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Hess

DB:AHC
Snowflake Description

Mediocre balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AHC
DB
$11B
Market Cap
  1. Home
  2. DE
  3. Energy
Company description

Hess Corporation, an exploration and production company, explores, develops, produces, purchases, transports, and sells crude oil, natural gas liquids (NGLs), and natural gas. The last earnings update was 48 days ago. More info.


Add to Portfolio Compare Print
  • Hess has significant price volatility in the past 3 months.
AHC Share Price and Events
7 Day Returns
6.6%
DB:AHC
8.7%
DE Oil and Gas
4.3%
DE Market
1 Year Returns
-42.3%
DB:AHC
34.4%
DE Oil and Gas
-14.2%
DE Market
AHC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Hess (AHC) 6.6% -20.7% -47.6% -42.3% -33.6% -55.8%
DE Oil and Gas 8.7% -2.8% -19.4% 34.4% -14.7% 157%
DE Market 4.3% -9% -21.6% -14.2% -19.6% -25.6%
1 Year Return vs Industry and Market
  • AHC underperformed the Oil and Gas industry which returned 34.4% over the past year.
  • AHC underperformed the Market in Germany which returned -14.2% over the past year.
Price Volatility
AHC
Industry
5yr Volatility vs Market

Value

 Is Hess undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Hess to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Hess.

DB:AHC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 16 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:AHC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 5.4%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.97
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.972 (1 + (1- 21%) (73.96%))
1.362
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.36
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (1.362 * 5.44%)
7.02%

Discounted Cash Flow Calculation for DB:AHC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Hess is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:AHC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.02%)
2020 -686.27 Analyst x7 -641.27
2021 -762.57 Analyst x9 -665.83
2022 -172.37 Analyst x3 -140.63
2023 -67.55 Analyst x2 -51.50
2024 561.90 Analyst x1 400.28
2025 971.36 Est @ 72.87% 646.59
2026 1,465.72 Est @ 50.89% 911.68
2027 1,986.16 Est @ 35.51% 1,154.38
2028 2,477.51 Est @ 24.74% 1,345.52
2029 2,903.64 Est @ 17.2% 1,473.53
Present value of next 10 years cash flows $4,432.00
DB:AHC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $2,903.64 × (1 + -0.39%) ÷ (7.02% – -0.39%)
$39,041.10
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $39,041.10 ÷ (1 + 7.02%)10
$19,812.46
DB:AHC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $4,432.00 + $19,812.46
$24,244.46
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $24,244.46 / 305.21
$79.43
DB:AHC Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:AHC represents 0.82185x of NYSE:HES
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.82185x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 79.43 x 0.82185
€65.28
Value per share (EUR) From above. €65.28
Current discount Discount to share price of €32.20
= -1 x (€32.20 - €65.28) / €65.28
50.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Hess is available for.
Intrinsic value
>50%
Share price is €32.2 vs Future cash flow value of €65.28
Current Discount Checks
For Hess to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Hess's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Hess's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Hess's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Hess's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:AHC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $-1.37
NYSE:HES Share Price ** NYSE (2020-04-08) in USD $39.18
Europe Oil and Gas Industry PE Ratio Median Figure of 104 Publicly-Listed Oil and Gas Companies 6.5x
Germany Market PE Ratio Median Figure of 402 Publicly-Listed Companies 17.07x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Hess.

DB:AHC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:HES Share Price ÷ EPS (both in USD)

= 39.18 ÷ -1.37

-28.64x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hess is loss making, we can't compare its value to the Europe Oil and Gas industry average.
  • Hess is loss making, we can't compare the value of its earnings to the Germany market.
Price based on expected Growth
Does Hess's expected growth come at a high price?
Raw Data
DB:AHC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -28.64x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts
46.6%per year
Europe Oil and Gas Industry PEG Ratio Median Figure of 66 Publicly-Listed Oil and Gas Companies 0.32x
Germany Market PEG Ratio Median Figure of 256 Publicly-Listed Companies 1.24x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Hess, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Hess's assets?
Raw Data
DB:AHC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $28.63
NYSE:HES Share Price * NYSE (2020-04-08) in USD $39.18
Germany Oil and Gas Industry PB Ratio Median Figure of 6 Publicly-Listed Oil and Gas Companies 1.01x
Germany Market PB Ratio Median Figure of 573 Publicly-Listed Companies 1.47x
DB:AHC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:HES Share Price ÷ Book Value per Share (both in USD)

