Atlantic Equities - Hess (HES) Guyana prefunded but FY18 volume guide low

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Atlantic Equities

Barry MacCarthy

Guyana prefunded but FY18 volume guide low

FY18 output guidance of +3% (pro-forma) was below consensus (+10%), reflecting a slow ramp-up at the new Stampede field and a lengthy restart of four existing Gulf of Mexico fields following a fire at a third party platform. Guyana funding is secured but we believe investors will continue to focus on near-term cash earnings. Retain Neutral, $45 price target.

06/02/2018 4 EN

Underlying

Hess

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Atlantic Equities

Formed in 2003 by an established team from Cazenove, one of the most respected investment banks in the UK, Atlantic Equities conducts and publishes fundamental, bottom up research on mid and large cap US companies.

Atlantic provide order execution through a wide range of DMA products and algorithmic trading suites.

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Analysts

Barry MacCarthy

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Guyana prefunded but FY18 volume guide low

Energy: Tighter supply supports further crude recovery

A robust performance in Q2

Strong output drives good first quarter

Model update

V/MA: strong core, adjacencies more competitive

Banks: Trading update and 3Q18 preview

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