Gregory P. Hill, the Chief Operating Officer and President of Exploration and Production at Hess Corp (NYSE:HES), sold shares in the company totaling approximately $8.7 million, according to a recent SEC filing. The transactions took place on November 5, 2024, and involved the sale of 62,871 shares at prices ranging from $138.35 to $139.19 per share.
Following these sales, Hill retains ownership of 62,799 shares, which are held in escrow as part of Hess Corporation (NYSE:HES)'s Long-Term Incentive Plans. These shares are subject to certain conditions, including continued employment with the corporation, before they are fully transferred to Hill.
In other recent news, Hess Corp's financial outlook was recently revised by CFRA, with a downward adjustment of the stock price target to $145.00 from $150.00 due to regulatory risks. The company's 2024 and 2025 earnings per share estimates were also reduced. Despite these revisions, Hess Corp reported a third-quarter earnings per share of $2.14, surpassing consensus estimates, and a significant increase in daily production rate. The company's operations in Guyana have contributed substantially to its production growth, with additional developments expected to commence production in the coming years.
Meanwhile, Chevron Corporation (NYSE:CVX)'s acquisition of Hess Corporation has been delayed due to a challenge from Exxon (NYSE:XOM), adding a layer of uncertainty to Hess Corp's outlook. Chevron, facing declining earnings and operational challenges, is relying on this acquisition as central to its growth strategy. The resolution of this matter is not anticipated until late 2025.
Hess Corporation has delivered better-than-expected third quarter results, with a 17% year-over-year increase in net production. Despite a decrease in realized crude oil selling prices, the company raised its 2024 capital expenditure forecast and announced a 14% dividend increase. These recent developments have been closely watched by analysts, who have expressed concerns about Chevron's ongoing operational issues and the potential fallout if the Hess acquisition falls through.
InvestingPro Insights
As Gregory P. Hill's recent share sale draws attention, it's worth examining Hess Corp's current financial position and market performance. According to InvestingPro data, Hess Corp boasts a market capitalization of $43.74 billion, reflecting its significant presence in the energy sector. The company's P/E ratio stands at 16.57, suggesting a reasonable valuation relative to its earnings.
Hess Corp has demonstrated strong financial performance, with revenue growth of 21.98% over the last twelve months as of Q3 2024, reaching $12.47 billion. This growth is complemented by a robust gross profit margin of 77.12%, indicating efficient operations and cost management.
InvestingPro Tips highlight that Hess Corp is trading at a low P/E ratio relative to its near-term earnings growth, which could signal an attractive entry point for investors. Additionally, the company has maintained dividend payments for 38 consecutive years, showcasing its commitment to shareholder returns. This is further supported by a current dividend yield of 1.4% and a dividend growth of 14.29% over the last twelve months.
These insights provide context to Hill's share sale and offer a broader perspective on Hess Corp's financial health and market position. For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips on Hess Corp, providing a deeper understanding of the company's potential and risks.
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