) announced that Terrence J. Checki, a Management Committee
member at the Federal Reserve Bank of New York, will be appointed
to the company's board of directors, effective May 1, 2014.
Checki, aged 68, will replace Hess' current director John
Krenicki Jr., who intends to resign from the board on the same
day. Checki began his career at the New York Fed in late 1967 and
was first named an executive vice president in 1995. During his
tenure, he held positions in corporate, financial supervision and
international affairs areas as well as in the Office of the
President. However, owing to his appointment in Hess, he would
step down from his post at the New York Fed.
Hess is undergoing a transition from an integrated oil and gas
company to a predominantly E&P entity, thereby shifting its
growth approach from the high-impact exploration to lower-risk
unconventionals and a smaller, more focused exploration
portfolio. It announced the closure of Port Reading, its New
Jersey refinery, which marked the company's complete exit from
the refining business.
Hess also aims to shed assets in Indonesia and Thailand as well
as its terminals, retail, energy marketing and trading businesses
in the downstream. The company also announced a share repurchase
plan of up to $4 billion, and a twofold increase in its annual
dividend - incepted in third quarter 2013 - to $1 a share. In
view of the global economic slowdown and new refining capacity
entering the world market, these aforesaid decisions will help
raise Hess' shareholder value.
In January, Hess reported adjusted fourth-quarter 2013 earnings
of 96 cents per share, lagging the Zacks Consensus Estimate of
$1.09 per share as well as the year-ago quarter earnings of $1.20
per share. The underperformance was mainly due to a drop in
Going forward, we believe that the company's strong exploration
upside in Ghana and continued improvement in Bakken productivity
hold a lot of promise. The company's asset divestiture program
along with significant progress in multi-year transformation is
also likely to reduce its financing needs.
Hess currently retains a Zacks Rank #3 (Hold), implying that it
is expected to perform in line with the broader U.S. equity
market over the next one to three months.
Meanwhile, one can consider better-ranked players in the energy
Patterson-UTI Energy Inc.
Helmerich & Payne Inc.
Warren Resources Inc.
). All the stocks sport a Zacks Rank #1 (Strong Buy).
HESS CORP (HES): Free Stock Analysis Report
HELMERICH&PAYNE (HP): Free Stock Analysis
PATTERSON-UTI (PTEN): Free Stock Analysis
WARREN RSRCS (WRES): Free Stock Analysis
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