Hess(HES) - 2024 Q4 - Annual Results

Financial Performance - Net income for the fourth quarter of 2024 was $542 million, or$ 1.76 per share, compared to $413 million, or$ 1.34 per share, in the fourth quarter of 2023, reflecting a 31% increase in net income year-over-year[3] - Adjusted net income for the year ended December 31, 2024, was $2,983 million, a 92.5% increase from$ 1,552 million in 2023[35] - Total revenues and non-operating income for the year ended December 31, 2024, reached $13,018 million, compared to$ 10,645 million in 2023, reflecting a 22.3% growth[36] - The company reported a net income of $640 million for Q4 2024, up from$ 503 million in Q4 2023, representing a 27.3% increase[41] - For the year ended December 31, 2024, total revenues and non-operating income were $12,907 million, compared to$ 10,550 million in 2023, marking a 22.4% increase[50] - The company reported a net income of $2,780 million for the year ended December 31, 2024, compared to$ 1,601 million in 2023, reflecting a 73.2% increase[50] Production and Reserves - Oil and gas net production reached 495,000 barrels of oil equivalent per day (boepd), an 18% increase from 418,000 boepd in the fourth quarter of 2023[4] - Guyana net production surged to 195,000 barrels of oil per day (bopd), a 52% increase from 128,000 bopd in the fourth quarter of 2023[4] - Year-end proved reserves were estimated at 1.44 billion barrels of oil equivalent (boe), an increase from 1.37 billion boe at the end of 2023, with a reserve replacement rate of 138%[9] - Daily net production in Q4 2024 was 315,000 barrels of oil equivalent, a 29.1% increase from 244,000 barrels in Q4 2023[53] - Hess Corporation's total barrels of oil equivalent production for the year ended December 31, 2024, was 481,000 barrels per day, an increase from 394,000 barrels per day in 2023, representing a 22.0% growth[56] Capital Expenditures - E&P capital and exploratory expenditures totaled $1,677 million in the fourth quarter of 2024, up from$ 1,480 million in the prior-year quarter, including $635 million for the purchase of two floating production, storage, and offloading vessels[4] - Full year 2025 E&P capital and exploratory expenditures are expected to be approximately$ 4.5 billion, including capitalized interest of about $240 million[16] - Total capital and exploratory expenditures for 2024 amounted to$ 4,859 million, an increase from $4,176 million in 2023, reflecting a 16.3% rise[43] - The company incurred$ 1,720 million in capital expenditures in Q4 2024, compared to $1,518 million in Q4 2023, indicating a 13.3% increase[41] Cash Flow and Costs - Net cash provided by operating activities was$ 1,312 million in the fourth quarter of 2024, slightly down from $1,344 million in the prior-year quarter[19] - Net cash provided by operating activities before changes in operating assets and liabilities was$ 6,353 million for the year ended December 31, 2024, an increase of 41.3% from $4,494 million in 2023[35] - The company reported a net cash provided by operating activities of$ 5,600 million for the year ended December 31, 2024, compared to $3,942 million in 2023, marking a 42.1% increase[35] - Cash operating costs decreased to$ 12.95 per boe in the fourth quarter of 2024, compared to $13.29 per boe in the fourth quarter of 2023[8] Debt and Liabilities - The debt to capitalization ratio improved to 28.3% at December 31, 2024, down from 33.6% at December 31, 2023[18] - The debt to capitalization ratio for Hess Consolidated improved to 42.1% in 2024 from 47.8% in 2023[38] - Hess Corporation's total liabilities as of December 31, 2024, were$ 15,127 million, compared to $14,887 million in 2023, reflecting a slight increase[37] Pricing and Market Conditions - The average realized crude oil selling price was$ 72.10 per barrel in the fourth quarter of 2024, down from $76.63 per barrel in the prior-year quarter[6] - Average selling price of crude oil per barrel (including hedging) in the United States increased to$ 72.70 in 2024 from $70.80 in 2023, representing a growth of 2.5%[64] - Average selling price of crude oil per barrel (excluding hedging) in Guyana decreased to$ 80.04 in 2024 from $82.20 in 2023, a decline of 2.6%[64] - Average selling price of natural gas liquids per barrel in North Dakota increased to$ 21.75 in 2024 from $20.77 in 2023, an increase of 4.7%[64] - Average selling price of natural gas per mcf in the United States decreased to$ 1.25 in 2024 from $1.76 in 2023, a decline of 29.0%[64] Future Outlook - Hess Corporation is currently in the process of a merger with Chevron Corporation, which may impact future financial results and operational strategies[27] - The company anticipates continued growth in crude oil and natural gas production, with a focus on sustainability and environmental initiatives[28]