= 39.18 ÷ 28.63

1.37x

* Primary Listing of Hess.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hess is overvalued based on assets compared to the DE Oil and Gas industry average.
X
Value checks
We assess Hess's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. Hess has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Hess expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
46.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Hess expected to grow at an attractive rate?
  • Hess's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Hess's earnings growth is expected to exceed the Germany market average.
  • Hess's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:AHC Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:AHC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts 46.6%
DB:AHC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 16 Analysts 2.7%
Europe Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average 13.8%
Europe Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 1.8%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.1%
Germany Market Revenue Growth Rate Market Cap Weighted Average 3.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:AHC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:AHC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 7,636 5,857 1,779 1
2023-12-31 7,869 4,662 1,181 2
2022-12-31 6,291 2,751 76 4
2021-12-31 5,415 1,442 -1,043 10
2020-12-31 5,866 1,921 -831 10
2020-04-08
DB:AHC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 6,311 1,642 -412
2019-09-30 6,287 2,237 -206
2019-06-30 6,500 2,217 -47
2019-03-31 6,378 1,967 -183
2018-12-31 6,152 1,939 -328
2018-09-30 6,177 1,401 -3,001
2018-06-30 5,752 1,066 -3,583
2018-03-31 5,427 806 -3,901
2017-12-31 5,347 945 -4,120
2017-09-30 5,076 928 -6,334
2017-06-30 4,905 1,172 -6,050
2017-03-31 4,934 1,204 -5,994

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Hess's earnings are expected to grow significantly at over 20% yearly.
  • Hess's revenue is expected to grow by 2.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:AHC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below

All data from Hess Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:AHC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31 7.21 12.87 1.87 3.00
2023-12-31 4.09 8.12 1.08 4.00
2022-12-31 0.48 3.52 -1.04 5.00
2021-12-31 -3.45 -1.62 -5.99 13.00
2020-12-31 -2.68 -0.48 -5.93 14.00
2020-04-08
DB:AHC Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 -1.37
2019-09-30 -0.69
2019-06-30 -0.16
2019-03-31 -0.62
2018-12-31 -1.10
2018-09-30 -9.88
2018-06-30 -11.60
2018-03-31 -12.46
2017-12-31 -13.12
2017-09-30 -20.17
2017-06-30 -19.28
2017-03-31 -19.12

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Hess will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.
X
Future performance checks
We assess Hess's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Hess has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Hess performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Hess's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Hess does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Hess's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Hess's 1-year growth to the Europe Oil and Gas industry average as it is not currently profitable.
Earnings and Revenue History
Hess's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Hess Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:AHC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 6,311.00 -412.00 1,850.00
2019-09-30 6,287.00 -206.00 1,796.00
2019-06-30 6,500.00 -47.00 1,851.00
2019-03-31 6,378.00 -183.00 1,907.00
2018-12-31 6,152.00 -328.00 1,824.00
2018-09-30 6,177.00 -3,001.00 1,907.00
2018-06-30 5,752.00 -3,583.00 1,892.00
2018-03-31 5,427.00 -3,901.00 1,936.00
2017-12-31 5,347.00 -4,120.00 2,049.00
2017-09-30 5,076.00 -6,334.00 2,295.00
2017-06-30 4,905.00 -6,050.00 2,393.00
2017-03-31 4,934.00 -5,994.00 2,542.00
2016-12-31 4,661.00 -6,173.00 2,690.00
2016-09-30 4,738.00 -3,083.00 2,644.00
2016-06-30 5,230.00 -2,998.00 2,856.00
2016-03-31 5,942.00 -3,147.00 2,893.00
2015-12-31 6,490.00 -3,008.00 2,929.00
2015-09-30 7,543.00 -1,201.00 2,880.00
2015-06-30 8,510.00 -598.00 2,973.00
2015-03-31 9,353.00 930.00 3,018.00
2014-12-31 10,462.00 1,635.00 3,020.00
2014-09-30 10,558.00 2,569.00 3,173.00
2014-06-30 10,585.00 2,590.00 3,003.00
2014-03-31 10,806.00 3,030.00 3,115.00
2013-12-31 11,533.00 3,866.00 3,436.00
2013-09-30 23,444.00 3,214.00 3,162.00
2013-06-30 23,736.00 3,331.00 3,344.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Hess has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Hess has efficiently used its assets last year compared to the Europe Oil and Gas industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Hess improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Hess's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Hess has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Hess's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Hess's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Hess is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Hess's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Hess's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Hess Company Filings, last reported 3 months ago.

