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Hess Q4 Earnings Beat Estimates, Revenues Rise Year Over Year
HESHess(HES) ZACKS·2025-01-29 17:05

Financial Performance - Hess Corporation reported fourth-quarter 2024 adjusted earnings per share (EPS) of 1.63,exceedingtheZacksConsensusEstimateof1.63, exceeding the Zacks Consensus Estimate of 1.51, with the bottom line remaining flat year over year [1] - Total quarterly revenues increased to 3,225millionfrom3,225 million from 3,035 million in the year-ago period, also beating the Zacks Consensus Estimate of 3,032million[1]ProductionandOperations−TheExplorationandProductionsegmentreportedadjustedearningsof3,032 million [1] Production and Operations - The Exploration and Production segment reported adjusted earnings of 529 million, slightly down from 531millionayearago,impactedbylowerrealizedcrudeandnaturalgasprices[3]−Quarterlyhydrocarbonproductiontotaled495thousandbarrelsofoilequivalentperday(MBoe/d),upfrom418MBoe/dintheprioryear,primarilyduetoincreasedproductioninGuyanaandBakken,surpassingtheestimateof479.3MBoe/d[3]−Crudeoilproductionrosefrom244MBbls/dinQ42023to315MBbls/d,exceedingtheestimateof303.6MBbls/d[4]−NGLproductionincreasedto79MBbls/dfrom73MBbls/dyear−over−year,alsobeatingtheestimateof74.9MBbls/d[4]−Naturalgasproductionslightlydecreasedto607thousandcubicfeetperday(Mcf/d)from608Mcf/dayearago,butwashigherthantheestimateof604.7Mcf/d[4]PricingandCosts−Worldwidecrudeoilrealizationperbarrelwas531 million a year ago, impacted by lower realized crude and natural gas prices [3] - Quarterly hydrocarbon production totaled 495 thousand barrels of oil equivalent per day (MBoe/d), up from 418 MBoe/d in the prior year, primarily due to increased production in Guyana and Bakken, surpassing the estimate of 479.3 MBoe/d [3] - Crude oil production rose from 244 MBbls/d in Q4 2023 to 315 MBbls/d, exceeding the estimate of 303.6 MBbls/d [4] - NGL production increased to 79 MBbls/d from 73 MBbls/d year-over-year, also beating the estimate of 74.9 MBbls/d [4] - Natural gas production slightly decreased to 607 thousand cubic feet per day (Mcf/d) from 608 Mcf/d a year ago, but was higher than the estimate of 604.7 Mcf/d [4] Pricing and Costs - Worldwide crude oil realization per barrel was 72.10, down from 78.95inthepreviousyear,whileglobalnaturalgaspricesdeclinedto78.95 in the previous year, while global natural gas prices declined to 4.10 per Mcf from 4.51[5]−AverageglobalNGLsellingpriceincreasedto4.51 [5] - Average global NGL selling price increased to 23.05 per barrel from 20.92year−over−year[5]−Operatingexpensestotaled20.92 year-over-year [5] - Operating expenses totaled 532 million, up from 473millionayearago,exceedingtheprojectionof473 million a year ago, exceeding the projection of 474 million [7] - Total costs and expenses decreased to 2,297millionfrom2,297 million from 2,350 million in the prior-year period [7] Financial Position - Net cash provided by operating activities was 1,312million,withcapitalexpenditureforexplorationandproductionactivitiestotaling1,312 million, with capital expenditure for exploration and production activities totaling 1,677 million [8] - As of December 31, 2024, the company had 1,171millionincashandcashequivalents,withlong−termdebtat1,171 million in cash and cash equivalents, with long-term debt at 8,555 million [8] Future Outlook - For Q1 2025, Hess expects exploration and production net production of 465-475 thousand barrels of oil equivalent per day [10] - The company forecasts total exploration and production capital and exploratory expenditure of $4.5 billion for the full year 2025 [10]