Hess (HES) Prepares for Success in 2019 and Beyond
In a recently released 2019 budget, Hess Corporation (HES) has revealed that the company is planning to significantly increase spending compared to 2018's levels. Making itself an outlier compared to its exploration and production peers, Hess reiterated that its increased investment will pay big dividends down the road.
Hess also revealed that it plans to invest $2.9 billion in capex during 2019, nearly 40% higher than the $2.1 billion it spent in both 2017 and 2018. Further, it plans to allocate nearly three-quarters of $2.9 billion in assets it calls "high-return growth" in the U.S.'s Bakken formation and in Guyana to boost production in the near term. 20% would be invested in longer-term offshore development projects, and the remaining 15% on exploration and appraisal activities.
According to Hess, a major chunk of the production-focused spending will be on the Bakken Shale, where it plans to invest $1.425 billion so that it can operate an average of six drilling rigs. In addition, Hess plans to invest $290 million in its Gulf of Mexico operations to continue developing its Stampede Field, along with $150 million in Malaysia and Thailand.
All of Hess's development money will go toward the first two phases of Exxon's (XOM) Liza discovery offshore Guyana, where it plans to spend $260 million on phase one. This should enable them to start producing next year, and they have set aside $310 million toward phase two, which Exxon expects to sanction in 2019.
Finally, Hess plans to invest $440 million in continuing its exploration activities offshore Guyana with Exxon, as well as further exploring the deep-water Gulf of Mexico and offshore Suriname.
Hess believes this increased spending could enhance its position to grow production and cash flow at a fast pace over the next few years.
Momentum Indicator for HES turns positive, indicating new upward trend
HES saw its Momentum Indicator move above the 0 level on June 03, 2025. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 84 similar instances where the indicator turned positive. In of the 84 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
HES moved above its 50-day moving average on June 06, 2025 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for HES crossed bullishly above the 50-day moving average on June 10, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where HES advanced for three days, in of 356 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 292 cases where HES Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
The 50-day moving average for HES moved below the 200-day moving average on May 23, 2025. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where HES declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
HES broke above its upper Bollinger Band on June 10, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 70, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. HES’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.291) is normal, around the industry mean (4.617). P/E Ratio (34.472) is within average values for comparable stocks, (19.446). Projected Growth (PEG Ratio) (6.419) is also within normal values, averaging (4.890). Dividend Yield (0.011) settles around the average of (0.085) among similar stocks. P/S Ratio (4.529) is also within normal values, averaging (163.418).
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General Information
a producer of crude oil
Industry OilGasProduction
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