DB:AHC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 9,706.00 7,142.00 1,545.00
2019-09-30 10,177.00 6,541.00 1,863.00
2019-06-30 10,531.00 6,525.00 2,208.00
2019-03-31 10,553.00 6,563.00 2,300.00
2018-12-31 10,888.00 6,405.00 2,694.00
2018-09-30 11,046.00 6,699.00 3,004.00
2018-06-30 11,336.00 6,444.00 2,908.00
2018-03-31 11,937.00 6,572.00 3,726.00
2017-12-31 12,354.00 6,977.00 4,847.00
2017-09-30 14,428.00 6,714.00 2,526.00
2017-06-30 15,078.00 6,733.00 2,493.00
2017-03-31 15,233.00 6,785.00 2,686.00
2016-12-31 15,591.00 6,806.00 2,732.00
2016-09-30 20,915.00 7,337.00 3,532.00
2016-06-30 21,174.00 6,552.00 3,115.00
2016-03-31 21,634.00 6,592.00 3,572.00
2015-12-31 20,401.00 6,592.00 2,716.00
2015-09-30 22,363.00 6,552.00 3,013.00
2015-06-30 21,103.00 5,957.00 931.00
2015-03-31 21,667.00 5,980.00 1,506.00
2014-12-31 22,320.00 5,987.00 2,444.00
2014-09-30 24,365.00 5,996.00 4,120.00
2014-06-30 24,354.00 6,077.00 2,205.00
2014-03-31 24,242.00 5,576.00 1,288.00
2013-12-31 24,784.00 5,798.00 1,814.00
2013-09-30 23,842.00 6,209.00 321.00
2013-06-30 23,973.00 5,800.00 725.00
  • Hess's level of debt (73.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (26.2% vs 73.6% today).
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Hess has sufficient cash runway for 1.3 years based on current free cash flow.
  • Hess has sufficient cash runway for 2.6 years if free cash flow continues to reduce at historical rates of -8% each year.
X
Financial health checks
We assess Hess's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Hess has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Hess's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.55%
Current annual income from Hess dividends. Estimated to be 2.58% next year.
If you bought €2,000 of Hess shares you are expected to receive €51 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Hess's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.63%).
  • Hess's dividend is below the markets top 25% of dividend payers in Germany (4.61%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:AHC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
Europe Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 68 Stocks 8.1%
Germany Market Average Dividend Yield Market Cap Weighted Average of 314 Stocks 3.6%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.6%
Germany Top 25% Dividend Yield 75th Percentile 4.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:AHC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-12-31 1.00 1.00
2023-12-31 1.00 2.00
2022-12-31 1.00 8.00
2021-12-31 1.02 11.00
2020-12-31 1.01 12.00
2020-04-08
DB:AHC Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-03-04 1.000 2.857
2019-12-04 1.000 1.597
2019-09-04 1.000 1.531
2019-06-05 1.000 1.645
2019-03-06 1.000 1.631
2018-12-06 1.000 1.961
2018-09-05 1.000 1.610
2018-06-06 1.000 1.552
2018-03-07 1.000 1.801
2017-12-06 1.000 2.094
2017-09-06 1.000 2.249
2017-06-07 1.000 2.376
2017-03-01 1.000 2.076
2016-12-07 1.000 1.743
2016-09-07 1.000 1.974
2016-06-01 1.000 1.779
2016-03-02 1.000 1.816
2015-12-02 1.000 2.289
2015-09-09 1.000 1.750
2015-06-03 1.000 1.637
2015-03-04 1.000 1.404
2014-12-03 1.000 1.387
2014-09-03 1.000 1.158
2014-06-04 1.000 1.017
2014-03-05 1.000 1.166
2013-12-04 1.000 1.262
2013-03-07 1.000 1.357
2013-03-06 0.400 0.577
2012-12-05 0.400 0.679
2012-09-05 0.400 0.761
2012-06-06 0.400 0.871
2012-03-07 0.400 0.757
2011-12-07 0.400 0.673
2011-09-08 0.400 0.684
2011-06-01 0.400 0.606
2011-03-02 0.400 0.497
2010-12-01 0.400 0.506
2010-09-08 0.400 0.637
2010-06-02 0.400 0.756
2010-03-03 0.400 0.665
2009-12-03 0.400 0.672
2009-09-09 0.400 0.706
2009-06-05 0.400 0.758

