Hess Corporation (HES) - Financial and Strategic SWOT Analysis Review
Reference Code: GDGE1146FSA Publication Date: APR 2011
1185 Avenue of the Americas Phone +1 212 9978500 Revenue 34,613 (million USD)
New York, NY Fax +1 212 5368390 Net Profit 2,125 (million USD)
10036 Website www.hess.com Employees 13,800
United States Exchange HES [New York Stock Exchange] Industry Energy and Utilities
Company Overview
Hess Corporation (Hess) is an integrated energy company. It engages in the exploration, production, purchase, transportation
and sale of crude oil and natural gas. It also produces and markets refined petroleum products, natural gas and electricity. The
company has operations in the US, the UK, Norway, Denmark, Equatorial Guinea, Gabon, Azerbaijan, Thailand, Indonesia,
Russia, Algeria, Libya, Egypt, Ghana, Malaysia, Australia, Brazil and St. Lucia.. Hess owns 50% interest of a refinery joint
venture in the US Virgin Islands, and another refining facility, terminals and retail gasoline stations, located on the East Coast of
the US. It was formerly known as Amerada Hess Corporation.
Key Executives SWOT Analysis
Name Title Hess Corporation, SWOT Analysis
John B. Hess Chairman Strengths Weaknesses
F. Borden Walker Director
Substantial Reserve Base Limited Liquidity Position
Gregory P. Hill Director
Nicholas F. Brady Director Strong Refinery and Retail Litigations and Legal Issues
Marketing Business
Edith E. Holiday Director
Source: Annual Report, Company Website, Primary and Secondary Research,
GlobalData
Share Data Opportunities Threats
Hess Corporation Potential Growth for US Energy Policy and
Share Price (USD) as on 04-Apr-2011 85.88 Unconventional Oil and Gas Increasing Tax Burden
EPS (USD) 6.47
Asset Portfolio Management Stringent Regulations
Market Cap (million USD) 27,636 and Optimization
Enterprise Value (million USD) 31,709
Shares Outstanding (million) 338
Source: Annual Report, Company Website, Primary and Secondary Research, Source: Annual Report, Company Website, Primary and Secondary
Research, GlobalData
GlobalData
Financial Performance Recent Developments
Mar 04, 2011 Sundance Energy Provides Operations
Update
Feb 25, 2011 Calmena Energy Services Updates On
Operations In Libya
Feb 23, 2011 NOVA Chemicals Announces Definitive
Agreements For Ethane Supply For Joffre
Petrochemical Complex
Feb 21, 2011 Montenegro Attracts 15 Companies For
Offshore Oil And Gas Concessions
Feb 18, 2011 Statoil Drills Dry Well South Of Snohvit
Source: Annual Report, Company Website, Primary and Secondary Research,
GlobalData Field In Barents Sea
Source: Annual Report, Company Website, Primary and Secondary
Research, GlobalData
Hess Corporation (HES) - Financial and Strategic SWOT Analysis Review Reference Code: GDGE1146FSA
Source : www.globalcompanyintelligence.com Page 1
Table of Contents
Table of Contents........................................................................................................................................................................................................... 2
List of Tables .................................................................................................................................................................................................................. 4
List of Figures................................................................................................................................................................................................................. 5
Section 1 - About the Company ..................................................................................................................................................................................... 6
Hess Corporation - Key Facts ........................................................................................................................................................................................ 6
Hess Corporation - Key Employees ............................................................................................................................................................................... 7
Hess Corporation - Key Employee Biographies............................................................................................................................................................. 9
Hess Corporation - Major Products and Services ........................................................................................................................................................ 10
Hess Corporation - Key Operational Summary............................................................................................................................................................ 11
Hess Corporation - History........................................................................................................................................................................................... 12
Hess Corporation - Company Statement ..................................................................................................................................................................... 15
Hess Corporation - Locations And Subsidiaries........................................................................................................................................................... 18
Head Office............................................................................................................................................................................................................ 18
Other Locations & Subsidiaries ............................................................................................................................................................................. 18
Joint Venture.......................................................................................................................................................................................................... 20
Section 2 – Company Analysis .................................................................................................................................................................................... 21
Hess Corporation - Business Description .................................................................................................................................................................... 21
Business Description - Exploration and Production............................................................................................................................................... 21
Exploration and Production - Overview........................................................................................................................................................... 21
Exploration and Production - Production......................................................................................................................................................... 21
Exploration and Production - Financials.......................................................................................................................................................... 21
Exploration and Production - Capital Expenditure .......................................................................................................................................... 21
Business Description - Marketing and Refining ..................................................................................................................................................... 21
Marketing and Refining - Overview ................................................................................................................................................................. 21
Marketing and Refining - Production............................................................................................................................................................... 22
Marketing and Refining - Financials................................................................................................................................................................ 22
Marketing and Refining - Capital Expenditure................................................................................................................................................. 22
Hess Corporation - Corporate Strategy........................................................................................................................................................................ 23
Hess Corporation - SWOT Analysis............................................................................................................................................................................. 24
SWOT Analysis - Overview ................................................................................................................................................................................... 24
Hess Corporation - Strengths ................................................................................................................................................................................ 24
Strength - Substantial Reserve Base .............................................................................................................................................................. 24
Strength - Strong Refinery and Retail Marketing Business............................................................................................................................. 24
Strength - Improving Profitability Ratios.......................................................................................................................................................... 24
Hess Corporation - Weaknesses ........................................................................................................................................................................... 24
Weakness - Limited Liquidity Position............................................................................................................................................................. 24
Weakness - Litigations and Legal Issues........................................................................................................................................................ 24
Hess Corporation - Opportunities .......................................................................................................................................................................... 25
Opportunity - Potential Growth for Unconventional Oil and Gas..................................................................................................................... 25
Opportunity - Asset Portfolio Management and Optimization ......................................................................................................................... 25
Opportunity - Strategic Acquisitions ................................................................................................................................................................ 25
Hess Corporation - Threats ................................................................................................................................................................................... 25
Threat - US Energy Policy and Increasing Tax Burden .................................................................................................................................. 25
Threat - Stringent Regulations ........................................................................................................................................................................ 26
Threat - Fluctuating Oil Markets ...................................................................................................................................................................... 26
Threat - Rising Capital Costs in the Refining Sector....................................................................................................................................... 26
Hess Corporation - Key Competitors ........................................................................................................................................................................... 27
Hess Corporation (HES) - Financial and Strategic SWOT Analysis Review Reference Code: GDGE1146FSA
Source : www.globalcompanyintelligence.com Page 2
Section 3 – Company Financial Ratios ........................................................................................................................................................................ 28
Financial Ratios - Capital Market Ratios................................................................................................................................................................ 28
Financial Ratios - Annual Ratios............................................................................................................................................................................ 28
Performance Chart ................................................................................................................................................................................................ 30
Financial Performance........................................................................................................................................................................................... 30
Financial Ratios - Interim Ratios............................................................................................................................................................................ 31
Financial Ratios - Ratio Charts .......................................................................................................................................................