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How Has Hess Corporation Stock Performed This Year?

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Performance of Hess stock

Hess Corporation (HES) stock has mostly been on an uptrend since the beginning of this year. Year-over-year, Hess stock has risen ~57.37%. Crude oil prices (USO) have risen ~58.99% in the same period.

Meanwhile, the broader energy ETF, the Energy Select Sector SPDR ETF (XLE), has risen 17.92% in the same period. The broader market ETF, the S&P 500 SPDR ETF (SPY), has risen ~14.23% in the period.

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What else is driving HES stock?

Apart from the uptrend in crude oil prices, Hess stock has been rallying due to its upbeat first-quarter earnings. The company has also been focusing on debt reduction and share repurchases.

On March 8, Hess announced its plans to buy back $1 billion worth of shares by the end of 2018 in addition to the $500 million share repurchase program it announced in late 2017. The move came after activist hedge fund Elliott Management targeted the company late last year, saying that the board lacked oversight and that it needed to streamline its focus on buybacks instead of dividends.

HES’s oil and gas peer Devon Energy (DVN) also announced a $1 billion share repurchase program, which it later increased to $4 billion. Anadarko Petroleum (APC) has an ongoing $4 billion share repurchase program, the first $3.0 billion of which it completed on June 29. Noble Energy (NBL) announced a $750 million share repurchase program at the start of the year. Pioneer Natural Resources (PXD) also announced a $100 million share repurchase program at the start of the year.

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