88 The Sector Strategist (continued ) I arrived at the following conclusions: & & & & Hess was an early leader in natural gas and oil explora- tion within the Bakken area, providing for excellent growth in earnings and revenue over the next five years. Despite the acquisitions of several promising oil and gas properties over the past several years, Hess actually improved its balance sheet. The firm has reduced its debt capitalization ratio from nearly 60% at the start of the decade to 24% by 2011. In the first quarter of 2011, Hess had reported a profit of $929 million, or $2.74 a share, up from $538 million, or $1.65 a share, a year earlier. Revenue had jumped an im- pressive 14% to $10.52 billion. Hess's stock had fallen by $30 a share from early May 2011 until the beginning of August, a drop of 35%. The