Latest news with #HessCorporation
Arab Times
a day ago
- Business
- Arab Times
Guyana poised for energy boom amid legal dispute
TWO of the biggest American oil companies, ExxonMobil and Chevron, are locked in a legal battle over an oilfield in Guyana. Both companies are industry giants and pioneers with a presence in oil fields worldwide. They have their hands in every oil field, regardless of location. Oil is their bread and butter. They are the biggest in the field with unmatched expertise. Today, however, they find themselves in a legal battle in a London court over the ownership of a massive oil project, estimated to hold over$1 trillion in reserves. The outcome of this case carries huge implications for the global oil industry. The two U.S. oil supermajors are battling over a 30 percent stake in a major oil field in Guyana, which is currently owned by Hess Corporation, a U.S. energy company that agreed to a $54 billion takeover by Chevron in 2023. ExxonMobil, which already owns approximately 45 percent of the same field, claims it holds a 'first right of refusal' under its existing agreement. This is likely to be a long legal battle over a valuable oil reserve, which is what every oil company wants. The fight between the world's two biggest oil firms could shape the future of the industry. Whoever wins will strengthen their position in the global market. For ExxonMobil, the most valuable American oil company, winning could help it stay on top. The two oil companies are no match for national oil companies in terms of oil reserves, nor do they possess as much oil as those state-owned companies. However, they do have the know-how, the experience, and the technology to operate in almost any oil field in the world. They are always in desperate need of more oil reserves and will go anywhere, to any place, in search of a few barrels of black gold. It is their bread and butter. For Guyana, with its small population and clean environment, there is no real need for the polluting effects of black oil to disrupt its natural surroundings. However, the financial rewards are too great to ignore, offering the country a chance to place itself on the global energy map. With oil reserves exceeding 12 billion barrels, and more expansion on the horizon, Guyana stands to gain immensely. The current legal battle between the two oil giants is over a prize worth more than $1 trillion. In the end, Chevron has more at stake and a greater need to win, as it aims to boost its oil reserves to better compete with the world's leading oil company, ExxonMobil. It is a matter of competition and narrowing the gap with its top rival. Without a doubt, this is a case well worth fighting for.
Yahoo
3 days ago
- Business
- Yahoo
Occidental vs. Hess: Which Energy Stock Deserves a Spot in Your Folio?
The companies belonging to the Zacks Oil & Gas – Integrated - United States industry offer a strong investment case based on energy security, solid infrastructure, and supportive regulations. The U.S. shale boom has improved cost efficiency, scalable production, and access to top-tier pipelines and refineries, boosting profitability and resilience. U.S. companies are well-positioned to meet long-term domestic natural gas demand, driven by power generation and coal-to-gas transition, as well as rising LNG companies' selective overseas production activities offer valuable diversification and access to higher-margin barrels in specific regions, often through long-term production sharing agreements. This global presence helps mitigate risks from localized downturns or regulatory changes while enabling them to capitalize on growing demand in emerging markets. Amid such a backdrop, let us focus on Occidental Petroleum OXY and Hess Corporation HES as they are navigating through industry challenges to provide strong returns to Petroleum is a strong investment opportunity, combining steady cash flow from its Permian Basin and global oil and gas assets with a growing focus on carbon management solutions. Supported by Berkshire Hathaway's backing, the company offers long-term value through its balanced approach to traditional energy production and scalable low-carbon Corporation offers a compelling investment opportunity, underpinned by its strategic assets and commitment to sustainable growth. It is also proactively transitioning towards sustainable energy and has invested in renewable energy projects. These initiatives align with its goal to reduce greenhouse gas emissions and diversify its energy portfolio. HESS is undergoing a major transition with its pending acquisition by Chevron, which is currently under arbitration due to disputes over its Guyana stocks mentioned above are the key operators in the Oil and Gas industry space. Let us dive deeper and closely compare the fundamentals of the two stocks to determine which is a better investment option for investors. The Zacks Consensus Estimate for Occidental Petroleum's earnings indicates a year-over-year decline of 32.66% for 2025 and growth of 14.38% for 2026. