|Bid||51.50 x 1000|
|Ask||52.50 x 1200|
|Day's Range||51.53 - 52.32|
|52 Week Range||35.59 - 74.81|
|Beta (3Y Monthly)||1.95|
|PE Ratio (TTM)||N/A|
|Earnings Date||Jan 30, 2019|
|Forward Dividend & Yield||1.00 (1.93%)|
|1y Target Est||63.65|
Companies in the sector have not held a single bond sale since the start of November, according to Dealogic, while share sales have also slowed. The government’s Energy Information Administration has forecast that between December 2018 and December 2019, US crude production will rise by about 500,000 barrels a day. The US shale industry has relied heavily on debt to finance its growth, with exploration and production companies raising about $300bn from bond issuance over the past 10 years.
# Hess Corp ### NYSE:HES View full report here! ## Summary * Perception of the company's creditworthiness is negative but improving * ETFs holding this stock have seen outflows over the last one-month * Bearish sentiment is moderate and declining * Economic output in this company's sector is contracting ## Bearish sentiment Short interest | Positive Short interest is moderate for HES with between 5 and 10% of shares outstanding currently on loan. However, this was an improvement in sentiment as investors who seek to profit from falling equity prices reduced their short positions on January 18. ## Money flow ETF/Index ownership | Negative ETF activity is negative. Over the last one-month, outflows of investor capital in ETFs holding HES totaled $591 million. Additionally, the rate of outflows appears to be accelerating. ## Economic sentiment PMI by IHS Markit There is no PMI sector data available for this security. ## Credit worthiness Credit default swap | Negative The current level displays a negative indicator with a strengthening bias over the past 1-month. Although HES credit default swap spreads are decreasing, they are near their highest levels for the past 1 year, which indicates the market's more negative perception of the company's credit worthiness. Please send all inquiries related to the report to firstname.lastname@example.org. Charts and report PDFs will only be available for 30 days after publishing. This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Measuring Oil's Impact on Upstream Energy Stocks(Continued from Prior Part)Oil-weighted stocks’ returnsOn January 9–16, our list of oil-weighted stocks fell 1%—compared to the 0.1% fall in US crude oil February futures. On average, our list
Oil Traders: Goldman Sachs Expects a Slowdown(Continued from Prior Part)Futures spreadOn January 14, US crude oil February 2019 futures closed ~$2.58 below the February 2020 futures. On January 7, the futures spread was at a discount of ~$3.1. On
# Hess Corp ### NYSE:HES View full report here! ## Summary * Perception of the company's creditworthiness is negative but improving * Bearish sentiment is moderate and declining * Economic output in this company's sector is contracting ## Bearish sentiment Short interest | Positive Short interest is moderate for HES with between 5 and 10% of shares outstanding currently on loan. However, this was an improvement in sentiment as investors who seek to profit from falling equity prices reduced their short positions on December 21. ## Money flow ETF/Index ownership | Neutral ETF activity is neutral. The net inflows of $11.55 billion over the last one-month into ETFs that hold HES are not among the highest of the last year and have been slowing. ## Economic sentiment PMI by IHS Markit There is no PMI sector data available for this security. ## Credit worthiness Credit default swap | Negative The current level displays a negative indicator with a strengthening bias over the past 1-month. Although HES credit default swap spreads are decreasing, they are near their highest levels for the past 1 year, which indicates the market's more negative perception of the company's credit worthiness. Please send all inquiries related to the report to email@example.com. Charts and report PDFs will only be available for 30 days after publishing. This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Upstream Review for the Week Ending January 11 (Continued from Prior Part) ## Upstream stocks On January 4–11, QEP Resources (QEP) gained the most on our list of upstream energy stocks from the SPDR S&P Oil & Gas Exploration & Production ETF (XOP). XOP rose 6.2%—the second-largest rise among the major energy ETFs that we discussed in the previous part of this series. On January 7, QEP Resources announced that it has received “a preliminary proposal from Elliott Management Corp. (“Elliott”) to acquire the Company for $8.75 per share in cash, subject to certain conditions including, among others, satisfactory completion of due diligence and negotiation of definitive documentation.” On the same day, QEP Resources rose 40.3%. ## Other outperformers Chesapeake Energy (CHK), SM Energy (SM), Matador Resources (MTDR), and Hess (HES) were the second, third, fourth, and fifth-largest outperformers, respectively, on our list of upstream energy stocks last week. On January 9, Chesapeake Energy reported its fourth-quarter preliminary results and operational details. On the same day, Chesapeake Energy rose ~12.7%. Chesapeake Energy has hedged ~16 MMbbls (million barrels) of 2019 oil production at $58.61 per barrel, which is higher than WTI’s forecast for 2019. Chesapeake Energy hedged 7 MMbbls of its 2019 forecasted production in the Eagle Ford at $6 more than WTI prices. LLS (Louisiana Light Sweet) crude oil versus WTI at Cushing, or the LLS-WTC spread, fell to $4.5 per barrel on December 27—the lowest level since August 24. LLS is the benchmark for most light sweet crude produced in the Eagle Ford region in Texas. On January 4, Hess announced that it will report its fourth-quarter earnings on January 30. Analysts’ consensus estimate suggests that Hess might report negative earnings of 21 cents per share. Last week, US crude oil January futures closed at $51.59 per barrel, while natural gas January futures closed at $3.09 per MMBtu. Next, we’ll discuss the biggest declines in the upstream energy space. Continue to Next Part Browse this series on Market Realist: * Part 1 - Upstream Sector Rose Last Week * Part 3 - Which Upstream Stocks Underperformed Last Week?
