New York City-based Hess Corporation (HES), previously known as Amerada Hess Corporation (AHC), is an integrated oil company engaged in oil and gas exploration, production (E&P) and refining as well as marketing. As of year-end 2007, the company’s proved reserves tally stood at 1.33 billion oil-equivalent barrels, of which approximately two-thirds consisted of crude oil/liquids.

Hess has slashed its 2009 capital budget in response to the pullback in crude oil prices and credit market turmoil, essentially bringing its outlays inline with projected internal cash flows. The company plans to spend $3.2 billion next year, down from the roughly $5 billion budgeted for 2008.

We consider the move as prudent given the macro backdrop. While we continue to see upstream momentum at Hess on the back of the company’s large inventory of exploration and development projects, our Hold recommendation remains unchanged at this stage.

Read the full analyst report on HES

“HES” Free Stock Analysis: Buy? Sell? Hold?
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