) has increased its quarterly common stock dividend by 150% to 25
cents per share. The new dividend will be paid on Sep 30, 2013 to
shareholders of record as of Sep 16. The company had paid a
dividend of 10 cents in the previous quarter.
New York-based Hess Corp. is an integrated energy company engaged
in oil and gas exploration, production and refining as well as
Hess, however, remains on track with its transition to a pure
play E&P company while boosting shareholder value, much like
Marathon Oil Corporation
The company has already divested its subsidiary in Russia and its
interests in the Beryl area fields in the United Kingdom North
Sea, the Azeri-Chirag-Guneshli fields offshore Azerbaijan and the
Eagle Ford assets in Texas. In this regard, the company has
brought home $3.5 billion to date. The downstream businesses yet
to be divested consist of terminal, retail and trading
In an attempt to better manage its portfolio with respect to
resource availability, project development and its intricacy,
Hess intends to arrive at a 50:50 ratio between unconventional
and conventional assets by 2013 from the existing 80:20.
Currently, the ratio of the company's undrilled inventory is
40:60 between unconventional and conventional. The recent lease
in the Bakken and augmentation of Utica acreage are in sync with
its new strategy.
Going forward, we believe that the company's strong exploration
upside in Ghana and continued improvement in Bakken productivity
hold a lot of promise. This would help the company to
consistently deliver 5-8% annualized production growth in the
The company has also announced that it would resume share
repurchases under its pre-existing $4 billion authorization. All
these endeavors would undoubtedly add to shareholder value.
Hess shares currently retain a Zacks Rank #3, which translates
into a short-term Hold rating. While this indicates that the
stock will perform in-line with the broader market, there are
other stocks that are likely to outperform. These include
Carrizo Oil & Gas Inc.
), which looks attractive with a Zacks Rank #1 (Strong Buy).
CONOCOPHILLIPS (COP): Free Stock Analysis
CARRIZO OIL&GAS (CRZO): Free Stock Analysis
HESS CORP (HES): Free Stock Analysis Report
MARATHON OIL CP (MRO): Free Stock Analysis
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