|Day's Range||23.43 - 23.43|
Our call of the day comes from Macquarie’s chief investment officer for small and mid-cap value stocks, who says investors are overlooking some gems.
The energy sector is comprised of companies focused on the exploration, production, and marketing of oil, gas, and renewable resources around the world. Well-known companies in this group include Occidental Petroleum Corp. (OXY) and EOG Resources Inc. (EOG). Downstream companies that include HollyFrontier Corp. (HFC) refine and process oil and gas products for delivery to consumers .
Hess announces oil discovery at Uaru, offshore Guyana; Stabroek Block recoverable resources estimated to be over 8 billion barrels of oil equivalent.
Although an increase in total US production is expected to boost Hess' (HES) Q4 earnings, declining average selling prices of crude oil might partially dampen growth.
Two oil-and-gas companies have cut their payouts in the past month. A new report attempts to predict which others could do the same in the months ahead.
Hess (HES) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Exxon Mobil's oil contract with Guyana would be exempt from a review of the South American nation's deals if the opposition wins the March 2 election, the party's top candidate said. While his People's Progressive Party (PPP) has criticized President David Granger's 2016 deal with Exxon as too generous, Irfaan Ali called the company - whose 1 million barrel cargo of Guyana's first-ever crude production set sail on Monday - a "pioneer" in an interview over the weekend. The PPP's platform pledged to "immediately engage the oil and gas companies in better contract administration/re-negotiation." Other companies exploring off Guyana's coast include Britain's Tullow Oil, Spain's Repsol SA and France's Total.
The hottest area for new oil and gas production isn’t in the Middle East or the U.S. Permian Basin. It’s off the northeast coast of South America.
(Bloomberg) -- Hess Corp. rose above the carnage in shale stocks with a more traditional approach to oil exploration -- partnering in a massive offshore discovery in a frontier nation.Investors flocked to New York-based Hess in 2019 to participate in Exxon Mobil Corp.’s gigantic Guyana oil find, and avoid cash-burning shale specialists. Hess, which holds a 30% stake in the Guyanese discovery that’s turned into the world’s biggest new deepwater oil prospect, climbed 65% last year, leading gains in the S&P 500 Energy Index. That was its biggest annual increase since 2007.“Most of the outperformance is attributable to the company’s continued success offshore Guyana,” Muhammed Ghulam, a Houston-based analyst at Raymond James & Associates, said by email. The rally in Hess shares is poised to carry on “if it continues to see success” from drilling in Guyana and neighboring Suriname.Hess outperformed every other stock in the S&P 500 Energy Index of 28 companies last year. That was in stark contrast to index peers such as Occidental Petroleum Corp., which posted it steepest decline in two decades after the ill-received acquisition of Anadarko Petroleum Corp., and Cabot Oil & Gas Corp., which tumbled more than 20%.For Hess, it was a remarkable turnaround from 2018 when the company led by Chief Executive Officer John Hess was targeted by activist investor Elliott Management Corp. for pursuing high-cost shale projects in the Bakken region of North Dakota.“Hess has been on fire,” Paul Sankey, a New York-based analyst at Mizuho Securities USA, said in a note to clients. While much of the success in Guyana already is reflected in Hess’ stock price, the company could see further uplift when cash from the development begins to flow in, he said.Bet of the CenturyThe genesis for Hess’ success was in 2014, when crashing oil prices spurred Royal Dutch Shell Plc to pull out of its 50-50 partnership with Exxon in Guyana. That left the American supermajor in need of a new partner in its high-risk, wildcat drilling campaign in a region that had never before produced any oil.Hess stepped in, as did China’s CNOOC Ltd., which bought a 25% stake.It turned out to be one of the best bets of the century, with Exxon uncovering an oil deposit so massive that its boundaries have yet to be discerned. Exxon Senior Vice President Neil Chapman characterized the discovery as a “fairly tale” during a 2018 conference call.In subsequent years, Exxon and its partners have made 14 more finds totaling more than 6 billion barrels. Commercial production began in late December even as exploratory drilling continues.“At this point, we think production from Guyana developments over the next five or so years are in expectations,” Sankey said. “We would need to see more connection of Guyana operational success back to cash return growth to drive re-rating higher.”(Updates with context for annual gain in second paragraph.)To contact the reporter on this story: Kevin Crowley in Houston at email@example.comTo contact the editor responsible for this story: Simon Casey at firstname.lastname@example.orgFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
With this deal, Shell (RDS.A) will expand its footprint in the oil market of Guyana, thus supporting the country's oil marketing efforts.
It has been a fantastic year for equity investors as Donald Trump pressured Federal Reserve to reduce interest rates and finalized the first leg of a trade deal with China. If you were a passive index fund investor, you had seen gains of 31% in your equity portfolio in 2019. However, if you were an […]
Hess Corp (HES) estimates gross resources of more than 6 billion barrels of oil equivalent from its 15 promising discoveries in the Stabroek Block, offshore Guyana.