Energy's Performance Last Week—and What's on the Agenda This Week (Continued from Prior Part) ## Oil-tracking ETFs Between January 4 and January 11, the United States Oil ETF (USO), the United States 12-Month Oil ETF (USL), and the ProShares Ultra Bloomberg Crude Oil ETF (UCO) rose 7.1%, 6.2%, and 14.4%, respectively. These ETFs track US crude oil futures. USO holds active US crude oil futures, while USL holds US crude oil futures deliverable for each of the next 12 months. UCO tracks daily changes in the Bloomberg WTI Crude Oil Subindex. USO and USL underperformed US crude oil February futures, which rose 7.6% last week. Higher oil prices can boost oil-weighted stocks. Whiting Petroleum (WLL), Hess Corporation (HES), and Callon Petroleum (CPE), the strongest oil-weighted stocks, rose 10.9%, 12.2%, and 16%, respectively, last week. ## Long-term returns and the forward curve Between February 11, 2016, and January 11, 2019, US crude oil active futures rose 96.8% from their 12-year low. USO, USL, and UCO rose 36.4%, 41.6%, and 29.3%, respectively. A negative roll yield, which occurs when expiring futures contract prices are lower than the following month’s futures contract prices, may have caused the lower returns. UCO’s actual and expected returns could also be different due to daily price changes. In a cost-of-carry model, ETFs’ underperformances due to negative roll yields reflect storage costs. On January 11, US crude oil futures for delivery between February and August 2019 closed in ascending order, which could be a negative sign for these ETFs’ returns. Continue to Next Part Browse this series on Market Realist: * Part 1 - The China Factor Could Drag on Oil This Week * Part 2 - Oil’s Rise Wasn’t the Only Driver of Energy’s Score Last Week * Part 3 - These Upstream and Oilfield Stocks Outperformed Energy Last Week
DEEP DIVE Memories of a brutal fourth-quarter haven't been erased, but investors are breathing a sigh of relief with a reversal in the direction of stocks so far this year. In fact, U.S. stocks have gotten off to their best start in 13 years.
Last year was one for the record books when it comes to master limited partnerships (MLPs). But not necessarily in a good way. The tax structure was long favored by investors seeking high dividends in our world of low interest rates. However, thanks to changes to the tax code and the Fed's path to normalcy, MLPs have been falling by the wayside. Both in share price from rising rates and in actual existence. Thanks to the Republican tax plan, MLPs do not necessarily make much sense anymore and many parent/GPs have been swallowing their MLP subsidiaries. For income seekers, this removes many potential opportunities to score an extra high-yield. But investors shouldn't fret too much. InvestorPlace - Stock Market News, Stock Advice & Trading Tips There are still a few MLPs sticking around and more importantly, those that are, happen to be some of the best and strongest partnerships around. And with the supply of MLPs dwindling, analysts expect a good year ahead for the remaining firms. * 10 Oversold Stocks Due for a Bounce With that in mind, here are three MLPs to buy for the new year. ### MPLX (MPLX) Source: Riccardo Annandale Via Unsplash Distribution Yield: 8.27% It's not often you can find real growth potential and strong cash flows/distribution increases. Often, it's one or the other when it comes to MLPs. But MPLX (NYSE:MPLX) has both in spades. Originally, MPLX was set-up by refining giant Marathon Petroleum Corp (NYSE:MPC) to own the various pipelines that feed its facilities. However, in the years since launching, the MLP has become a giant in its own right -- controlling thousands of miles worth of pipelines, processing assets and storage terminals. A huge part of that is focused on natural gas after its game-changing acquisition of MarkWest. This brought in plenty of natural gas gathering, transportation and fractionators under its umbrella. This provided MPLX with a steady base with the refining assets as well as high growth operations from the natural gas portion. What it has really done is make MPLX a cash flow and distribution machine since its IPO. Since 2016 alone, MPLX has managed to see its distributable cash flows jump a whopping 224%! Distributions have increased by 125% since its IPO in 2012 and the MLPX currently yields a big 8.27%. With new growth opportunities in the Permian and other points in Texas, MPLX shouldn't be able to keep the growth going in the new year. And with MPC's management already signaling that the MLP structure works for them, investors know this is one firm that will last for a while. All in all, MPLX represents one of the best MLPs to bet on for 2019 and into the future. ### Magellan Midstream Partners, L.P. (MMP) Source: Tony Webster via Flickr Distribution Yield: 6.91% Magellan Midstream Partners, L.P. (NYSE:MMP) proves that boring is beautiful when it comes to MLPs. MMP has long been a port in the storm and it has continued to reward shareholders throughout its history. The key is its focus on crude oil. Magellan's 11,000+ miles worth of pipelines and storage facilitates makes up the largest refined petroleum products pipeline system in the country. Roughly half of the nation's total refining capacity, either going into refineries or coming out to end-users, can tap into one of MMP's system of