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Why Is Hess (HES) Up 0.7% Since Last Earnings Report?
HESHess(HES) ZACKS·2025-02-28 17:36

Core Viewpoint - Hess Corporation reported better-than-expected fourth-quarter earnings, driven by increased production volumes despite lower crude and natural gas prices [2][3]. Financial Performance - Adjusted EPS for Q4 2024 was 1.76,exceedingtheZacksConsensusEstimateof1.76, exceeding the Zacks Consensus Estimate of 1.51, remaining flat year-over-year [2]. - Total quarterly revenues rose to 3,225millionfrom3,225 million from 3,035 million year-over-year, surpassing the Zacks Consensus Estimate of 3,032million[2].ProductionandCosts−ExplorationandProductionsegmentreportedadjustedearningsof3,032 million [2]. Production and Costs - Exploration and Production segment reported adjusted earnings of 529 million, slightly down from 531millionayearago,impactedbylowerrealizedprices[4].−Hydrocarbonproductionincreasedto495MBoe/dfrom418MBoe/dyear−over−year,primarilyduetohigheroutputinGuyanaandBakken[4].−Crudeoilproductionroseto315MBbls/dfrom244MBbls/dyear−over−year,exceedingestimates[5].−Operatingexpensestotaled531 million a year ago, impacted by lower realized prices [4]. - Hydrocarbon production increased to 495 MBoe/d from 418 MBoe/d year-over-year, primarily due to higher output in Guyana and Bakken [4]. - Crude oil production rose to 315 MBbls/d from 244 MBbls/d year-over-year, exceeding estimates [5]. - Operating expenses totaled 532 million, up from 473millionayearago,withexplorationexpensesincreasingto473 million a year ago, with exploration expenses increasing to 139 million from 87million[8].PricingTrends−Worldwidecrudeoilrealizationperbarreldecreasedto87 million [8]. Pricing Trends - Worldwide crude oil realization per barrel decreased to 72.10 from 78.95year−over−year,whilenaturalgaspricesfellto78.95 year-over-year, while natural gas prices fell to 4.10 per Mcf from 4.51[6].FinancialPosition−Netcashprovidedbyoperatingactivitieswas4.51 [6]. Financial Position - Net cash provided by operating activities was 1,312 million, with capital expenditures for exploration and production at 1,677million[9].−AsofDecember31,2024,cashandcashequivalentsstoodat1,677 million [9]. - As of December 31, 2024, cash and cash equivalents stood at 1,171 million, with long-term debt at 8,555million[10].FutureOutlook−ForQ12025,Hessexpectsnetproductionof465−475MBoe/dandforecaststotalcapitalandexploratoryexpenditureof8,555 million [10]. Future Outlook - For Q1 2025, Hess expects net production of 465-475 MBoe/d and forecasts total capital and exploratory expenditure of 4.5 billion for 2025 [11]. - Recent estimates have shown a 9.52% upward revision trend, indicating positive market sentiment [12].