Hess (HES) Q2 2024 earnings summary

Executive summary

• Net income for 2Q 2024 was $757 million, up from $119 million in 2Q 2023; adjusted net income was $809 million, driven by higher production and realized prices, especially in Guyana.

• Oil and gas net production increased to 494,000 boepd, with Guyana up 75% and Bakken up 17% year-over-year.

• E&P capital and exploratory expenditures were $1,151 million, up from $933 million in 2Q 2023, reflecting higher activity in Guyana, Bakken, and Gulf of Mexico.

• The Chevron merger was approved by stockholders, with regulatory reviews and Stabroek ROFR arbitration ongoing.

Financial highlights

• 2Q 2024 revenues were $3.26 billion, up from $2.32 billion in 2Q 2023; six-month revenues reached $6.5 billion.

• Adjusted net income per diluted share was $2.62 in 2Q 2024, up from $0.65 in 2Q 2023.

• Net cash from operating activities for the first six months was $2.8 billion, up from $1.6 billion in 2023.

• Cash and cash equivalents at June 30, 2024, were $2.0 billion.

• Debt to capitalization ratio improved to 30.8% at June 30, 2024, from 33.6% at year-end 2023.

Outlook and guidance

• 3Q 2024 production guidance is 460,000–470,000 boepd, with Bakken at 200,000–205,000 boepd and Guyana at 170,000–175,000 bopd.

• 3Q 2024 cash costs expected at $13.50–$14.00/boe, DD&A at $14.00/boe, and total production costs at $27.50–$28.00/boe.

• E&P capital and exploratory expenditures guidance for 3Q 2024 is $1,125 million.

• E&P income tax expense for 3Q 2024 expected to be $265–$275 million; Midstream net income guidance is $65–$70 million.