Replies to post #9595 on The Rising Influence of Rising Affluence

[jbog]

Hess,

Not the best time to be the 'oilest' company out there.

On the other hand their balance sheet will let them ride this out. 3, 5 or maybe even 10 (ugh) years.

We'll see.

[DewDiligence]

HES slides from CS webcast:

http://cc.talkpoint.com/cred001/022315a_ae/content/29_8DRW3XB/29_8DRW3XB.pdf

[DewDiligence]

HES—The author of this article evidently doesn’t realize that Elliott was the activist investor that got the company to change its stripes:

http://www.insidermonkey.com/blog/hess-corp-chevron-nobleenergy-billionaire-paul-singer-is-bullish-and-bearish-about-these-energy-stocks-339683/2/#hXQ8kcDqi7yhFZ7D.99

Hess Corp. was not only one of Elliot Management’s top picks last quarter, but was actually the largest position in its equity portfolio, with 18.8 million shares.

There’s so much vacuous stuff on the internet about investments.

[DewDiligence]

HES +1% on cost-cutting initiatives and 1Q15 production above guidance:

http://finance.yahoo.com/news/hess-reports-estimated-results-first-113000098.html

2015 cap-ex (including exploration) will be reduced by about 1/3 relative to 2014, and HES has obtained 10-30% cost reductions from its suppliers* and service companies to retain positive cash margins for all producing fields.

HES has reduced the Bakken rig count to 8 (from 17 in 2013 and 14 in 2014) by drilling in only the core acreage, and it now projects merely keeping Bakken production flat until prices improve.

All told, the company appears to be operating as though it expects $60/bbl oil to be the ceiling for some time. HES is cash-negative after cap-ex at $60/bbl, but it will try to keep the deficit as small as possible, so there will be no dividend increases or share buybacks in the near future.

*Notably for I-O and steel investors, HES’ price reduction on steel tubing has been ~10%, the smallest discount for any of the input items where HES has obtained a price cut.