Hess (HES) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 was $430 million, down from $972 million in Q1 2024, with adjusted net income at $559 million due to lower oil prices and sales volumes and a $129 million legal settlement charge.

• Oil and gas production averaged 476,000 boepd, flat year-over-year; realized crude oil price fell to $71.22/bbl from $80.06/bbl.

• E&P capital and exploratory expenditures rose to $1,085 million from $927 million.

• The merger with Chevron was approved by shareholders but is pending arbitration regarding the Stabroek Block right of first refusal, with a decision expected in Q3 2025.

• The Yellowtail project in Guyana is on track for Q3 2025 startup, with the FPSO arriving offshore in April.

Financial highlights

• Total revenues for Q1 2025 were $2,938 million, down from $3,341 million in Q1 2024.

• Net cash provided by operating activities was $1,401 million, up from $885 million in Q1 2024.

• Cash and cash equivalents at March 31, 2025, were $1,324 million; total debt was $8,679 million.

• Debt to capitalization ratio was 27.8% at March 31, 2025.

• Common stock dividends paid were $157 million in Q1 2025.

Outlook and guidance

• Q2 2025 E&P net production is forecast at 480,000–490,000 boepd; Bakken at 210,000–215,000 boepd.

• Guyana net production guidance for Q2 2025 is approximately 180,000 bopd; 15 cargos of crude oil expected to be sold.

• Full-year 2025 E&P capital and exploratory expenditures are projected at $4.5 billion.

• Cash costs per BOE are expected to be $13.50 in Q2 2025; 1Q actual was $12.27.

• Cash flow from operations and current cash are expected to fund capital and return programs for 2025.