NEW YORK (TheStreet) -- Shares of Hess Corp. (HES - Get Report) are up 3.9% to $103.30 after the company said it would pursue the formation and initial public offering of a master limited partnership (MLP).
The energy company intends to use the MLP as the primary midstream vehicle to support its Bakken oil shale production growth.
Also, Hess reported a second quarter profit of $931 million, or $2.96 a share, down from $1.43 billion, or $4.16 a share, a year earlier. Excluding divestiture and restructuring-related impacts and other items, adjusted earnings fell to $1.38 from $1.51.
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Analysts polled by Thomson Reuters expected per-share profit of $1.18.
TheStreet Ratings team rates HESS CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate HESS CORP (HES) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, reasonable valuation levels, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."