04:55 AM EDT, 05/05/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Our 12-month target price of $140, cut $14, reflects a 6.6x multiple of enterprise value to projected 2026 EBITDA, about in line with HES's historical forward average. We cut our 2025 EPS estimate by $1.30 to $6.06, and similarly 2026's by $3.32 to $8.63. On the operational front, HES should benefit in the near-term from its 30% stake offshore development, where the next phase (Yellowtail) is likely to go on-line in the third quarter. On the other hand, HES also noted in April that cash operating expenses would likely rise in the second quarter, which arguably puts pressure on margins as we do not anticipate a significant recovery in crude oil prices in the near term. The legal battle between supermajor oils (Chevron and Exxon Mobil) over HES's 30% stake in Guyana is set to commence in the Court of Arbitration on May 26, and remains a key wildcard. A decision that favors Exxon Mobil could easily scuttle the entire merger between HES and CVX.