Are Shares of Hess Due for a Move to the Upside?

Shares of Hess (NYSE:HES) have dropped over the year-to-date period on concerns about production issues at some of its shale properties in North Dakota, as well as a slowdown in oil drilling in the Gulf of Mexico in the wake of BP‘s (NYSE:BP) ongoing troubles there.  Hess’ presence in war-torn Libya has also caused some to look elsewhere for returns in the market.

However, Barron’s is reporting this morning that all of these troubles appear to be moving toward resolution, which should help prop up its stock price.  The article points out, in particular, that despite its lagging share price, an increase in the price of Brent crude should increase its revenues.  Further, a joint venture with Consol Energy (NYSE:CNX) to develop some shale deposits in Ohio, which are full of Brent crude, should do more to enhance Hess’ value.

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Following is some information about the share price performance of Hess and its competitors and partners:

  • Hess (NYSE:HES): The shares recently traded at $54.76, and have traded in a 52-week range of %50.42 to $87.40.  Its market capitalization is $18.61 billion.  About the company: Hess Corporation is a global integrated energy company. The Company explores for, produces, markets, and refines crude oil and natural gas. The Company operates in countries that include Algeria, Australia, Azerbaijan, Brazil, Denmark, Egypt, Equatorial Guinea, Gabon, Ghana, Indonesia, Libya, Malaysia, Norway, Peru, Russia, Thailand, the United Kingdom and the United States.
  • Exxon Mobil (NYSE:XOM): The shares recently traded at $72.07 and have traded in a 52-week range of $61.27 to $88.23.  Its market capitalization is $350.41 billion.  About the company: Exxon Mobil Corporation operates petroleum and petrochemicals businesses on a worldwide basis. The Company’s operations include exploration and production of oil and gas, electric power generation, and coal and minerals operations. Exxon Mobil also manufactures and markets fuels, lubricants, and chemicals.
  • BP (NYSE:BP): The shares recently traded at $36.43, and have traded in a 52-week range of $35.10 to $49.50.  Its market capitalization is $115.01 billion.  About the company:  BP plc is an oil and petrochemicals company. The Company explores for and produces oil and natural gas, refines, markets, and supplies petroleum products, generates solar energy, and manufactures and markets chemicals. BP’s chemicals include terephthalic acid, acetic acid, acrylonitrile, ethylene and polyethylene.
  • Chesapeake Energy (NYSE:CHK): The shares recently traded at $27.27 and have traded in a 52-week range of $20.97 to $35.95 and its market capitalization is $18.02 billion.  About the company: Chesapeake Energy Corporation produces oil and natural gas. The Company’s operations are focused on discovering, developing and acquiring conventional and unconventional natural gas reserves onshore in the United States.
  • Chevron (NYSE:CVX): The shares recently traded at $91.74 and have traded in a 52-week range of $80.33 to $109.94.  Its market capitalization is $183.75 billion.  About the company: Chevron Corporation is an integrated energy company with operations in countries located around the world. The Company produces and transports crude oil and natural gas. Chevron also refines, markets, and distributes fuels as well as is involved in chemical operations, mining operations, power generation and energy services.
  • Consol Energy (NYSE:CNX): The shares recently traded at $35.62 and have traded in a 52-week range of $33.26 to $56.32.  Its market capitalization is $8.08 billion.  About the company: CONSOL Energy Inc. produces high-BTU bituminous coal, and also coalbed methane gas. The Company primarily produces pipeline-quality coalbed methane gas from coal properties in the Northern and the Central Appalachian basin, other western basins, and oil and gas from properties in the Appalachian and Illinois Basins.

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