Hess Option Alert: Jan 16 $160 Calls Sweep (5) near the midpoint: 1050 vs 1719 OI; Earnings 7/30 Before Open [est] 

Hess Option Alert: Jan 16 $160 Calls Sweep (5) near the midpoint: 1050 @ $8.01 vs 1719 OI; Earnings 7/30 Before Open [est] Ref=$147.79

Hess Option Alert: Jan 16 $170 Calls Sweep (5) near the midpoint: 1050 vs 514 OI; Earnings 7/30 Before Open [est] 

Hess Option Alert: Jan 16 $170 Calls Sweep (5) near the midpoint: 1050 @ $4.81 vs 514 OI; Earnings 7/30 Before Open [est] Ref=$147.79

Hess (NYSE:HES) Bolsa

Hess

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 2024, the company reported net proved reserves of 1.44 billion barrels of oil equivalent. Net production averaged 481 thousand barrels of oil equivalent per day in 2024, at a ratio of 79% oil and natural gas liquids and 21% natural gas.

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Shares of oil-related companies are trading higher. A recent report suggests OPEC+ is considering pausing output increase after the next hike. Additionally, oil may be higher on a Senate sanctions bill targeting Russian energy.

After nearly two years of uncertainty and legal wrangling, a resolution may be imminent in Chevron Corporation&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>) highly anticipated acquisition of Hess Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HES#NYSE">HES</a>).
Media reports suggest arbitrators are close to a decision in the dispute, which hinges on whether Exxon Mobil Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOM#NYSE">XOM</a>) and CNOOC, Hess&#8217;s partners in Guyana&#8217;s lucrative Stabroek block, have a right of first refusal on Hess&#8217;s stake.
This pivotal ruling will determine the fate of Chevron&#8217;s all-stock deal, which has already cleared antitrust review and secured shareholder approval, and could significantly reshape Chevron&#8217;s long-term growth trajectory and free cash flow prospects.
Bank of America Securities (BofA) analyst Jean Ann Salisbury has reiterated a Buy rating on Chevron, setting a price forecast of $170. According to Salisbury, the arbitration over Chevron&#8217;s acquisition of Hess is close to a resolution, with a decision expected soon.
The core of the issue lies in arbitration claims filed by Exxon Mobil and CNOOC, who assert that their joint operating agreement for Guyana&#8217;s Stabroek block grants them a right of first refusal on Hess&#8217;s interest.
Salisbury outlines two potential outcomes for the arbitration. First, if arbitrators determine that the ROFR in the Guyana joint operating agreement does not apply to a full corporate acquisition, Chevron&#8217;s all-stock deal could close promptly, given it has already passed FTC antitrust review and received board and shareholder approval.
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/large-cap/25/06/46097277/chevron-locks-in-more-lng-from-energy-transfers-lake-charles-project" rel="noreferrer noopener">Chevron Waves In More LNG From Energy Transfer&#8217;s Lake Charles Project</a>
Second, if the ROFR is deemed valid, only Exxon (or potentially CNOOC) could ultimately acquire Hess&#8217;s stake. Should Chevron prevail, Salisbury anticipates a re-rating of Chevron&#8217;s stock, driven by enhanced long-term free cash flow prospects.
Strategically, the Hess acquisition is deemed transformative. It would significantly boost Chevron&#8217;s production with low-cost oil (under $35/bbl breakeven) and expand its geographic footprint, complementing existing Permian and TCO assets.
This deal would also address a projected gap in Chevron&#8217;s 2027+ project pipeline, fostering free cash flow (FCF) growth into the early 2030s and strengthening its position in TCO extension negotiations.
While Hess is projected to become FCF-positive by 2026, the merger would initially dilute FCF per share in a pro forma model; however, by 2029, it is expected to outperform Chevron&#8217;s standalone FCF.
Salisbury projects Chevron (excluding Hess) to generate over $18/share in FCF by 2028 at $70 Brent, supported by several major project ramp-ups.
Currently, Chevron trades at approximately an 11% FCF yield based on fourth-quarter 2027 run-rate estimates, compared to Exxon&#8217;s 9%. The analyst sees potential for Chevron to re-rate closer to Exxon&#8217;s levels as investors gain greater clarity on post-2027 growth.
Salisbury also suggests that the downside risk for Chevron appears limited. The stock already trades at FCF yields comparable to some U.S. E&amp;Ps, despite Chevron offering the added advantages of an integrated value chain, a global footprint, and a balanced portfolio of long- and short-cycle assets.
In this context, the anticipated two years of organic growth could provide Chevron with the flexibility to pursue another acquisition if desired, though high-quality targets are increasingly scarce. If the Hess deal ultimately does not close, Salisbury notes that the resulting clarity might allow Chevron to redefine its strategic direction.
Price Action: CVX shares are trading higher by 0.69% to $154.07 at last check Thursday.
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Chevron-Hess Arbitration Nears Verdict As Analyst Sees Limited Downside, Big Upside Potential

