Valued at a market cap of $42 billion, Hess Corporation (HES) is a leading global energy company. Headquartered in New York City, the company specializes in oil and natural gas exploration and production, operating across key regions worldwide. Hess is committed to leveraging advanced technologies and sustainable practices to deliver reliable energy solutions. Hess is set to release its Q4 earnings on Wednesday, Jan. 29. 

Ahead of the event, analysts expect the oil and gas exploration company to report a profit of $1.66 per share, up 1.8% from $1.63 per share in the year-ago quarter. The company has surpassed Wall Street’s EPS estimates in its last four quarterly reports.  

Its adjusted earnings of $2.14 per share for Q3 surpassed the consensus estimate by 13.8%. Hess Corporation’s Q3 earnings beat estimates due to higher production in Guyana and Bakken and increased commodity prices.

For fiscal 2024, analysts expect HES to report EPS of $9.74, up 92.9% from $5.05 in fiscal 2023.

Shares of Hess have declined 6.3% over the past 52 weeks, lagging behind both the S&P 500 Index’s ($SPX) 27.2% rise and the Energy Select Sector SPDR Fund’s (XLE) 2.8% return over the same period.

Hess Corporation has lagged the broader market and its peers as a result of weaker oil prices, lower production levels, and greater operational costs. Furthermore, difficulties in obtaining new exploration chances have hampered their success in recent years. 

Despite this, HES stock rose by over 1% on Jan. 2, driven by a rally in energy stocks as WTI crude oil prices reached a 2.5-month high. However, following its Q3 earnings release on Oct. 30, shares experienced a slight dip. The company reported $3.2 billion in revenue, reflecting a 12.7% year-over-year growth. Net production from its exploration and production (E&P) segment reached 461,000 barrels of oil equivalent per day (boepd), a 17% increase from 395,000 boepd in Q3 2023.

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The consensus opinion on HES stock is moderately bullish, with an overall “Moderate Buy” rating. Of the 15 analysts covering the stock, six advise a “Strong Buy” rating, and nine indicate a “Hold.”

HES’ average analyst price target is $166.77, suggesting a potential upside of 22.7% from the current levels.

On the date of publication, Rashmi Kumari 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. More news from Barchart