In a recent transaction, Geurt G. Schoonman, Senior Vice President of Hess Corp (NYSE:HES), sold 6,000 shares of the company's common stock on November 7, 2024. The shares were sold at an average price of $141.91, amounting to a total value of approximately $851,460. Following this sale, Schoonman holds 27,581 shares directly.
Additionally, 2,880 shares were withheld to satisfy tax obligations related to the vesting of restricted stock, valued at $142.75 per share, totaling $411,120. After these transactions, Schoonman's total direct ownership stands at 24,701 shares. This figure includes 11,267 shares held in escrow under the company's Long Term Incentive Plans, which Schoonman can vote on but will not receive until the plan's conditions are met.
In other recent news, Hess Corporation (NYSE:HES) reported better-than-expected third quarter results, with an increase in net production of 17% year-over-year to 461,000 barrels of oil equivalent per day. The company's earnings per share for the third quarter stood at $2.14, surpassing the consensus estimate by $0.37. Despite a decrease in realized crude oil selling prices, Hess has raised its 2024 capital expenditure forecast to $4.9 billion. The company also announced a 14% dividend increase.
On the other hand, Chevron Corporation (NYSE:CVX) has been facing challenges, most notably the delay in the $53 billion acquisition of Hess Corporation. The acquisition, which would provide Chevron with a 30% interest in a high-yield Guyana oilfield, has been stalled due to a challenge from Exxon (NYSE:XOM).
CFRA, an independent financial research firm, has revised the stock price target for Hess Corp downward to $145.00 from the previous $150.00, reflecting heightened regulatory risk considerations. The firm also revised its earnings per share estimates for Hess Corp for 2024 and 2025.
These are recent developments for both Chevron Corporation and Hess Corporation. The resolution of the legal dispute over the Guyana stake, expected in late 2025, will add an element of certainty to Hess Corp's outlook.
InvestingPro Insights
As Hess Corp's Senior Vice President Geurt G. Schoonman reduces his stake, investors might be curious about the company's current financial standing and future prospects. According to InvestingPro data, Hess Corp boasts a market capitalization of $43.25 billion, reflecting its significant presence in the energy sector.
The company's P/E ratio of 16.38 suggests a reasonable valuation relative to its earnings, particularly when considering the PEG ratio of 0.21, which indicates the stock may be undervalued given its growth potential. This aligns with an InvestingPro Tip noting that Hess is "trading at a low P/E ratio relative to near-term earnings growth."
Hess Corp has demonstrated strong financial performance, with a revenue growth of 21.35% over the last twelve months and an impressive EBITDA growth of 36.29% during the same period. These figures underscore the company's ability to expand its operations and improve profitability in a dynamic energy market.
An InvestingPro Tip highlights that Hess "has maintained dividend payments for 38 consecutive years," which may be particularly appealing to income-focused investors. The current dividend yield stands at 1.42%, with a notable dividend growth of 14.29% over the last twelve months, indicating the company's commitment to shareholder returns.
For those interested in a deeper analysis, InvestingPro offers additional insights with 8 more tips available for Hess Corp, providing a comprehensive view of the company's financial health and market position.
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