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Hess Corporation's earnings indicates a year-over-year decline of 38.53% for 2025 and growth of 20.14% for 2026. Image Source: Zacks Investment Research Dividends are regular payments made by a company to its shareholders and represent a direct way for investors to earn a return on their investment. They are an important indicator of a company's financial health and stability, often signaling strong cash flow and consistent the dividend yield for Occidental Petroleum is 2.33%, while the same for Hess Corporation is 1.53%. The dividend yield of OXY is higher than the S&P 500's yield of 1.6%. ROE is an essential financial indicator that evaluates a company's efficiency in generating profits from the equity invested by its shareholders. It demonstrates how well management is utilizing the capital provided to increase earnings and deliver value. OXY's current ROE is 16.6% compared with HES' ROE of 21.78%, the industry's ROE of 16.94%. The Zacks Oil & Energy sector is a capital-intensive one, and huge investments are required at regular intervals to upgrade, maintain and expand operations. The usage of new evolving technology also requires investments. Occidental Petroleum's debt-to-capital currently stands at 40.64% compared with Hess Corporation's debt-to-capital of 41.48%. Occidental Petroleum appears to be cheaper compared with Hess Corporation on trailing 12-month Enterprise Value/Earnings before Interest Tax Depreciation and Amortization (EV/EBITDA).OXY is currently trading at 4.87X, while HES is trading at 7.23X compared with its sector's 4.59X. Last month, shares of Occidental Petroleum gained 4.5% compared with Hess Corporation's rally of 2.1%. Image Source: Zacks Investment Research Occidental Petroleum's persistent focus on Permian resources has been beneficial for the company. Nearly 83% of Occidental's production comes from its domestic assets. Stable international operation and ongoing reduction of debt will continue to act as a operations, particularly assets in Guyana, are a major source of oil and gas production for Hess Corporation. Based on the above discussion, we will suggest OXY, which carries a Zacks Rank #3 (Hold), should be in your oil and gas portfolio and avoid Hess Corporation, carrying a Zacks Rank #5 (Strong Sell) for the time can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hess Corporation (HES) : Free Stock Analysis Report Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Globe and Mail
19-05-2025
- Business
- Globe and Mail
OXY Trading at a Premium at 4.99X: Time to Hold or Sell the Stock?
Occidental Petroleum Corporation 's OXY shares are currently trading at a premium compared to the Zacks Oil and Gas - Integrated - United States industry. OXY's current trailing 12-month Enterprise Value/Earnings before Interest, Tax, Depreciation and Amortization (EV/EBITDA) is 4.99X compared with the industry average of 4.76X. It indicates that the company is presently marginally overvalued compared to its industry. Occidental, being a low-cost operator and possessing high-quality assets in different locations across the globe, has a competitive advantage over its peers. Yet, as of Dec. 31, 2024, there were no active commodity hedges in place, so if commodity prices drop substantially, it can adversely impact Occidental's performance. OXY Stock Trading at a Premium Another company operating in this space, Hess Corporation HES, is trading at an EV/EBITDA of 7.41X, at a premium compared to its industry. Occidental's shares have gained 10.3% last month, outperforming its industry's rally of 8.4%. Price Performance (One Month) Should you consider adding OXY stock to your portfolio only based on positive price movements? Let's delve deeper and find out the factors that can help investors decide whether it is a good entry point to add OXY stock to their portfolio. Factors Contributing Toward OXY Stock's Stable Performance Occidental continues to gain from its strategic acquisition, which boosts its production volumes and the top line. The acquisition of CrownRock assets boosted OXY's production volumes and lowered its well operating costs. Occidental's primary objective is to enhance its balance sheet and reduce capital servicing costs. In 2024, the company successfully met its short-term debt reduction goal of $4.5 billion and plans to further decrease its outstanding debt by mid-2027 using free cash flow and proceeds from non-core asset divestitures. The company's emphasis on developing its Permian Basin resources has proven advantageous, with strong performance reported in this core area. For 2025, Occidental anticipates total production to range between 1,390 and 1,440 thousand barrels of oil equivalent per day (Mboe/d), with the Permian region contributing approximately 760–786 Mboe/d. International production for 2025 is projected to fall between 226 and 236 Mboe/d. The company is employing advanced seismic imaging techniques to discover new oil and gas reserves. These seismic surveys are essential for exploration, providing more precise insights into potential drilling locations compared to traditional methods. As a low-cost operator with high-quality assets globally, Occidental holds a competitive edge over many of its industry peers. Its disciplined capital investments have strengthened its infrastructure, with over $7 billion invested in 2024. The company plans to invest between $7.2 billion and $7.4 billion in 2025, significantly more than Hess Corporation's planned $4.5 billion investment in the same year. Occidental also continues to benefit from strategic acquisitions that enhance production capacity and revenues. The acquisition of CrownRock assets, for instance, has not only increased production volumes but also reduced per-well operating costs. OXY Stock's Earnings Surprise History The stable performance of the company allowed it to surpass earnings estimates in each of the last four reported quarters, the average earnings surprise being 24.34%. Another stock, ConocoPhillips COP, operating in the space, surpassed earnings estimates in three out of the last four quarters and missed expectations in a quarter, resulting in an average positive surprise of 1.94%. Headwind for OXY Stock Occidental's operational performance is influenced by changes in demand and the volatility of both global and local commodity prices. The company remains vulnerable to fluctuations in the commodity markets, and as of Dec. 31, 2024, it had no active commodity hedging strategies in place. A significant decline in commodity prices from current levels could negatively affect Occidental's financial performance. Occidental's Earnings Estimates are Going Down The Zacks Consensus Estimate for Occidental's 2025 and 2026 earnings per share has moved down 30.06% and 29.06%, respectively, in the past 60 days. Occidental's ROE Lower Than the Industry Return on equity, a profitability measure, reflects how effectively a company utilizes its shareholders' funds to generate income. The trailing 12-month ROE of OXY is 16.89%, a tad lower than its industry's 16.6%. Like Occidental, ConocoPhillips' ROE is also marginally lower than its industry and OXY at 16.54%. Wrapping Up Occidental's efforts to reduce debt, along with the strength of its domestic and international operations and the positive impact of recent acquisitions, are expected to support its performance. Yet, the company faces challenges from volatile commodity prices and returns that currently lag behind industry averages. Declining earnings estimates are also a concern. Despite the headwinds, it is advisable to keep this Zacks Rank #3 (Hold) stock in your portfolio, given its strong domestic operations and exposure to the prolific Permian Basin. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.0% per year. So be sure to give these hand picked 7 your immediate attention. See them now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ConocoPhillips (COP): Free Stock Analysis Report Hess Corporation (HES): Free Stock Analysis Report
Yahoo
13-05-2025
- Business
- Yahoo
Hess Corporation (HES): Among This Billionaire's Stock Picks with Huge Upside Potential
We recently published a list of . In this article, we are going to take a look at where Hess Corporation (NYSE:HES) stands against other billionaire Glenn Russell Dubin's stock picks with huge upside potential. Glenn Russell Dubin is one of the industry's most experienced hedge fund managers, best known as the co-founder of Highbridge Capital Management, a multi-strategy investment business he founded with Henry Swieca in 1992. Before being bought by JPMorgan Chase in 2004, the firm quickly rose to prominence as one of Wall Street's most sophisticated hedge funds. As of March 2024, Highbridge Capital manages more than $7.1 billion in discretionary assets and has a focused exposure to growth industries. Dubin has long been involved in basic research and multi-asset investing through Highbridge and his private investment firm, Dubin & Company. His portfolio demonstrates a high-conviction strategy, with the top ten holdings accounting for more than 40% of reported 13F equities. Dubin's top stock picks frequently coincide with broader macroeconomic themes, such as monetary easing, capital market expansion, and industrial revival, making them excellent bets for long-term investors looking for asymmetric risk-reward ratios. The background for these investments is especially attractive. Financial markets rebounded strongly in 2024, with financial equities up more than 30% by the end of the year, owing to lower inflation, lower interest rates, and strong investor sentiment. Even if the United States' GDP growth is expected to fall from 2.7% in 2024 to 1.5% in 2025, hopes of Fed rate cuts and a more stable regulatory environment are keeping financial industry momentum alive. Meanwhile, growing corporate refinancing needs and record-high consumer debt are steering capital into private credit and asset-backed lending—areas where Highbridge has traditionally excelled. The industrial sector is also experiencing a significant revival, with a 26% increase in 2024 driven by demand for reshored manufacturing, clean energy buildout, and infrastructure construction. With only a quarter of the $1.9 trillion in planned North American infrastructure projects underway, there is still enormous growth potential. At the same time, reduced interest rates are expected to boost housing activity, and aerospace demand is expected to rise as airlines revamp their aged fleets. These macroeconomic