This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Stocks Seth Klarman Loves

Hess

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

$17 billion integrated oil stock Hess (HES) may not get the attention of the supermajors, but that doesn't mean that you should eschew this energy firm.

Hess may be best known for more than 1,360 gas stations spread across the Eastern U.S., but the firm's bread and butter is oil production. Hess has a portfolio of oil and gas projects throughout North America, Australia, North Africa and the Middle East that flow through to Hess' refinery capacity of more than 280,000 barrels a day. The firm's total proven reserves currently stand at 1.5 billion barrels of oil equivalent.

>>9 Oil Stocks With Hot Prospects

Hess has been transitioning in a big way in the last few years. While the firm has seen substantial success in its exploration and production arm, its downstream assets have been less fruitful. The decision to close its refinery in the Virgin Islands (while keeping its terminal there) means that the closure of its New Jersey refinery seems likely. Refining simply lacks the margins that Hess can earn in the E&P business, and management's acknowledgement of that fact is a good sign.

While the firm's balance sheet is leveraged with around $7.8 billion in debt, the oil business is capital intense and Hess' financials don't look out of sort from its peers. With more than $800 million in cash and investments and a $4 billion credit facility, Hess isn't likely to have any liquidity problems in 2012. Baupost group added the position to its perfolio last quarter, picking up 1 million shares for what's now a $50 million stake in the company.

Hess is also one of David Einhorn's Greenlight Capital holdings.

4 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,088.52 +1.89 0.01%
S&P 500 1,987.01 +3.48 0.18%
NASDAQ 4,473.6970 +17.6810 0.40%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs