Retirement Stock Portfolio: 12 Energy Stocks To Consider

3. Hess Corporation (NYSE:HES)

Hess Corporation (NYSE:HES) is an American global independent energy company that explores, develops, produces, purchases, transports, and sells crude oil, natural gas liquids (NGLs), and natural gas. The company has maintained a consistent dividend payment record since 1987. As of September 6, the dividend yield for Hess Corp is 1.39%. It recently announced that it has received approval from the board of directors to increase its quarterly dividend. The new dividend is 50 cents per share, reflecting an increase of 14.3% from the prior amount of 43.75 cents.

Hess Corporation (NYSE:HES) is being acquired by Chevron Corporation for a whopping $53 billion price tag. Hess believes that its shareholders will receive roughly four times higher dividends after the merger. Net income for the second quarter of 2024 was $757 million, or $2.46 per share, as compared to $119 million, or $0.39 per share, in the second quarter of 2023. Company-wide net production averaged 387,000 barrels of oil equivalent per day was well above their guidance of approximately 355,000 to 365,000 barrels of oil equivalent per day. Moreover, based upon a flat Brent oil price of $75 per barrel, the company’s cash flow is forecast to increase by approximately 25% annually between 2022 and 2027, more than twice as fast as their top-line growth. With free cash flow generation steadily increasing in future years, share repurchases are expected to represent a growing proportion of their return of capital.

At the end of the second quarter of 2024, the number of hedge funds with stakes in Hess Corporation decreased from 80 to 73, with stakes collectively valued at over $78.6 billion. The stock recently made it to our list of Goldman Sachs’ Best Hedge Fund Stock Picks: Top 20 Stocks.