In the last three months, 8 analysts have published ratings on Hess (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HES#NYSE">HES</a>), offering a diverse range of perspectives from bullish to bearish.
Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th align="right">Bullish</th>
<th align="right">Somewhat Bullish</th>
<th align="right">Indifferent</th>
<th align="right">Somewhat Bearish</th>
<th align="right">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td align="right">2</td>
<td align="right">3</td>
<td align="right">3</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td align="right">1</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">2</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
</tbody>
</table>
Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $161.7, with a high estimate of $191.00 and a low estimate of $136.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 3.53%. 
<img src="https://www.benzinga.com/files/images/story/2025/1751490043_0.png" alt="price target chart" />
<h2>Breaking Down Analyst Ratings: A Detailed Examination</h2>
The standing of Hess among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Nitin Kumar</td>
<td>Piper Sandler</td>
<td>Raises</td>
<td>Overweight</td>
<td>$153.00</td>
<td>$147.00</td>
</tr>
<tr>
<td>Roger Read</td>
<td>Wells Fargo</td>
<td>Lowers</td>
<td>Overweight</td>
<td>$184.00</td>
<td>$193.00</td>
</tr>
<tr>
<td>Josh Silverstein</td>
<td>UBS</td>
<td>Raises</td>
<td>Buy</td>
<td>$173.00</td>
<td>$163.00</td>
</tr>
<tr>
<td>Nitin Kumar</td>
<td>Piper Sandler</td>
<td>Lowers</td>
<td>Overweight</td>
<td>$147.00</td>
<td>$151.00</td>
</tr>
<tr>
<td>Nitin Kumar</td>
<td>Mizuho</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$191.00</td>
<td>$193.00</td>
</tr>
<tr>
<td>Biju Perincheril</td>
<td>Susquehanna</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$136.00</td>
<td>$160.00</td>
</tr>
<tr>
<td>Josh Silverstein</td>
<td>UBS</td>
<td>Lowers</td>
<td>Buy</td>
<td>$163.00</td>
<td>$170.00</td>
</tr>
<tr>
<td>Paul Cheng</td>
<td>Scotiabank</td>
<td>Lowers</td>
<td>Sector Perform</td>
<td>$146.58</td>
<td>$164.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Hess. This offers insight into analysts' perspectives on the current state of the company.</li>
<li>Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Hess compared to the broader market.</li>
<li>Price Targets: Delving into movements, analysts provide estimates for the future value of Hess's stock. This analysis reveals shifts in analysts' expectations over time.</li>
</ul>
Capture valuable insights into Hess's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/HES/analyst-ratings?adType=benzinga-insights&amp;ad=analyst-ratings&amp;campaign=wallstreetadvantage">Stay up to date on Hess analyst ratings.</a>
<h2>About Hess</h2>
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 2024, the company reported net proved reserves of 1.44 billion barrels of oil equivalent. Net production averaged 481 thousand barrels of oil equivalent per day in 2024, at a ratio of 79% oil and natural gas liquids and 21% natural gas.
<h3>Hess's Economic Impact: An Analysis</h3>
Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.
Decline in Revenue: Over the 3M period, Hess faced challenges, resulting in a decline of approximately -12.0% in revenue growth as of 31 March, 2025. This signifies a reduction in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Energy sector.
Net Margin: Hess's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 14.77%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): Hess's ROE stands out, surpassing industry averages. With an impressive ROE of 3.78%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): Hess's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.6% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 0.82, caution is advised due to increased financial risk.
<h2>What Are Analyst Ratings?</h2>
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.
Which Stocks Are Analysts Recommending Now?
Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-checkout/?t=be8be9arja3be22bz21&amp;adType=benzinga-insights&amp;ad=analyst-ratings&amp;campaign=wallstreetadvantage">Click here to stay ahead of the market</a>.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Hess Stock: A Deep Dive Into Analyst Perspectives (8 Ratings)

Piper Sandler analyst Nitin Kumar maintains Hess (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HES#NYSE">HES</a>) with a Overweight and raises the price target from $147 to $153.

