Hess to Report Q4 Earnings: Here's What You Can Expect

Core Viewpoint - Hess Corporation is expected to report its fourth-quarter 2024 results on January 29, with earnings anticipated to be impacted by fluctuating commodity prices and production performance [1][4][7]. Earnings Performance - In the last reported quarter, Hess achieved earnings of $2.14 per share, surpassing the Zacks Consensus Estimate of$1.88, primarily due to increased oil equivalent production volumes [1]. - The company has consistently beaten earnings estimates in the past four quarters, with an average surprise of 29.03% [2]. - The Zacks Consensus Estimate for fourth-quarter earnings per share is $1.63, reflecting one upward and two downward revisions in the last 30 days, aligning with the prior year's reported figure [2] Revenue Expectations - The Zacks Consensus Estimate for revenues stands at$3.07 billion, indicating a 1.01% improvement from the same period last year [3]. Production Outlook - Hess is expected to maintain stable performance in the fourth quarter, supported by a strong production outlook from its premium untapped drilling locations in the Bakken shale and the Stabroek Block offshore Guyana [4]. Commodity Price Challenges - The spot price of West Texas Intermediate crude oil has decreased by 10.03% year over year and 7.44% sequentially, which may negatively affect Hess's profitability [5]. - Natural gas prices have also seen a significant decline, with Henry Hub spot natural gas averaging $2.44 per million British thermal units (MMBtu) in the fourth quarter, down from$2.74/MMBtu a year ago [6]. - The drop in commodity prices is expected to impact the profitability of exploration and production companies like Hess, with anticipated increases in unit costs per barrel of oil equivalent potentially raising input costs [7]. Earnings Prediction - Current analysis suggests that Hess may not achieve an earnings beat this quarter, with an Earnings ESP of -5.96% and a Zacks Rank of 3 (Hold) [8].