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Q2 earnings provide evidence of stellar year ahead

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Hayes Corporation (They said,) is doing really well as an energy company. With increased demand for oil and gas, Hayes’ profitability continues to see a huge boost, delivering an impressive set of second-quarter results. It is one of the few companies that has grown substantially in double digits so far this year. Tailwinds in the energy industry set HES up for a solid rest of the year. I am bullish on HES stock.

Hayes Corporation is a global energy company focused on exploration, production, refining and marketing. It also produces natural gas and gasoline and other refined products. Hayes also has a significant presence in the retail market through its Hayes Express convenience stores.

In addition to its upstream and downstream businesses, it also has a strong portfolio of midstream assets, including crude oil pipelines and terminals, gas processing plants and power generation facilities.

The energy industry is changing daily, and it is impossible to know what will happen in the future. With changes in both production and demand, many risks cannot be ruled out – including a looming economic slowdown that could turn people away from buying petroleum products; An event like COVID-19 can also cause significant disruption to supply chains if they are not properly prepared in advance (something that no one wants). At the same time, technology innovations can create entirely new challenges.

Overall, however, Hayes appears to be a great investment as it is a well-run company with a diversified portfolio of assets. The company has a remarkable track record of generating lots of cash and has a strong balance sheet.

Hayes’ earnings show higher growth

Hayes Corporation reported earnings on July 27 and pleased investors. Revenue rose 88% year-over-year to $2.89 billion in shares of the global independent energy company. Net income also increased to $667 million from a loss of $73 million in the same quarter last year.

The company beat analyst expectations, posting EPS of $2.15, which lowered analyst estimates of $2.14. Looking ahead, analysts are forecasting EPS of $2.73 for the third quarter.

A few months ago, oil prices began to rise, nearly doubling the $60 per barrel mark in just one year. It is clear that demand for oil has increased and should continue. We have already reached the level of 100 million barrels per day that we were before COVID-19, and even though the price has dropped occasionally, it is still above $90 a barrel.

It is expected that this crisis created by the Russian invasion of Ukraine will not end soon. For many countries, global gas shortages have been an ongoing problem. In some cases, prices have increased eightfold because there are not enough natural resources available to supply demand. However, energy companies are making money from this situation. Hayes is no exception to this widespread trend.

Hayes production is increasing

The energy company is increasing production. It has brought 50 wells online during the second quarter. In comparison, only 32 wells came online in the first half of this year. Hess expects its production rate in the Bakken to steadily increase to 200,000 barrels of oil equivalent per day (boe/d) by 2024.

The energy company recently discovered two offshore wells in Guyana. It joins the Stabroek block, about 120 miles from Guyana, which is estimated to hold 11 billion barrels of oil equivalent.

Such developments will help ensure that HESS manages to achieve its financial goals. Hayes Corporation forecasts that, by 2026, its annual free cash flow (FCF) yield will be 10%. This means that the compound annual growth rate, or CAGR, will be 25% over a five-year period from 2021 to 2026.

Wall Street’s Take on HES Stock

HES has a strong buy consensus rating behind nine buys and one hold. The average HES stock price target for the energy company is $139.10, which is expected to increase by 39.3%.

Bottom Line: Hayes Is a Solid Energy Game

Hayes Corporation looks like it could be a great energy stock to invest in. The company has a strong presence in offshore and onshore drilling, and owns and operates its Hayes Infrastructure Partners subsidiary pipeline and terminals. Hess’ business in renewable energy is also growing.

The stock has performed well in recent years, and the company is expected to grow at a healthy pace. With the global energy crisis likely to end soon, this is a good time to consider HES stocks.

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