Piper Sandler Maintains Overweight on Hess, Raises Price Target to $153

Watching Hess; Live On CNBC, Pentwater Capital Discusses Merger With Chevron On Segment Titled "Top 10 Hess Shareholder On Chevron; Shares See A Pop To The Upside

Wells Fargo analyst Roger Read maintains Hess (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HES#NYSE">HES</a>) with a Overweight and lowers the price target from $193 to $184.

Wells Fargo Maintains Overweight on Hess, Lowers Price Target to $184

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FANG

SHEL

Shares of energy stocks are trading lower as oil prices drop following a softer-than-expected Iranian attack on a US base in Qatar.

Shares of energy stocks are trading higher as oil rises amid concerns of Israel-Iran escalation. President Trump denied working on a ceasefire and said everyone should evacuate Tehran.

Hess's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HES#NYSE">HES</a>) short percent of float has risen 24.65% since its last report. The company recently reported that it has 11.08 million shares sold short, which is 4.5% of all regular shares that are available for trading. Based on its trading volume, it would take traders 5.41 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock?adType=benzinga-insights&amp;ad=short-interest&amp;campaign=wallstreetadvantage">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest?adType=benzinga-insights&amp;ad=short-interest&amp;campaign=wallstreetadvantage">List of the most shorted stocks</a>
<h3>Hess Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2025/1750168818_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Hess has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.
<h3>Comparing Hess's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://www.benzinga.com/pro/">Benzinga Pro</a>, Hess's peer group average for short interest as a percentage of float is 9.50%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze?adType=benzinga-insights&amp;ad=short-interest&amp;campaign=wallstreetadvantage">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

How Do Investors Really Feel About Hess?

Hess (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HES#NYSE">HES</a>) has been analyzed by 6 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.
The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.
<table>
<thead>
<tr>
<th></th>
<th align="right">Bullish</th>
<th align="right">Somewhat Bullish</th>
<th align="right">Indifferent</th>
<th align="right">Somewhat Bearish</th>
<th align="right">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td align="right">2</td>
<td align="right">1</td>
<td align="right">3</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
</tbody>
</table>
Analysts have set 12-month price targets for Hess, revealing an average target of $159.43, a high estimate of $191.00, and a low estimate of $136.00. This current average represents a 4.44% decrease from the previous average price target of $166.83. 
<img src="https://www.benzinga.com/files/images/story/2025/1749650474_0.png" alt="price target chart" />
<h2>Understanding Analyst Ratings: A Comprehensive Breakdown</h2>
The standing of Hess among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Josh Silverstein</td>
<td>UBS</td>
<td>Raises</td>
<td>Buy</td>
<td>$173.00</td>
<td>$163.00</td>
</tr>
<tr>
<td>Nitin Kumar</td>
<td>Piper Sandler</td>
<td>Lowers</td>
<td>Overweight</td>
<td>$147.00</td>
<td>$151.00</td>
</tr>
<tr>
<td>Nitin Kumar</td>
<td>Mizuho</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$191.00</td>
<td>$193.00</td>
</tr>
<tr>
<td>Biju Perincheril</td>
<td>Susquehanna</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$136.00</td>
<td>$160.00</td>
</tr>
<tr>
<td>Josh Silverstein</td>
<td>UBS</td>
<td>Lowers</td>
<td>Buy</td>
<td>$163.00</td>
<td>$170.00</td>
</tr>
<tr>
<td>Paul Cheng</td>
<td>Scotiabank</td>
<td>Lowers</td>
<td>Sector Perform</td>
<td>$146.58</td>
<td>$164.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Hess. This information provides a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Hess compared to the broader market.</li>
<li>Price Targets: Understanding forecasts, analysts offer estimates for Hess's future value. Examining the current and prior targets provides insight into analysts' changing expectations.</li>
</ul>
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Hess's market standing. Stay informed and make well-considered decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/HES/analyst-ratings?adType=benzinga-insights&amp;ad=analyst-ratings&amp;campaign=wallstreetadvantage">Stay up to date on Hess analyst ratings.</a>
<h2>About Hess</h2>
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 2024, the company reported net proved reserves of 1.44 billion barrels of oil equivalent. Net production averaged 481 thousand barrels of oil equivalent per day in 2024, at a ratio of 79% oil and natural gas liquids and 21% natural gas.
<h3>Key Indicators: Hess's Financial Health</h3>
Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.
Decline in Revenue: Over the 3M period, Hess faced challenges, resulting in a decline of approximately -12.0% in revenue growth as of 31 March, 2025. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Energy sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 14.77%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Hess's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 3.78%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.6%, the company showcases effective utilization of assets.
Debt Management: Hess's debt-to-equity ratio stands notably higher than the industry average, reaching 0.82. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
<h2>Analyst Ratings: What Are They?</h2>
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.
Which Stocks Are Analysts Recommending Now?
Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-checkout/?t=be8be9arja3be22bz21&amp;adType=benzinga-insights&amp;ad=analyst-ratings&amp;campaign=wallstreetadvantage">Click here to stay ahead of the market</a>.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Beyond The Numbers: 6 Analysts Discuss Hess Stock