drivers continue to provide appealing entry points for cyclical names with long-term upside. Tariff concerns have increased volatility in the equity markets, particularly in light of proposed higher tariffs on steel and aluminum imports. However, other investors see this as a temporary disruption that could eventually benefit domestic manufacturers and capital goods industries. In reality, leading market commentators argue that predictions of a fresh wave of trade protectionism are exaggerated, with underlying fundamentals remaining strong across major value industries. In that scenario, this may be a good time to follow experienced managers such as Glenn Dubin. As markets reset and valuations in banking and industrial stocks decline from their 2024 highs, the opportunity to purchase into structurally good companies at a discount is wide open. Highbridge Capital's recent bets indicate trust in sectors that are not only rebounding but evolving, and these top stock picks might provide considerable upside as the market rebalances in 2025. To compile a list of Billionaire Glenn Russell Dubin's 10 Stock Picks with Huge Upside Potential, we studied Greenlight Capital's Q4 2024 13F filings to identify billionaire Glenn Russell Dubin's stock picks with the most upside potential. We evaluated the firms in ascending order of upside potential. These stocks are also popular with elite hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). An oil tanker sailing across the horizon, conveying the importance of crude oil transportation for the company. Number of Hedge Fund Holders: 92 Upside Potential: 27.40% Hess Corporation (NYSE:HES) is an exploration and production company that develops, produces, and sells crude oil, natural gas liquids, and natural gas. The company is principally active in the United States, Guyana, and Malaysia, with significant offshore exploration activity in the Gulf of Mexico and Guyana. Its two main business sectors are exploration and production (E&P) and midstream. For the first quarter of 2025, which ended March 31, Hess Corporation (NYSE:HES) reported net income of $430 million, or $1.39 per share, a considerable decrease from $972 million, or $3.16 per share, in Q1 2024. On an adjusted basis, the company earned $559 million in net income, or $1.81 per share. The reduction in earnings was mostly caused by lower realized oil prices, which averaged $71.22 per barrel in Q1 2025, compared to $80.06 in Q1 2024. Despite this, Hess' net output remained stable at 476,000 barrels of oil equivalent per day (boepd) in Q1 2025 and Q1 2024. Hess Corporation's (NYSE:HES) Bakken assets experienced higher production of 195,000 boepd in Q1 2025, up from 190,000 boepd in the previous year's quarter. Offshore production in the Gulf of Mexico and Guyana also demonstrated resiliency, with the Stabroek Block delivering 183,000 bopd in Q1 2025, a modest decrease from 190,000 bopd in Q1 2024. The company expects production to range between 480,000 and 490,000 boepd in Q2 2025. The Midstream segment's net income increased to $70 million in Q1 2025 from $67 million the previous year. Hess' Yellowtail project in Guyana is set to begin operations in Q3 2025, with a production capacity of 250,000 barrels of oil per day (bopd). Given these encouraging developments, including increased production capacity and continuing projects such as Yellowtail, Hess is poised for significant future growth, ranking among the top stocks with excellent upside potential. Glen Russell's stake in Hess Corporation's (NYSE:HES) was worth $77 million, which accounted for 2.88% of his portfolio at the end of Q4 2024 Overall, HES ranks 10th on our list of billionaire Glenn Russell Dubin's stock picks with huge upside potential. While we acknowledge the potential of HES, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than HES but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at . Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Business
- Yahoo
Hess Corporation (HES): Among This Billionaire's Stock Picks with Huge Upside Potential
We recently published a list of . In this article, we are going to take a look at where Hess Corporation (NYSE:HES) stands against other billionaire Glenn Russell Dubin's stock picks with huge upside potential. Glenn Russell Dubin is one of the industry's most experienced hedge fund managers, best known as the co-founder of Highbridge Capital Management, a multi-strategy investment business he founded with Henry Swieca in 1992. Before being bought by JPMorgan Chase in 2004, the firm quickly rose to prominence as one of Wall Street's most sophisticated hedge funds. As of March 2024, Highbridge Capital manages more than $7.1 billion in discretionary assets and has a focused exposure to growth industries. Dubin has long been involved in basic research and multi-asset investing through Highbridge and his private investment firm, Dubin & Company. His portfolio demonstrates a high-conviction strategy, with the top ten holdings accounting for more than 40% of reported 13F equities. Dubin's top stock picks frequently coincide with broader macroeconomic themes, such as monetary easing, capital market expansion, and industrial