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Delphi Automotive PLC (DLPH), Hess Corp. (HES), BMC Software, Inc. (BMC): Billionaire Paul Singer Is Counting on These Companies

PEMEX is the first company to use the MyIT application, and it has an IT user base of 75,000. In addition, BMC signed a deal with Exxon Mobil Corporation (NYSE:XOM) and Credit Suisse Group AG (ADR) (NYSE:CS). The company boasts of more than 25,000 customers globally, with around 100 companies using BMC products across the world. Due to its large customer base, increased demand, and its IT user base, the company’s revenue is expected to increase from $2.1 billion in 2012 to $2.20 billion in this year and $2.32 billion next year.

Divestiture program for share repurchase

Hess Corp. (NYSE:HES) Bakken Shale posted total production of 65,000 million barrels of oil equivalent per day, or mboed, up 55% year-over-year, in the first quarter of this year. As Bakken Shale is cost effective and rich in oil resources, the company has increased its production. To ramp up production, it is currently engaged in pad drilling. In first quarter, it completed the drilling of 30 wells and plans to drill 175 wells by end of this year. With this, the company expects to raise its production from 65,000 mboed to 70,000 mboed this year.

Also, Hess Corp. (NYSE:HES) has announced a share repurchase program which will commence in the second half of this year. For this program, it is exiting from its under-performing businesses. The company has agreed to sell some part of its business in the Eagle Ford shale for $265 million and 100% stake of its Russian subsidiary, Samara-Nafta, for $2.05 billion.

The total proceeds from this sale are expected to be more than $7.5 billion. Of these, $2.5 billion will be used to repay short-term debt, $4 billion for the share repurchase program, and the remaining will be utilized for reducing debt, improving the balance sheet, increase liquidity, and to accelerate dividends. This asset sell-off program will continue through the end of next year.


Expansion and acquisition will strengthen Delphi’s position in China, as well as support the growth of multiple company segments, providing a strong opportunity for revenue.

Growing adoption of MyIT by companies will increase BMC’s customer base. This will lead to the generation of high revenue.

Hess Corp. (NYSE:HES) ’ share repurchase program will boost investors’ confidence in the company and the divestiture program will help sustain the company in the long run.

Therefore, I recommend a buy for all three stocks.

Shweta Dubey has no position in any stocks mentioned. The Motley Fool owns shares of BMC Software.

The article Billionaire Paul Singer Is Counting on These Companies originally appeared on and is written by Shweta Dubey.

Shweta is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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