02:15 AM EDT, 04/26/2024 (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 of $165, up $20, reflects an 8.3x multiple of EV to projected '24 EBITDA, slightly below HES's historical forward average. We think a discount is merited due to the delay of merging with Chevron (CVX 165 ***), as Exxon (XOM 121 ****) and China's CNOOC are claiming a pre-emptive right to purchase HES's stake in Guyana's offshore assets. We lift our stand-alone '24 EPS view by $1.65 to $9.63 and '25's by $2.31 to $11.39. Q1 EPS of $3.16, vs. $1.13, beat consensus by $1.43. Q1 revenues ($3.3B) grew 35% Y/Y, driven by international revenues (+43%). Q1 production (476k boe/d) grew by 27% Y/Y due to higher Guyana volumes (+70%). On April 25, HES and CVX reported that they had extended the completion date of the planned merger by six months due to pending arbitration with XOM and CNOOC. Given that the terms of the JOA are unknown, it's difficult for us to determine if the merger is at risk; however, we wouldn't be surprised if a payout is offered to XOM and CNOOC to settle the dispute.