Morningstar Rating

Stock Research and Analysis

by Stephen Simko, CFA

Bulls Say

Hess' Bakken acreage is truly world-class. While suffering mightily in the current period of weak oil prices, this remains a cost-advantaged asset that will create significant long-term value for the company.
Directors on Hess' board are now elected annually; this means that any directors (including John Hess) that oppose strategic changes must answer to shareholders every year. Read more 

Bears Say

Hess is heavily exposed to Bakken oil pricing dynamics, and inexplicably has rarely ever hedged its U.S. production.
We doubt that John Hess is truly capable of leading a top-tier E&P, even with increased pressure and oversight from the board.
Beyond the Bakken, other growth options (Utica/Stampede/Ghana) are all low-value, small resources for a company of Hess' size. Read more 

Management

Hess' stewardship of capital historically has been poor, and there's a strong case to be made that this has been due to a combination of too little focus placed on capital efficiency and a board of directors that hasn't held CEO John Hess to account.  Read more 

Profile

Hess is a global oil and gas producer with producing properties on four continents, although most of its resource base is focused in the United States. The company's most   Read more 

Rethinking Dividend-Paying Energy Stocks 
Watch more 

Premium Membership

View all of our analyst reports with a free trial to Morningstar.com Premium.