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Hess Financial Strength

: 5 (As of Jun. 2022)
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Hess has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Hess's Interest Coverage for the quarter that ended in Jun. 2022 was 9.67. Hess's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.77. As of today, Hess's Altman Z-Score is 2.71.


Competitive Comparison

For the Oil & Gas E&P subindustry, Hess's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Hess Financial Strength Distribution

For the Oil & Gas industry and Energy sector, Hess's Financial Strength distribution charts can be found below:

* The bar in red indicates where Hess's Financial Strength falls into.



Hess Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Hess's Interest Expense for the months ended in Jun. 2022 was $-121 Mil. Its Operating Income for the months ended in Jun. 2022 was $1,170 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $8,979 Mil.

Hess's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*1170/-121
=9.67

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Hess's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(114 + 8979) / 11820
=0.77

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Hess has a Z-score of 2.71, indicating it is in Grey Zones. This implies that Hess is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.71 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Hess  (NYSE:HES) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Hess has the Financial Strength Rank of 5.


Hess Financial Strength Related Terms

Thank you for viewing the detailed overview of Hess's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Hess Business Description

Hess logo
Industry
Address
1185 Avenue of the Americas, New York, NY, USA, 10036
Hess is an independent oil and gas producer with key assets in the Bakken Shale, Guyana, the Gulf of Mexico, and Southeast Asia. At the end of 2021, the company reported net proved reserves of 1.3 billion barrels of oil equivalent. Net production averaged 315 thousand barrels of oil equivalent per day in 2021, at a ratio of 69% oil and natural gas liquids and 31% natural gas.
Executives
Glatch Lisa director EVOQUA WATER TECHNOLOGIES CORP. 210 SIXTH AVENUE PITTSBURGH PA 15222
Mcguire Raymond J director 5 GIRALDA FARMS MADISON NJ 07940
Lipschultz Marc S director C/O KOHLBERG KRAVIS ROBERTS & CO 9 WEST 57TH ST NEW YORK NY 10019
Ovelmen Karyn F. director STATIONSPLEIN 45 ROTTERDAM P7 3013AK
Schoonman Geurt G officer: Senior Vice President HESS CORPORATION 1185 AVENUE OF THE AMERICAS NEW YORK NY 10036
Duato Joaquin director ONE JOHNSON & JOHNSON PLAZA NEW BRUNSWICK NJ 08933
Lynch Richard D. officer: Senior Vice President HESS CORPORATION 1185 AVENUE OF THE AMERICAS NEW YORK NY 10036
Coleman Leonard S Jr director C/O ELECTRONIC ARTS INC. 209 REDWOOD SHORES PARKWAY REDWOOD CITY, CA 94065
Slentz Andrew P officer: Senior Vice President 1185 AVENUE OF THE AMERICAS NEW YORK NY 10036
Lowery-yilmaz Barbara J officer: Senior Vice President HESS CORPORATION 1185 AVENUE OF THE AMERICAS NEW YORK NY 10036
Truelove Brian D. officer: Senior Vice President HESS CORPORATION 1185 AVENUE OF THE AMERICAS NEW YORK NY 10036
Goodwillie Eugene W. Jr. 10 percent owner HESS CORPORATION 1185 AVENUE OF THE AMERICAS NEW YORK NY 10036
Checki Terrence J. director HESS CORPORATION 1185 AVENUE OF THE AMERICAS NEW YORK NY 10036
Fishman Eric S. officer: Vice President and Treasurer HESS CORPORATION 1185 AVENUE OF THE AMERICAS NEW YORK NY 10036
Mcmanus David director 5205 N O'CONNOR BLVD SUITE 200 IRVING TX 75039

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