Barclays Maintains an 'Overweight' on Hess (HES); 3Q11 Preview: Expect $1.22 vs. Consensus $1.41
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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) price target of $105.00.
Barclays analyst says, "Upstream: We forecast upstream earnings of $472 million, down 15% y-o-y and 37% q-o-q, or $15.0/boe. Total production is estimated at 342 mboe/d (000's boe/d), down 17% y-o-y and 8% q-o-q...Downstream: We expect downstream earnings of $50 million, compared to -$38 million in both 2Q11 and 3Q10. We forecast refining throughput at 240 mb/d, compared to 218 mb/d in 2Q11 and 265 mb/d in 3Q10...HES estimates include the previously disclosed hedging loss of approximately $85 million, or $0.25/share loss. Our estimates also exclude Libya starting mid-February, while including the impact of the recent UK tax increases from 50% to 62%, starting 3Q11. In addition, we assume total exploration expense of $350 million. To be conservative, our estimate assumes the Andalan exploration well (Semai V Block, Indonesia) will be a dry hole at an expense of $125 million pre-tax, or $0.24/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 $59.80 yesterday.
Barclays analyst says, "Upstream: We forecast upstream earnings of $472 million, down 15% y-o-y and 37% q-o-q, or $15.0/boe. Total production is estimated at 342 mboe/d (000's boe/d), down 17% y-o-y and 8% q-o-q...Downstream: We expect downstream earnings of $50 million, compared to -$38 million in both 2Q11 and 3Q10. We forecast refining throughput at 240 mb/d, compared to 218 mb/d in 2Q11 and 265 mb/d in 3Q10...HES estimates include the previously disclosed hedging loss of approximately $85 million, or $0.25/share loss. Our estimates also exclude Libya starting mid-February, while including the impact of the recent UK tax increases from 50% to 62%, starting 3Q11. In addition, we assume total exploration expense of $350 million. To be conservative, our estimate assumes the Andalan exploration well (Semai V Block, Indonesia) will be a dry hole at an expense of $125 million pre-tax, or $0.24/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 $59.80 yesterday.
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