 10, 2014, 3:19 PM
- Hess (HES -1.7%) raises its five-year production growth forecast to 6%-10% from a previous outlook of 5%-8% growth, thanks to its Bakken shale segment and strong growth in offshore assets.
- Hess increases its Bakken net peak production guidance by 17% to 175K boe/day by 2020, with plans to add another 1,000 well locations to a total of more than 4,000.
- In its first guidance for Utica shale, Hess predicts net peak production to reach ~40K boe/day by 2020, with ~500 well locations.
- Significant production growth and free cash generation are forecast from Hess' offshore assets, particularly in the deepwater Gulf of Mexico with the Stampede field sanctioned in October for first oil in 2018
- It also expects significant production growth and free cash generation from offshore assets, particularly in the Gulf of Mexico.
Oct. 29, 2014, 8:57 AM
- Hess (NYSE:HES) +1.9% premarket after reporting better than expected Q3 earnings and revenues on higher production and asset sales, though results were hit by lower crude oil prices.
- Q3 oil and gas production totaled 318K boe/day, up 2.6% Y/Y; Bakken oil and gas production increased 21% to 86K boe/day due to continued development activities and the completion of the Tioga gas plant expansion project, while well costs were reduced by 8% to an average of $7.2M per operated well.
- Hess says the $2.8B sale of its retail business in September added $602M to its earnings in the quarter.
- Q3 capex totaled $1.42B, down from $1.5B in the prior-year quarter.
Oct. 29, 2014, 7:36 AM
Oct. 27, 2014, 2:54 PM
- Oaktree Capital (OAK +0.7%) agrees to purchase Hess' (HES -2.1%) 50% share of energy trader HETCO for an undisclosed amount, and says it will inject $500M to fund expansion into new commodity markets.
- HES launched the sale of Hess Energy Trading more than a year and a half ago after investors urged the company to divest the unit, saying it weighed on the company's balance sheet.
- HES has been shedding assets since 2013, when activist shareholders including Elliott Management forced a reorganization of the board.
Oct. 9, 2014, 3:25 PM
- Crushed by relentless anxiety about oversupply and weakening global demand, Nymex crude oil futures closed down $1.54 at $85.76/bbl, their lowest close since Dec. 2012, while Brent crude fell below $90/bbl for the first time in more than two years.
- Including today's losses, WTI crude is down 6.2% since the start of the month and Brent has surrendered ~5%.
- In the face of surging output, a move in WTI below its 10-year average at $82 is not out of the realm of possibility, Brown Brothers Harriman says, adding that "a break of $73/barrel could send WTI toward $64, which corresponds with the 2010 low."
- Among big oil names so far today: APC -6.3%, LINE -4.6%, EPD -3.8%, DVN -3.8%, MRO -3.6%, HES -3.8%, KMI -3.7%, TOT -3.5%, STO -3.3%, RDS.A -3.1%, OXY -3%, KMP -3%, XOM -2.6%, COP -2.6%, MUR -2.6%, CVX -2.5%, BP -2.4%.
- ETFs: USO, XLE, OIL, UCO, ERX, VDE, OIH, SCO, ERY, XOP, DIG, BNO, DTO, DBO, DUG, IYE, XES, IEO, CRUD, IEZ, PXE, USL, UWTI, PXJ, FENY, DNO, DWTI, RYE, FXN, SZO, OLO, DDG, OLEM, TWTI
Oct. 9, 2014, 9:56 AM
- Global oil producers open broadly lower as oil prices continue to slide on concerns about high supplies and weak global economic growth (also): RDS.A -2.7%, STO -2.7%, TOT -2.5%, HES -2%, APC -1.7%, BP -1.6%, CVX -1.5%, COP -1%, XOM -0.8%.
- Brent prices slump to $91/bbl, approaching two-year intraday lows, and Nymex crude tumbles to $86.67/bbl to an 18-month intraday low.
- The EIA said yesterday that U.S. crude supplies rose by a more than expected 5% last week, while gasoline and distillate inventories unexpectedly grew as well.
