10 Best Oil and Gas Stocks to Buy Now

3. Hess Corporation (NYSE:HES)

Number of Hedge Fund Holders: 80

Hess Corporation (NYSE:HES) is one of the 10 best oil and gas stocks to buy now. On June 11, UBS increased its price target on Hess Corporation (NYSE:HES) from $163 to $173 while keeping a “Buy” rating.

UBS analysts raised the price target because of the firm’s updated valuation of Hess Corporation’s (NYSE:HES) Guyana operations. UBS expects stronger production in Guyana. This outlook is supported by tiebacks and infill drilling, as well as lower operating costs.

The firm also noted that Hess Corporation (NYSE:HES) is currently involved in an arbitration process, which is expected to last until late August or September of this year.

Additionally, UBS increased its downside case valuation for Hess Corporation (NYSE:HES) to $126 per share. This suggests that there is now less risk of the stock declining. This new assessment relies on the reported discoverable resources of over 11 billion barrels of oil equivalent (Bpoe). The firm believes that if the resources reach 15 Bpoe, the downside potential could be even lower.

UBS highlighted that Hess Corporation (NYSE:HES) offers a positive 3.4:1 risk/reward ratio compared to Chevron’s price target. The firm believes that Hess Corporation (NYSE:HES) is “the more levered way to gain upside exposure to CVX.”

Hess Corporation (NYSE:HES) is an American global independent energy company that specializes in the exploration and production of oil, gas, and energy solutions.