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Hess Corp. (HES), Denbury Resources Inc. (DNR), Exxon Mobil Corporation (XOM): Three Oil Companies to Watch

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Earnings Analysis: Hess Corp. (NYSE: HES)Oil production has been in the spotlight recently. There has been an influx of produced wells, and oil prices have slowly risen to $92 per barrel. Investors should be looking for oil and gas companies to add to their portfolios. Here are three to consider.

Hess Corp. (NYSE:HES)

Hess Corp. (NYSE:HES) recently posted its first quarter earnings report, with strong gains beating analyst expectations. Hess Corp. (NYSE:HES) has a strong position in the Bakken shale in North Dakota and has profited greatly from its continued production.

Hess Corp. (NYSE:HES) grew its earnings per share by 30% to $1.95. It was able to do this even with overall production falling by 2%. One thing that has helped fuel the company’s earnings is the divestiture of refining and retail operations. With its renewed focus on exploration, investors can expect a driven company dedicated to exploration and production.

In the next two quarters, earnings will be lower than the most recent quarter. This is due to a focus on new drilling and fewer asset sales driving bottom line growth. While overall production dipped for the company, the Bakken region had an increase in output by 55%.

Total output is expected to increase more in the next year as the company focuses on additional production. This will yield a net income growth of 7%. With this increase in production and subsequent earnings, investors can expect the stock price to appreciate upwards of 10% to $78-$79 per share.

Denbury Resources Inc. (NYSE:DNR)

Denbury Resources Inc. (NYSE:DNR) has a strong position in the Bakken shale as well. It operates in the Gulf Coast region, in addition to the Rocky Mountain Bakken shale.

Denbury Resources Inc. (NYSE:DNR) boasts on its website its ability to bring oil fields back to life. The company has the ability to take mature wells and extract more oil and gas from them. It recently closed on a deal to purchase property in the Cedar Creek Anticline of North Dakota and Montana from ConocoPhillips. This will add to its annual production of both oil and natural gas for the next few years.

The company is reporting its earnings on May 2, 2013. The current quarter won’t see any earnings boosts from the new acquisition. But as the fields continue to produce, investors will see a boost in earnings in the next year. Investors should expect roughly $0.28 per share in earnings for the quarter.

Exxon Mobil Corporation (NYSE:XOM)

Exxon Mobil Corporation (NYSE:XOM) just released its quarterly earnings of $2.12 per share. This beat analyst expectations by $.07 per share.

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