pipelines, terminals or storage farms. This huge system provides Magellan with plenty of cash flow generation, that in turn trickles down to investors. Over the last 18 years, MMP has managed to increase its distribution every year and it has done so at an annual rate of around 10% per year. Perhaps the best part of MMP is that it has some of the most conservative management in the entire MLP sector. They only invest in quality projects and don't chase returns. They also try and keep coverage ratios at great levels. With that, MMP's management is pulling back slightly on its distribution growth -- targeting 8% -- and investing $2.5 billion in some new pipelines for additional growth. All of which should keep its coverage ratio at around 1.2x. That's just perfect for MLPs. * 7 Best Fidelity Funds for 2019 And perfection is what you get with MMP. For investors still looking for MLPs, Magellan deserves a place in your portfolio. ### Hess Midstream Partners LP (HESM) Source: Mike Mozart via Flickr Distribution Yield: 7.81% MLPs succeed based on the strength of their partners. Drop-downs can be an integral part of how an MLP grows. So, naturally, if the firm's partner is big and growing, then the MLP will be as well. A good example of this could be Hess Midstream Partners LP. (NYSE:HESM). A couple of years ago, energy stock Hess (NYSE:HES) was the target of activist investors. That shook up shares, resulted in asset sales and the MLP launch of HESM. The IPO of its pipeline assets turned out to be a great decision for HES and its investors. HESM focus is on the prolific Bakken shale, where Hess owns more than 550,000 acres of land. The Bakken continues to be one of the hotbeds of drilling activity in the U.S. Despite that, infrastructure to get that crude oil out of the ground and to market remains poor. Because of this, HESM has a major foothold in the region and can charge some pretty hefty rates for other drillers to use its system. Meanwhile, HES provides plenty of stable volumes/cash from its drilling activity. The continued growth in drilling and throughput in its system has allowed HESM to see an amazing 19% compound annual growth rate (CAGR) for earnings and a 15% CAGR for its distributable cash flows. The best part is, there's still dropdown potential from its parent and increased demand from other shippers. With 100% of its revenues coming from fees rather than the price of oil and contracts averaging 10 years, HESM still has plenty of growth left in the tank. It may be new, but Hess Midstream is already becoming one of the best MLPs to buy. At the time of this writing, Aaron Levitt did not hold a position in any of the aforementioned securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Buy Down 20% in December * 5 Chinese Stocks to Avoid Now (But Buy Later) * 3 Big Gainers That Easily Could Be the Best Stocks to Buy Compare Brokers The post 3 High-Yield MLPs to Buy for a Stronger Portfolio in 2019 appeared first on InvestorPlace.
The energy sector suffered through a painful 2018, tacking on another year of underperformance relative to the broader market. Over the past five years, energy has largely missed the bull market, driven by headwinds such as oil price instability, oversupply concerns, geopolitical risks, and fears of slowing economic growth.
ExxonMobil (XOM) expects the Stabroek Block to accommodate at least five FPSO vessels, with oil production capacity of more than 750,000 barrels per day, by 2025.
NEW YORK, Jan. 07, 2019 -- In new independent research reports released early this morning, Market Source Research released its latest key findings for all current investors,.
Hess Corporation (HES) said today that drilling has begun on the Haimara-1 exploration well offshore Guyana, the first of two planned exploration wells in January. The Tilapia-1 well is located in the growing Turbot area. Operator ExxonMobil is progressing the Liza Phase 1 development, which has moved into its peak execution phase ahead of expected startup in early 2020.
Hess Corporation (HES) announced today that it will hold a conference call on Wednesday, January 30, 2019 at 10 a.m. Eastern Time to discuss its fourth quarter 2018 earnings release. To phone into the conference call, parties in the United States should dial 877-693-6685 and enter the pass code 6023289 after 9:45 a.m. Outside the United States, parties should dial 443-295-9223 and enter the pass code 6023289. This conference call will also be accessible by webcast (audio only).
We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have Read More...
How Oil-Weighted Stocks Performed Last Quarter(Continued from Prior Part)Oil-weighted stocks The following oil-weighted stocks could be the most sensitive to US crude oil’s movements. They might be impacted the most by oil’s price movement based on their correlations with US crude oil active futures in the fourth quarter of 2018: Denbury Resources (DNR) at 64.
Analysts say several oil exploration and production companies should benefit from rising oil prices, but beware of those most sensitive to shifting commodity prices.
On December 19–26, our list of oil-weighted stocks fell 2.2%—compared to the 4% fall in US crude oil February futures. On average, our list of oil-weighted stocks outperformed US crude oil prices. The sharp fall in US equity indexes in the past might have made oil’s fall sharper.