Barclays Maintains an 'Overweight' on Hess Corp. (HES); Ghana Looks Like A Success
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Price: $148.97 --0%
Rating Summary:
19 Buy, 21 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
Rating Summary:
19 Buy, 21 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
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Barclays maintains an 'Overweight' on Hess Corp. (NYSE: HES), PT increased from $105 to $108.
Barclays analyst says, "HES continues to be one of our favorites among the Integrated Oil companies and we are a buyer here. We view positively the preliminary results at HES' Paradise prospect in deepwater Tano Cape Three Points block, Ghana. Although the well is still drilling, HES has already encountered 370 ft of net hydrocarbon pay in 2 separate intervals. The plan now is to drill an additional 1,100 ft to test a third stratigraphic interval to reach TD of approximately 16,400 feet (about 2-3 weeks). HES is carrying 100% of the well cost and has a 90% working interest."
"At $100/bl Brent, we estimate the loss of Libyan operation reduces Hess' annual EPS by only $0.14/share due to the high tax regime (93.5% effective tax rate) and estimate the UK tax increase from 50% to 62% raises the company's tax bill by $0.14/share. HES also remains one of the cheapest names within our universe. We keep our 2011 EPS unchanged at $8.70, but lower our 2012 EPS estimates for HES to $8.40/share from $9.05/share."
For more ratings news on Hess Corp. click here and for the rating history of Hess Corp. click here.
Shares of Hess Corp. closed at $82.74 yesterday.
Barclays analyst says, "HES continues to be one of our favorites among the Integrated Oil companies and we are a buyer here. We view positively the preliminary results at HES' Paradise prospect in deepwater Tano Cape Three Points block, Ghana. Although the well is still drilling, HES has already encountered 370 ft of net hydrocarbon pay in 2 separate intervals. The plan now is to drill an additional 1,100 ft to test a third stratigraphic interval to reach TD of approximately 16,400 feet (about 2-3 weeks). HES is carrying 100% of the well cost and has a 90% working interest."
"At $100/bl Brent, we estimate the loss of Libyan operation reduces Hess' annual EPS by only $0.14/share due to the high tax regime (93.5% effective tax rate) and estimate the UK tax increase from 50% to 62% raises the company's tax bill by $0.14/share. HES also remains one of the cheapest names within our universe. We keep our 2011 EPS unchanged at $8.70, but lower our 2012 EPS estimates for HES to $8.40/share from $9.05/share."
For more ratings news on Hess Corp. click here and for the rating history of Hess Corp. click here.
Shares of Hess Corp. closed at $82.74 yesterday.
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