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Hess's earnings are paid to the shareholders as a dividend.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (0.3x coverage).
X
Income/ dividend checks
We assess Hess's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Hess afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Hess has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Hess's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
John Hess
COMPENSATION $12,572,440
AGE 65
TENURE AS CEO 24.9 years
CEO Bio

Mr. John B. Hess has been the Chief Executive Officer at Hess Corporation since May 3, 1995. Mr. Hess has been the Chairman of the Board of Directors and Chief Executive Officer of Hess Midstream GP LLC, the general partner of Hess Infrastructure Partners GP LLC at Hess Midstream Operations LP since September 2014 and July 2014 respectively. Mr. Hess serves on the Secretary of Energy Advisory Board Quadrennial Review Task Force. Mr. Hess has been with Hess Corporation for 28 years and has strong background in the global oil and gas industry. He provides significant value to the oversight and development of Kohlberg Kravis Roberts business and served leadership roles at a global energy business. Mr. Hess led the Fortune 100 Company through a strategic transformation from integrated oil company to pure play exploration and production company. Mr. Hess served as the Chairman of Hess Corporation from May 3, 1995 to May 16, 2013. He is the Trustee of The New York Public Library, Astor, Lenox and Tilden Foundations. Mr. Hess serves as Vice Chairman of Lincoln Center for the Performing Arts, Inc. and has been its Director since 2007. He serves as a Trustee of Center for Strategic and International Studies, Inc. Mr. Hess has been a Director of Hess Corporation since 1978. He has been a Director of the Trilateral Commission since 2009. Mr. Hess has been a Director and Member of Board of Trustees at Deerfield Academy since 2004. He has been an Independent Director of KKR Management LLC and KKR & Co. Inc. (formerly, KKR & Co. L.P.) since July 28, 2011. He has been a Director of National Advisory Board of J.P. Morgan Chase & Co. since 1991. Mr. Hess has been a Member of Board of Trustees at Wildlife Conservation Society/NY Zoo since 1991, United Cerebral Palsy Research and Educational Foundation. Mr. Hess has been a Trustee of The Mount Sinai Hospital since 1988 and New York Public Library since 2008. He is a member of the Business Council, the Trilateral Commission and the Council on Foreign Relations and he serves on the Executive Committee of the American Petroleum Institute. Mr. Hess has almost 40 years of experience with the company. During his career, Mr. Hess has acquired in-depth knowledge of the company’s strategy and operations and the history of the company’s development, and he and his family have had a long-standing commitment to the company. He is a member of Dean's Advisors of Harvard Business School since 2001. He is also Chair of the Harvard Business School Campaign. He served as a Director of NYC2012, Inc. He served as a Director of The Dow Chemical Company since October 12, 2006 until May 9, 2013. Mr. Hess served as a Member of the Secretary of Energy Advisory Board from 1999 to 2002. He earned an M.B.A. from Harvard Business School in 1977 and a B.A. from Harvard College in 1975.

CEO Compensation
  • John's compensation has been consistent with company performance over the past year, both up more than 20%.
  • John's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Hess management team in years:

3.9
Average Tenure
62
Average Age
  • The tenure for the Hess management team is about average.
Management Team

John Hess

TITLE
CEO & Director
COMPENSATION
$13M
AGE
65
TENURE
24.9 yrs

Greg Hill

TITLE
President & COO
COMPENSATION
$9M
AGE
58

John Rielly

TITLE
Senior VP & CFO
COMPENSATION
$4M
AGE
57
TENURE
16 yrs

Tim Goodell

TITLE
Senior VP
COMPENSATION
$4M
AGE
62
TENURE
11.3 yrs

Richard Lynch

TITLE
Senior Vice President of Technology & Services
AGE
62
TENURE
2.3 yrs

Jay Wilson

TITLE
Vice President of Investor Relations
AGE
73
TENURE
16.8 yrs

Lorrie Hecker

TITLE
VP of Communications
TENURE
2.7 yrs

Andy Slentz

TITLE
Senior VP of Human Resources & Office Management
AGE
57
TENURE
3.9 yrs

Jonathan Stein

TITLE
VP, CFO of Midstream & Chief Risk Officer
TENURE
3.3 yrs

C. Dunagin

TITLE
Chief Tax Executive
TENURE
2.3 yrs
Board of Directors Tenure

Average tenure and age of the Hess board of directors in years:

6.9
Average Tenure
66.5
Average Age
  • The tenure for the Hess board of directors is about average.
Board of Directors

Jim Quigley

TITLE
Independent Chairman
COMPENSATION
$508K
AGE
67
TENURE
4.1 yrs

John Hess

TITLE
CEO & Director
COMPENSATION
$13M
AGE
65
TENURE
42.3 yrs

Ede Holiday

TITLE
Independent Director
COMPENSATION
$305K
AGE
67
TENURE
27.3 yrs

Risa Lavizzo-Mourey

TITLE
Independent Director
COMPENSATION
$305K
AGE
64
TENURE
15.8 yrs

Terry Checki

TITLE
Independent Director
COMPENSATION
$305K
AGE
73
TENURE
5.9 yrs

Kevin Meyers

TITLE
Independent Director
COMPENSATION
$343K
AGE
65
TENURE
6.9 yrs

Bill Schrader

TITLE
Independent Director
COMPENSATION
$316K
AGE
61
TENURE
6.9 yrs

Rodney Chase

TITLE
Independent Director
COMPENSATION
$340K
AGE
76
TENURE
6.9 yrs

David McManus

TITLE
Independent Director
COMPENSATION
$300K
AGE
66
TENURE
6.9 yrs

Len Coleman

TITLE
Independent Director
COMPENSATION
$301K
AGE
70
TENURE
3.6 yrs
Who owns this company?
Recent Insider Trading
  • Hess individual insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
10. Mar 20 Sell Gregory Hill Individual 09. Mar 20 09. Mar 20 -7,172 €28.33 €-203,217
10. Mar 20 Buy Marc Lipschultz Individual 06. Mar 20 06. Mar 20 503 €43.91 €22,086
10. Mar 20 Buy Terrence Checki Individual 06. Mar 20 06. Mar 20 503 €43.91 €22,086
10. Mar 20 Buy Kevin Meyers Individual 06. Mar 20 06. Mar 20 503 €43.91 €22,086
10. Mar 20 Buy William Schrader Individual 06. Mar 20 06. Mar 20 503 €43.91 €22,086
10. Mar 20 Buy Joaquin Duato Individual 06. Mar 20 06. Mar 20 503 €43.91 €22,086
10. Mar 20 Buy Leonard Coleman Individual 06. Mar 20 06. Mar 20 503 €43.91 €22,086
10. Mar 20 Buy David McManus Individual 06. Mar 20 06. Mar 20 503 €43.91 €22,086
10. Mar 20 Buy Edith Holiday Individual 06. Mar 20 06. Mar 20 503 €43.91 €22,086
10. Mar 20 Sell John Rielly Individual 09. Mar 20 09. Mar 20 -3,778 €28.33 €-107,049
10. Mar 20 Sell Timothy Goodell Individual 09. Mar 20 09. Mar 20 -3,968 €28.33 €-112,432
10. Mar 20 Sell Richard Lynch Individual 09. Mar 20 09. Mar 20 -1,898 €28.33 €-53,779
10. Mar 20 Sell Andrew Slentz Individual 09. Mar 20 09. Mar 20 -1,898 €28.33 €-53,779
10. Mar 20 Sell Geurt Schoonman Individual 09. Mar 20 09. Mar 20 -3,779 €28.33 €-107,077
10. Mar 20 Sell Barbara Lowery-Yilmaz Individual 09. Mar 20 09. Mar 20 -2,353 €28.33 €-66,672
10. Mar 20 Sell Michael Turner Individual 09. Mar 20 09. Mar 20 -2,353 €28.33 €-66,672
26. Dec 19 Sell Gregory Hill Individual 23. Dec 19 23. Dec 19 -4,000 €59.93 €-239,735
18. Sep 19 Sell Michael Turner Individual 16. Sep 19 16. Sep 19 -10,955 €62.74 €-687,335
18. Sep 19 Sell Gregory Hill Individual 16. Sep 19 16. Sep 19 -17,750 €64.51 €-1,144,977
18. Sep 19 Sell Barbara Lowery-Yilmaz Individual 16. Sep 19 16. Sep 19 -19,189 €64.24 €-1,232,741
15. Aug 19 Sell Michael Turner Individual 13. Aug 19 13. Aug 19 -11,258 €55.14 €-620,742
08. Aug 19 Sell Barbara Lowery-Yilmaz Individual 06. Aug 19 06. Aug 19 -7,305 €51.07 €-373,090
08. Aug 19 Sell Michael Turner Individual 06. Aug 19 06. Aug 19 -7,305 €51.07 €-373,090
08. May 19 Sell Andrew Slentz Individual 06. May 19 06. May 19 -2,081 €55.83 €-116,183
X
Management checks
We assess Hess's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Hess has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Hess Corporation, an exploration and production company, explores, develops, produces, purchases, transports, and sells crude oil, natural gas liquids (NGLs), and natural gas. It operates through two segments, Exploration and Production, and Midstream. The company conducts production operations primarily in the United States, Denmark, the Malaysia/Thailand Joint Development Area, and Malaysia; and exploration activities primarily offshore Guyana, Suriname, Canada, and in the Gulf of Mexico. As of December 31, 2019, it had total proved reserves of 1,197 million barrels of oil equivalent. The company is also involved in the gathering, compressing, and processing of natural gas; fractionating NGLs; terminaling, loading, and transporting crude oil and NGLs through rail car; storing and terminaling propane, as well as providing water handling services primarily in the Bakken Shale plays in the Williston Basin area of North Dakota. The company was founded in 1920 and is headquartered in New York, New York.

Details
Name: Hess Corporation
AHC
Exchange: DB
Founded: 1920
$9,862,866,162
305,212,573
Website: http://www.hess.com
Address: Hess Corporation
1185 Avenue of the Americas,
40th Floor,
New York,
New York, 10036,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE HES Common Stock New York Stock Exchange US USD 01. Mar 1964
DB AHC Common Stock Deutsche Boerse AG DE EUR 01. Mar 1964
XTRA AHC Common Stock XETRA Trading Platform DE EUR 01. Mar 1964
LSE 0J50 Common Stock London Stock Exchange GB USD 01. Mar 1964
BRSE AHC Common Stock Berne Stock Exchange CH CHF 01. Mar 1964
ETLX AHC Common Stock Eurotlx IT EUR 01. Mar 1964
BOVESPA H1ES34 BDR EACH 2 REPR 1 SHS UNSPON Bolsa de Valores de Sao Paulo BR BRL 27. Jan 2020
Number of employees
Current staff
Staff numbers
1,775
Hess employees.
Industry
Oil and Gas Exploration and Production
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/08 22:02
End of day share price update: 2020/04/08 00:00
Last estimates confirmation: 2020/04/08
Last earnings filing: 2020/02/20
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.