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Hess Q1 Earnings Beat Estimates, Hydrocarbon Production Flat Y/Y
HESHess(HES) ZACKS·2025-04-30 19:00

Financial Performance - Hess Corporation reported first-quarter 2025 adjusted earnings per share (EPS) of 1.81,beatingtheZacksConsensusEstimateof1.81, beating the Zacks Consensus Estimate of 1.77, but down from 3.16inthesamequarterlastyear[1]−Totalquarterlyrevenuesdecreasedto3.16 in the same quarter last year [1] - Total quarterly revenues decreased to 2,938 million from 3,341millionyear−over−year,althoughitsurpassedtheZacksConsensusEstimateof3,341 million year-over-year, although it surpassed the Zacks Consensus Estimate of 2,901 million [1] - Adjusted earnings from the exploration and production segment were 563million,significantlydownfrom563 million, significantly down from 997 million a year ago due to lower realized crude oil prices [2] Production Metrics - Quarterly hydrocarbon production totaled 476 thousand barrels of oil equivalent per day (MBoe/d), flat year-over-year, and exceeded the estimate of 470.7 MBoe/d [2] - Crude oil production was 304 thousand barrels per day (MBbls/d), slightly down from 305 MBbls/d in the prior year, but above the estimate of 299.1 MBbls/d [3] - NGL production increased to 76 MBbls/d from 71 MBbls/d year-over-year, also beating the estimate of 72.7 MBbls/d [3] - Natural gas production decreased to 574 thousand cubic feet per day (Mcf/d) from 599 Mcf/d a year ago, missing the estimate of 593.2 Mcf/d [3] Pricing and Costs - Worldwide crude oil realization per barrel was 71.22,downfrom71.22, down from 80.06 in the previous year, while global natural gas prices rose to 4.89perMcffrom4.89 per Mcf from 4.62 [4] - Average global NGL selling price increased to 24.08perbarrelfrom24.08 per barrel from 22.97 year-over-year [4] - Operating expenses totaled 470million,upfrom470 million, up from 412 million a year ago, exceeding the projection of 425.2million[6]−Totalcostsandexpensesincreasedto425.2 million [6] - Total costs and expenses increased to 2,157 million from 1,926millionintheprior−yearperiod[6]CashFlowandDebt−Netcashprovidedbyoperatingactivitieswas1,926 million in the prior-year period [6] Cash Flow and Debt - Net cash provided by operating activities was 1,401 million, with capital expenditure for exploration and production activities totaling 1,085million[7]−AsofMarch31,2025,thecompanyhad1,085 million [7] - As of March 31, 2025, the company had 1,324 million in cash and cash equivalents, while long-term debt stood at 8,654million[7]FutureOutlook−Forthesecondquarterof2025,Hessexpectsnetproductionfromtheexplorationandproductionbusinesstobeintherangeof480−490thousandbarrelsofoilequivalentperday[9]−ThefourthoildevelopmentintheStarbroekBlock,Yellowtail,isexpectedtostartupinthethirdquarterof2025[9]−Thecompanyforecaststotalexplorationandproductioncapitalandexploratoryexpenditureof8,654 million [7] Future Outlook - For the second quarter of 2025, Hess expects net production from the exploration and production business to be in the range of 480-490 thousand barrels of oil equivalent per day [9] - The fourth oil development in the Starbroek Block, Yellowtail, is expected to start up in the third quarter of 2025 [9] - The company forecasts total exploration and production capital and exploratory expenditure of 4.5 billion for the full year 2025 [9]