How Does Hess’s Leverage Compare to Its Peers’?



Hess’s net debt-to-capital ratio: A peer comparison

In a presentation released by Hess Corporation (HES) on May 10, 2016, it noted its net debt-to-capital ratio versus its peers’ ratios.

The company noted that it had the lowest net debt-to-capital ratio among its peers at 13%. Chesapeake Energy (CHK) had a ratio of 75%, Continental Resources (CLR) had a ratio of 60%, and Apache (APA) had a net debt-to-capital ratio of 56%. The industry average is 39%.

The debt-to-capital ratio reflects a company’s leverage and capital structure. A company with a high debt-to-capital ratio depicts high risk.

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