Hess's stock tumbles to reverse earlier gains after 2017 production and budget outlook disappoints

Hess Corp.'s stock tumbled 7.6% in morning trade, enough to make it the biggest decliner in the S&P 500 , after the oil and gas exploration company provided before the open its 2017 budget and production outlook. The selloff reverses a premarket gain of as much as 5.1%. Analyst Charles Robertson at Cowen & Co. said Hess's 2017 guidance was lower than expected, as it suggests the ramp in the Bakken region is taking longer than forecast. He said the company's 2017 production outlook of 300 million to 310 million barrels of oil equivalent per day, excluding Libya, was below consensus expectations of about 320 million, while the company's capital expenditure budget of $2.25 billion was below expectations of about $2.4 billion. The stock was now up 10% over the past three months, while the SPDR Energy Select Sector ETF was up 5.8% and the S&P 500 has gained 5.6%.

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