UBS analyst Josh Silverstein maintains Hess (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HES#NYSE">HES</a>) with a Buy and raises the price target from $163 to $173.

UBS Maintains Buy on Hess, Raises Price Target to $173

As previously disclosed, Vitesse Energy, Inc. ("VTS") was the plaintiff in an ongoing dispute in state court in North Dakota with one of its operators related to post-production deductions from revenues. The trial was scheduled to begin June 16, 2025. Effective as of May 28, 2025, VTS has resolved this pending litigation in North Dakota with Hess. VTS will receive a one-time cash payment of $24 million no later than June 25, 2025, has elected to take virtually all of its gas production from Hess-operated wells in-kind commencing July 1, 2025, and has entered into long term gas gathering, processing and marketing agreements with Hess affiliates.
 &nbsp;

Vitesse Settles Legal Dispute with Hess, Will Receive $24M and Take Control of Its Gas Output

AMPY

CTRA

MTDR

RCON

Shares of oil stocks are trading higher amid an OPEC+ decision to keep output levels unchanged.

In a corporate cage match, two of the globe&#8217;s most dominant oil titans are fighting it out for a share of one of the world&#8217;s most coveted oil finds: Guyana. But while Chevron Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>) and Exxon Mobil Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOM#NYSE">XOM</a>) are in the midst of arbitration, ETF investors may need to hold on tight. This courtroom battle could rock some of the <a href="https://www.benzinga.com/etfs">largest energy ETFs available</a>.
<h1 class="wp-block-heading">The Stakes: Oil, Ego — And An 11 Billion Barrel Bonanza</h1>
Behind the fight is Hess Corp&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HES#NYSE">HES</a>) 30% interest in a huge Guyanese oil project, which has roughly 11 billion barrels in projected reserves. Chevron said in 2023 it agreed to buy Hess for $53 billion, a transaction that would put it at the front of the Guyana boom. 
But Exxon, which already <a href="https://www.benzinga.com/markets/equities/24/06/39479711/exxon-mobil-rakes-in-billions-from-guyana-oil-deal-net-margin-tops-chip-giant-report">co-leads the Guyana project</a>, says it has pre-emptive rights to the stake. Arbitration gets underway in London this week, and sometime in late summer, a panel will <a href="https://www.benzinga.com/topic/oil">make a decision</a>.
<h1 class="wp-block-heading">ETF Fallout: Who&#8217;s Exposed To What?</h1>
The heavy hitters such as Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>), iShares U.S. Energy ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYE#NYSE">IYE</a>) and Vanguard Energy Index Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VDE#NYSE">VDE</a>) are carrying heavy loads of both Exxon and Chevron, between 35% and 40% combined weighting in each fund.
If either Exxon or Chevron prevails, one can anticipate a pop for these ETFs as the Guyana deal would mean long-term growth assets for the prevailing company.
Hess Corp. is smaller but essential in this saga. ETFs such as iShares U.S. Oil &amp; Gas Exploration &amp; Production ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IEO#BATS">IEO</a>) carry meaningful exposure to Hess, and therefore a front-row seat to either a lucrative M&amp;A payday or a disappointing fizz.
Additionally, merger arbitrage ETFs, such as NYLI Merger Arbitrage ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MNA#NYSE">MNA</a>) and ProShares Merger ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/MRGR#BATS">MRGR</a>), are likely to be betting on the Hess factor already. If the transaction gets delayed or blocked further, one can expect some readjustment.
<h1 class="wp-block-heading">Beyond the Big Oil Bets</h1>
As Chevron cuts jobs and balances new resources in Kazakhstan and the Gulf of Mexico, it also deals with <a href="https://www.benzinga.com/markets/25/02/44000386/trump-shuts-down-chevrons-venezuela-oil-permit-tightening-pressure-on-maduro-regime-crude-oil-prices-rise-on-supply-concerns">uncertainty in Venezuela</a>, where an operating license may be withdrawn. Exxon is increasing <a href="https://corporate.exxonmobil.com/locations/guyana/guyana-project-overview">production </a>in Guyana to 1.3 million barrels/day by 2027, greater than North Dakota&#8217;s Bakken Shale.
<h1 class="wp-block-heading">One Wrong Move = ETF Domino Effect</h1>
With activist investors watching Exxon and Chevron still under pressure to prove long-term growth, the arbitration&#8217;s outcome could drive major portfolio re-weightings, flows into specific funds or a rise in thematic oil and gas ETFs.
In short, this isn't just a battle over barrels, it's about which ETFs end up doing well and which might need a Band-Aid.
<h1 class="wp-block-heading">Final Thought</h1>
This Guyana brawl might be happening in a London arbitration chamber, but its aftershocks will be felt through world markets and ETF tickers. For investors, it&#8217;s time to look beyond the barrel and begin peering at the ticker tape.
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Photo: Shutterstock