- Barclays is cutting its oil price forecasts: It now sees U.S. crude averaging $85/bbl in Q4 and $89 in 2015, down from previous estimates of $98 in Q4 and $100 next year, and Brent crude averaging $93/bbl in Q4 and $96 in 2015, down from a respective $106 and $107 previously.
- ETFs: USO, XLE, OIL, UCO, ERX, VDE, OIH, SCO, ERY, XOP, DIG, BNO, DTO, DBO, DUG, IYE, IEO, CRUD, PXE, USL, UWTI, PXJ, FENY, DNO, DWTI, RYE, FXN, SZO, OLO, DDG, OLEM, TWTI
Jul. 30, 2014, 8:26 AM
- Hess (NYSE:HES) +5.1% premarket after reporting better than expected Q2 earnings and revenues, even as Y/Y results fell after it sold off operations to focus on core exploration and production projects.
- Q2 oil and gas production totaled 319K boe/day, 6.5% lower than 341K boe/day in the year-ago quarter.
- CEO John Hess says the company is confident it can deliver 5%-8% annual production growth.
- HES also announces plans to form an MLP comprising its pipeline and storage assets in North Dakota's Bakken oil shale field, and expects to file with the SEC in Q4.
Jul. 14, 2014, 2:21 PM
- Whiting Petroleum's (WLL +7.4%) $6B buyout of Kodiak Oil & Gas (KOG +5.1%) is renewing investor attention on independent energy firms with operations in the Bakken Shale, especially those significantly owned by hedge funds; Paulson & Co. is the single biggest owner of KOG stock, with just under 10% of shares outstanding as of the last filing date.
- While many of the largest Bakken producers are huge companies or parts of huge companies - Hess (NYSE:HES), EOG, Statoil (NYSE:STO), Marathon Oil (NYSE:MRO), XTO Energy (NYSE:XOM) - a few small and mid-cap independent players show hedge fund interest, CNBC's Brian Sullivan writes.
- The single biggest holder of Oasis Petroleum (OAS +0.5%) also is John Paulson's hedge fund, which owns 9.9M shares (~9.8% of shares outstanding), Jana Partners owns 16M-plus shares in QEP Resources (QEP +1.4%), and WPX Energy (WPX +1.1%) has substantial hedge fund ownership.
May. 22, 2014, 7:38 AM
- Marathon Petroleum (MPC) agrees to acquire Hess' (HES) retail business, including all of Hess' retail locations and transport operations, for $2.6B.
- MPC says the addition of Hess' stores to its Speedway network of sites will broaden its geographic footprint and position Speedway as the premier convenience store operator in the eastern U.S.; the combined business will have 2013 pro forma revenues of more than $27B, 6.2B gallons of annual fuel sales, and $4.8B of annual merchandise sales at more than 2,700 retail locations.
- Hess says the sale continues its strategic transformation into a pure-play E&P company; proceeds from the sale will be used for additional share repurchases, and existing share repurchase authorization is increased to $6.5B from $4B.
- HES +3.5% premarket.
Jan. 6, 2014, 12:27 PM
- Bonanza Creek Energy (BCEI +3.8%) is upgraded to Buy from Neutral and Hess (HES -0.7%) is cut to Neutral from Buy at Mizuho on valuation as part of the firm's broader sector outlook, which sees crude prices remaining above breakeven for key basins despite headwinds.
- The firm expects further efficiency gains as key players in the Bakken (HES), Permian (APA, APC), Eagle Ford (MRO, APC) and DJ Basin (APC, NBL, PDCE, SYRG, BCEI) continue to hone skills; its top picks going into 2014 are APA, Kosmos (KOS) and, on the riskier side, APC.
- With APA, the firm sees a continued turnaround to a leaner, shareholder-focused E&P with material catalysts; with KOS, a seasoned explorer with big drilling upside alongside cash flow generation; with APC, market caution until a Tronox damages number is revealed but rebounding given solid assets and liquidity.
HES vs. ETF Alternatives
Hess Corp is a Exploration and Production (E&P) company that develops, produces, purchases, transports and sells crude oil and natural gas. The Company operates in two segments: E&P and Retail Marketing.
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