Hess Corporation (Hess) is an integrated energy company globally engaged in Exploration and Production (E&P) and Marketing and Refining (M&R) businesses. The company primarily focuses on the development of its E&P business to drive its growth and support its overall oil and gas portfolio. However, in the last couple of years, Hess has disposed a large portion of its mature E&P assets in the Gulf of Mexico (GOM) and North Sea regions in order to support its exploration programs in Australia, Brazil, Ghana, Libya and Egypt. Apart from its exploration assets, the company has been strengthening its assets of the Joint Development Area project in Thailand-Malaysia, the Okume Complex and Ceiba fields in Equatorial Guinea, the Ujung Pangkah field in Indonesia, the Shenzi field in deepwater GOM and the North Dakota Bakken shale which are all in the development or production stage. It has been anticipating additional production from its Shenzi field, the phase two development of Ujung Pangkah and its Bakken shale assets in the coming years.
The company has been supplementing its E&P business through its refining facility in Port Reading in New Jersey. With diversified oil and gas portfolio the company has been maximizing its financial returns and strengthening its long-term growth.
Key Highlights: This section provides detailed analysis on the company's overall oil and gas value chain, new projects, growth opportunities, new ventures, assets performance, hedging strategies, Capex funding, geographical results of oil and gas operations.
Goals and Strategies: This section provides the upcoming goals and strategies of the company. The section mainly goals and strategies followed by the company in order to meet its upcoming goals.
SWOT: The report's SWOT section provides the internal strength, weakness, opportunities and threats of company to reflect its strategic positions in the market.
Production and Development Overview: This section highlights the company's crude oil and natural gas production forecast from its legacy and upcoming assets by region and commodity mix for next five years. The report also covers the detailed information and analysis on the company's producing and development assets.
Exploration: This section includes detailed explanation and analysis on the company's exploration assets resulted due to new discoveries, new drilling and other activities.
M&A trends: This section mainly provides information and analysis on the company's recent assets transactions, joint ventures, acquisition, and divestment activities during the last one year. This section highlights the company's status as a buyer or seller during the analyzed period.
Financial Forecast and Valuation: This section highlights the detailed financial statement forecast for next five years. With the financial statement forecast, this section also provides intrinsic value of the company by using Net Asset Valuation method.
Peer Group Analysis: This section compares the company's performance with its peer group on the basis of share prices, financial ratios, operational and financial parameters and other related parameters.
Financial and Operational Metrics: This section covers the company's historical performance on several financial and operational parameters such as Production and Reserves, Reserves Replacement, Costs Incurred, Acreage, Wells, F&D Costs, Oil and Gas Revenue and Expenses etc.
Reasons to buy
The report will enhance the decision-making capability in a more rapid and time sensitive manner. It will allow you to -
Provide detailed analysis to those who are interested in knowing the companies' existing and future business strategies.
Provide in-depth analysis on the companies E&P profiles along with the exploration and M&A updates.
Provide valuable insights to those who are tracking oil and gas markets and wants to know the intrinsic value of the companies.
Use the analysis for strategy and planning, M&A identifications, and competitor analysis.
Valuation Report, NAV, Oil and gas valuation, Strategic Evaluation, Strategic and Operational Analysis, Forecasted financial Statements, SWOT, Capital expenditure, Market Scenario, Revenue, Financial Ratios, Production, Reserves, Peer Group Comparison, DCF, Outlook, Investment Thesis, Investment Summary, Hess
Table of Contents
1 Table of contents
1 Table of contents 3
1.1 List of Tables 5
1.2 List of Figures 6
2 Hess Corporation, Company Overview 8
3 Hess Corporation, Investment Summary 12
3.1 Hess Has Been Exploring Unconventional Oil and Natural Gas Resources to Map Long Term Growth 12
3.2 Offsetting the Decline in Production through Development of Core Conventional Assets 16
3.2.1 Norway - Valhall and Hod Field 16
3.2.2 Australia - WA-390P 17
3.2.3 Malaysia/Thailand Joint Development Area 18
3.2.4 Equatorial Guinea Block G 19
3.2.5 US - Gulf of Mexico 19
3.2.6 Ghana - Tano Cape Three Points 19
3.2.7 Indonesia - Ujung Pangkah project and Natuna A Field 19
3.2.8 Brunei - Block CA-1 19
3.2.9 Kurdistan - Dinarta and Shakrok. 19
3.3 Managing Liquidity through all available sources of fund: Still Liquidity is an issue going forward 20
4 Hess Corporation, SWOT Analysis 22
4.1 Strength 22
4.1.1 Consistent Growth in its Reserve Base Achieved through Organic Reserve Additions 22
4.1.2 Technical Expertise to Support Development Activities 23
4.1.3 Globally Diversified Oil and Gas Portfolio 23
4.2 Weaknesses 23
4.2.1 Continuous Decline in Production from Major Geography of Operations 23
4.3 Opportunities 24
4.3.1 Focusing on Unconventional Sources 24
4.3.2 Excellent Potentials of Unconventional Resources 24
4.4 Threats 24
4.4.1 Inconsistent Operational Performance Can Adversely Impact Its Growth 24
5 Hess Corporation, Goals and Strategies 25
5.1 Sustainable Long-term Growth Primarily through Unconventional Resources Development 25
5.2 Hess Plans to Strengthen its Brand on East Coast and Generate Cash Flows Through Selective Growth 25
5.3 Develop Other Conventional Assets through JVs and Aggressive Exploration and Development Programs 26
6 Hess Corporation, Production Overview 27
6.1 Production Profile 27
6.2 The US 28
6.3 Europe 28
6.4 Africa 28
6.5 Asia Pacific and Others 29
7 Hess Corporation, Exploration and Development Overview 30
7.1 The US 31
7.2 Europe 31
7.3 Asia 31
7.4 Africa 32
8 Hess Corporation, Capital Expenditure 33
8.1 Costs Incurred 34
9 Hess Corporation, Acreage 36
10 Hess Corporation, M&A Highlights 38
11 Hess Corporation, Downstream Updates 41
12 Hess Corporation, Forecast Production and Financial Statements 42
12.1 Income Statement (2009-2016) 43
12.2 Balance Sheet (2009-2016) 44
12.3 Cash Flow Statement (2006-2016) 46
12.4 Financial Ratios 47
13 Hess Corporation, Valuation 49
13.1 Net Asset Value 49
14 Hess Corporation, Peer Comparision 51
14.1 Share Price Performance 51
14.2 Operational and Financial Performance 52
14.3 Key Financial and Operational Ratio 55
15 Hess Corporation, Production and Reserves Trends 57
15.1 Total Oil and Gas, Reserves and Production 57
15.1.1 Total Crude Oil and Natural Gas Production and Reserves Trend, 2007-2011 57
15.1.2 Total Crude Oil & Natural Gas Production and Reserves By Country/Region, 2007-2011 58
15.1.3 Total Crude Oil and Natural Gas Reserve Changes, 2007-2011 60
15.2 Hess Corporation, Crude Oil/Liquids Production and Reserve 61
15.2.1 Crude Oil/Liquids Production and Reserve Trend, 2007-2011 61
15.2.2 Crude Oil Production and Reserves By Country/Region, 2007-2011 62