Hess Corp. (HES) PT Lowered to $145 at CFRA

CFRA analyst Stewart Glickman lowered the price target on Hess Corp. (NYSE: HES) to $145.00 (from $150.00) while maintaining a Hold rating.

The analyst comments "Our 12-month target price of $145, cut $5, reflects a 7.1x multiple of enterprise value to projected '25 EBITDA, below HES's historical forward average, on high regulatory risk. We cut our '24 EPS estimate by $1.91 to $8.93 and '24's by $2.04 to $8.69. Q3 EPS of $2.14, vs. $1.64, beat the consensus view by $0.37. Q3 production of 461,000 boe/d was up 66,000 boe/d year-over-year (+17%). HES generated a realized price of $77.06 per barrel of crude oil in Q3, down 5.5% year-over-year. Much of the improvement in volumes is coming from Guyana, where HES enjoys a 30% stake. HES notes that the 4th, 5th, and 6th developments in the Stabroek block are likely to achieve first production in 2025, 2026, and 2027, respectively. A 7th development could be sanctioned soon. The legal skirmishing over the Guyana stake between HES's pending acquirer, Chevron Corp. (CVX 149 ***) and rival Exxon Mobil Corp. (XOM 117 ****), is not likely to be resolved until late '25."

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