Performance of Hess stock
Year-over-year, Hess stock has fallen ~10%. Crude oil prices have fallen ~11% in the same period. The broader energy ETF—the Energy Select Sector SPDR ETF (XLE)—has fallen by 5.5% in the same period.
Hess’s key management objectives
One of Hess’s (HES) key management objectives is to preserve growth options. Hess sees growth opportunities in the Bakken and Utica plays. It also has several growth projects offshore, including its North Malay Basin and Stampede projects. The company also sees growth opportunities in its international operations in Guyana and the Gulf of Mexico.
Another key strategy deployed by Hess this year is a reduction in rig count. In its 1Q16 earnings conference, Hess noted that its Bakken rig count would be reduced from three rigs to two rigs in 3Q16 and that it would maintain rigs at that level until crude oil prices were ~$60 per barrel.
Hess noted that as prices recover, it will accelerate drilling activity in the Bakken Shale.