revival, making them excellent bets for long-term investors looking for asymmetric risk-reward ratios. The background for these investments is especially attractive. Financial markets rebounded strongly in 2024, with financial equities up more than 30% by the end of the year, owing to lower inflation, lower interest rates, and strong investor sentiment. Even if the United States' GDP growth is expected to fall from 2.7% in 2024 to 1.5% in 2025, hopes of Fed rate cuts and a more stable regulatory environment are keeping financial industry momentum alive. Meanwhile, growing corporate refinancing needs and record-high consumer debt are steering capital into private credit and asset-backed lending—areas where Highbridge has traditionally excelled. The industrial sector is also experiencing a significant revival, with a 26% increase in 2024 driven by demand for reshored manufacturing, clean energy buildout, and infrastructure construction. With only a quarter of the $1.9 trillion in planned North American infrastructure projects underway, there is still enormous growth potential. At the same time, reduced interest rates are expected to boost housing activity, and aerospace demand is expected to rise as airlines revamp their aged fleets. These macroeconomic drivers continue to provide appealing entry points for cyclical names with long-term upside. Tariff concerns have increased volatility in the equity markets, particularly in light of proposed higher tariffs on steel and aluminum imports. However, other investors see this as a temporary disruption that could eventually benefit domestic manufacturers and capital goods industries. In reality, leading market commentators argue that predictions of a fresh wave of trade protectionism are exaggerated, with underlying fundamentals remaining strong across major value industries. In that scenario, this may be a good time to follow experienced managers such as Glenn Dubin. As markets reset and valuations in banking and industrial stocks decline from their 2024 highs, the opportunity to purchase into structurally good companies at a discount is wide open. Highbridge Capital's recent bets indicate trust in sectors that are not only rebounding but evolving, and these top stock picks might provide considerable upside as the market rebalances in 2025. To compile a list of Billionaire Glenn Russell Dubin's 10 Stock Picks with Huge Upside Potential, we studied Greenlight Capital's Q4 2024 13F filings to identify billionaire Glenn Russell Dubin's stock picks with the most upside potential. We evaluated the firms in ascending order of upside potential. These stocks are also popular with elite hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). An oil tanker sailing across the horizon, conveying the importance of crude oil transportation for the company. Number of Hedge Fund Holders: 92 Upside Potential: 27.40% Hess Corporation (NYSE:HES) is an exploration and production company that develops, produces, and sells crude oil, natural gas liquids, and natural gas. The company is principally active in the United States, Guyana, and Malaysia, with significant offshore exploration activity in the Gulf of Mexico and Guyana. Its two main business sectors are exploration and production (E&P) and midstream. For the first quarter of 2025, which ended March 31, Hess Corporation (NYSE:HES) reported net income of $430 million, or $1.39 per share, a considerable decrease from $972 million, or $3.16 per share, in Q1 2024. On an adjusted basis, the company earned $559 million in net income, or $1.81 per share. The reduction in earnings was mostly caused by lower realized oil prices, which averaged $71.22 per barrel in Q1 2025, compared to $80.06 in Q1 2024. Despite this, Hess' net output remained stable at 476,000 barrels of oil equivalent per day (boepd) in Q1 2025 and Q1 2024. Hess Corporation's (NYSE:HES) Bakken assets experienced higher production of 195,000 boepd in Q1 2025, up from 190,000 boepd in the previous year's quarter. Offshore production in the Gulf of Mexico and Guyana also demonstrated resiliency, with the Stabroek Block delivering 183,000 bopd in Q1 2025, a modest decrease from 190,000 bopd in Q1 2024. The company expects production to range between 480,000 and 490,000 boepd in Q2 2025. The Midstream segment's net income increased to $70 million in Q1 2025 from $67 million the previous year. Hess' Yellowtail project in Guyana is set to begin operations in Q3 2025, with a production capacity of 250,000 barrels of oil per day (bopd). Given these encouraging developments, including increased production capacity and continuing projects such as Yellowtail, Hess is poised for significant future growth, ranking among the top stocks with excellent upside potential. Glen Russell's stake in Hess Corporation's (NYSE:HES) was worth $77 million, which accounted for 2.88% of his portfolio at the end of Q4 2024 Overall, HES ranks 10th on our list of billionaire Glenn Russell Dubin's stock picks with huge upside potential. While we acknowledge the potential of HES, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than HES but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at . Sign in to access your portfolio
