Barclays Maintains an 'Overweight' on Hess Corp. (HES); Management Visit Highlights: Ghana Is Promising + Improving Bakken Productivity
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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: 5 | New: 26
Rating Summary:
19 Buy, 21 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays maintains an 'Overweight' on Hess Corp. (NYSE: HES), PT $108.
Barclays analyst says, "Barclays Capital hosted a visit to Hess' NYC headquarters on 6/2/11. We met with John Hess, CEO & Chairman, Greg Hill, Head of Upstream, and Jay Wilson, VP Investor Relations. We think the meeting is incrementally positive. We continue to recommend the purchase of the shares in light of its inexpensive valuation and strong potential exploration upside in Ghana."
"Positive: 1) Ghana update within the next two weeks: We believe the company may have also hit hydrocarbon pay zone in the third interval. In addition, we believe the well has good liquid content. 2) Bakken continuing productivity improvement-Current design adopts 38 stages frac compared to 24-28 stages in 1Q11 and 22-24 stages in 4Q10. 3) Eagle Ford early result is promising."
"Negative: 2Q11 Bakken production has been severely impacted by poor weather: Currently running at 30 mboe/d compared to our estimate of an average 35 mboe/d for 2Q. However, due to improving productivity, management is optimistic that they could largely catch up the shortfall in the second half of the year and will average close to their previous 2011 guidance of 40 mboe/d."
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 $76.70 yesterday.
Barclays analyst says, "Barclays Capital hosted a visit to Hess' NYC headquarters on 6/2/11. We met with John Hess, CEO & Chairman, Greg Hill, Head of Upstream, and Jay Wilson, VP Investor Relations. We think the meeting is incrementally positive. We continue to recommend the purchase of the shares in light of its inexpensive valuation and strong potential exploration upside in Ghana."
"Positive: 1) Ghana update within the next two weeks: We believe the company may have also hit hydrocarbon pay zone in the third interval. In addition, we believe the well has good liquid content. 2) Bakken continuing productivity improvement-Current design adopts 38 stages frac compared to 24-28 stages in 1Q11 and 22-24 stages in 4Q10. 3) Eagle Ford early result is promising."
"Negative: 2Q11 Bakken production has been severely impacted by poor weather: Currently running at 30 mboe/d compared to our estimate of an average 35 mboe/d for 2Q. However, due to improving productivity, management is optimistic that they could largely catch up the shortfall in the second half of the year and will average close to their previous 2011 guidance of 40 mboe/d."
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 $76.70 yesterday.
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