Sector ETFs

Commodities

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ETFs

iShares Dow Jones US Oil & Gas Exploration & Production Index Fund

iShares Dow Jones US Energy Sector Index Fund

MRGR

Exxon Stock Vs. Chevron: The 11 Billion Barrel Oil War That Could Shake Up Energy ETFs

Hess (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HES#NYSE">HES</a>) has outperformed the market over the past 5 years by 7.49% on an annualized basis producing an average annual return of 21.76%. Currently, Hess has a market capitalization of $40.13 billion. 
Buying $100 In HES: If an investor had bought $100 of HES stock 5 years ago, it would be worth $267.65 today based on a price of $130.16 for HES at the time of writing.
<h3>Hess's Performance Over Last 5 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2025/1747859412_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Here's How Much You Would Have Made Owning Hess Stock In The Last 5 Years

Hess's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HES#NYSE">HES</a>) short percent of float has risen 13.92% since its last report. The company recently reported that it has 8.68 million shares sold short, which is 3.52% of all regular shares that are available for trading. Based on its trading volume, it would take traders 5.0 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock?adType=benzinga-insights&amp;ad=short-interest&amp;campaign=wallstreetadvantage">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest?adType=benzinga-insights&amp;ad=short-interest&amp;campaign=wallstreetadvantage">List of the most shorted stocks</a>
<h3>Hess Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2025/1747249257_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Hess has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.
<h3>Comparing Hess's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://www.benzinga.com/pro/">Benzinga Pro</a>, Hess's peer group average for short interest as a percentage of float is 7.99%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze?adType=benzinga-insights&amp;ad=short-interest&amp;campaign=wallstreetadvantage">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Peering Into Hess's Recent Short Interest

Piper Sandler analyst Nitin Kumar maintains Hess (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HES#NYSE">HES</a>) with a Overweight and lowers the price target from $151 to $147.

Piper Sandler Maintains Overweight on Hess, Lowers Price Target to $147

Mizuho analyst Nitin Kumar maintains Hess (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HES#NYSE">HES</a>) with a Neutral and lowers the price target from $193 to $191.

