With a market cap of $42.8 billion, Hess Corporation (HES) is a global energy company engaged in the exploration, production, and marketing of crude oil and natural gas. Headquartered in New York City, Hess operates primarily in the upstream sector, focusing on oil and gas exploration and production activities in locations such as the U.S. Gulf of Mexico, offshore Guyana, and several international markets.
Over the past 52 weeks, Hess Corporation's shares have lagged behind the broader market, declining 4.9%, while the S&P 500 Index ($SPX) has surged 20.9%. However, HES has shown signs of recovery in 2025, with a 4.4% year-to-date gain, outperforming the S&P 500’s 1.9% YTD increase.
Similarly, HES has underperformed the Energy Select Sector SPDR Fund’s (XLE) 5.6% gain over the past 52 weeks but has outpaced the ETF’s 3% rise in 2025.
On Jan. 29, 2025, HES reported estimated results for the fourth quarter, and its shares rose marginally. Its net income of $1.76 per share and revenue of $3.2 billion topped the Street forecasts. Oil and gas net production increased by 18% year over year to 495,000 barrels of oil equivalent per day (boepd), driven by significant growth in Guyana and Bakken operations.
For Q1 2025, Hess Corporation anticipates net production to average between 465,000 and 475,000 boepd due to planned maintenance activities in Guyana and potential winter weather impacts in the Bakken region.
For the current fiscal year, ending in December 2025, analysts expect HES’ EPS to fall 20.6% year-over-year to $7.69. On the bright side, the company’s earnings surprise history is promising. It beat the consensus estimates in the last four quarters.
Analysts' consensus rating on Hess Corporation is cautiously optimistic, with a "Moderate Buy" rating overall. Among the 15 analysts covering the stock, opinions include six “Strong Buys” and nine “Holds.”
This configuration is slightly more bullish than two months ago, with five “Strong Buy” ratings on the stock.
On December 9, Wells Fargo & Company (WFC) analyst Roger Read upgraded HES to “Overweight” from “Equal-Weight” and raised its price target to $193, up from $151. While oil price forecasts remain tepid, Roger expects positive returns for the oil and gas sector in 2025 due to spending discipline.
The mean price target of $169.15 implies a potential upside of 21.8% from HES' current price. The Street-high target of $199 represents a premium of 43.3% from the prevailing price levels.