Mizuho Maintains Neutral on Hess, Lowers Price Target to $191

Activist investor Elliott Investment Management scored a victory on Monday when Institutional Shareholder Services recommended investors elect all four of Elliott&#8217;s director nominees to the Phillips 66 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSX#NYSE">PSX</a>) board, bolstering the hedge fund&#8217;s campaign for strategic changes at the oil refiner.
What Happened: Elliott, which <a href="https://www.benzinga.com/markets/equities/25/02/43614105/activist-investor-elliott-builds-25-billion-stake-in-phillips-66-pressures-for-midstream-spinoff-report">holds a $2.5 billion stake in Phillips 66</a>, has urged the company to divest its midstream business. Proxy advisory firm ISS backed all four of Elliott's board nominees, joining Glass Lewis and Egan-Jones in supporting the activist's push ahead of the May 21 shareholder vote, Reuters reported.
ISS is a top proxy advisory firm whose recommendations guide major investors on corporate votes, often swaying outcomes in boardroom battles.
&#8220;Although the board has been reshaped since the pandemic, important industry perspectives have been overlooked, and there is strong evidence that the board is not willing to exercise independent oversight of management,&#8221; ISS wrote in its report.
The proxy advisor also challenged Phillips 66&#8217;s argument that its integrated strategy delivers superior returns, noting the stock began underperforming peers in mid-2021 and &#8220;has not been able to close the gap.&#8221; PSX shares have dropped 18% over the past 52 weeks, closing at $118.68 on Monday.
See Also: <a href="https://www.benzinga.com/trading-ideas/movers/25/05/45366281/bitcoin-ethereum-dogecoin-retreat-stocks-rally-after-us-china-tariff-de-escalation-analyst-sees-opportunity-in-2100-2250-if-eth-corrects">Bitcoin, Ethereum, Dogecoin Retreat, Stocks Rally After US-China Tariff De-Escalation: Analyst Sees Opportunity In $2,100-2,250 If ETH Corrects</a>
Why It Matters: Elliott first disclosed its investment in Phillips 66 in February, expanding from an initial $1 billion position that had already secured a board seat for refining veteran Robert Pease last year. The activist fund&#8217;s larger stake now places it among Phillips 66&#8217;s top five shareholders.
The hedge fund, <a href="https://www.benzinga.com/news/24/08/40411028/elliott-management-alums-spawn-their-offshoots-amid-rigid-changes-and-increased-bureaucracy-at-70b-h">which manages $70 billion</a>, has a strong track record in the energy sector with successful investments at Marathon Petroleum (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MPC#NYSE">MPC</a>), NRG Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NRG#NYSE">NRG</a>), Suncor Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SU#NYSE">SU</a>) and Hess (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HES#NYSE">HES</a>).
Elliott said the ISS report &#8220;fully validates Elliott&#8217;s case for change,&#8221; according to the report. 
Photo Courtesy: Ken Wolter on Shutterstock.com
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Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Elliott Management Scores Key Win In Phillips 66 Proxy Fight As ISS Backs All Four Board Nominees Ahead Of May 21 Vote

Looking into the current session, Hess Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HES#NYSE">HES</a>) shares are trading at $131.43, after a 1.81% increase. Moreover, over the past month, the stock increased by 3.35%, but in the past year, decreased by 18.06%. Shareholders might be interested in knowing whether the stock is undervalued, even if the company is performing up to par in the current session. 

<img src="https://www.benzinga.com/files/images/story/2025/1746727222_0.png" alt="Past Year Chart" />

<h3>Comparing Hess P/E Against Its Peers</h3>
The P/E ratio measures the current share price to the company's EPS. It is used by long-term investors to analyze the company's current performance against it's past earnings, historical data and aggregate market data for the industry or the indices, such as S&amp;P 500. A higher P/E indicates that investors expect the company to perform better in the future, and the stock is probably overvalued, but not necessarily. It also could indicate that investors are willing to pay a higher share price currently, because they expect the company to perform better in the upcoming quarters. This leads investors to also remain optimistic about rising dividends in the future. 
Hess has a lower P/E than the aggregate P/E of 18.62 of the Oil, Gas &amp; Consumable Fuels industry. Ideally, one might believe that the stock might perform worse than its peers, but it's also probable that the stock is undervalued. 

<img src="https://www.benzinga.com/files/images/story/2025/1746727222_1.png" alt="Guage" />

In conclusion, the price-to-earnings ratio is a useful metric for analyzing a company's market performance, but it has its limitations. While a lower P/E can indicate that a company is undervalued, it can also suggest that shareholders do not expect future growth. Additionally, the P/E ratio should not be used in isolation, as other factors such as industry trends and business cycles can also impact a company's stock price. Therefore, investors should use the P/E ratio in conjunction with other financial metrics and qualitative analysis to make informed investment decisions.

Intraday Update

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Date	Put/Call	Strike Price	Exp Date	DTE	Trade Vol	Day Vol	Vol / OI	OI	Trade Type	Sentiment
11:46 AMJul 08, 2025	CALL	$160.00	Jan 16, 2026	187	1102	1050	64	1719	SWEEP	NEUTRAL
11:46 AMJul 08, 2025	CALL	$170.00	Jan 16, 2026	187	250	1050	49	514	SWEEP	NEUTRAL

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