Hess (HES) Q3 2024 earnings summary

Executive summary

• Adjusted net income for Q3 2024 was $660 million ($2.14/share), up from $504 million ($1.64/share) in Q3 2023, but down from $809 million in Q2 2024, driven by higher production volumes but lower realized prices sequentially.

• Reported net income for Q3 2024 was $498 million ($1.62/share), compared to $504 million ($1.64/share) in Q3 2023 and $757 million in Q2 2024.

• E&P oil and gas net production increased 17% year-over-year to 461,000 boepd, led by Guyana and Bakken growth.

• Quarterly dividend increased 14% to $0.50/share ($2.00 annualized), effective Q3 2024.

• 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 mid-2025.

Financial highlights

• Q3 2024 revenues were $3,232 million, up from $2,837 million in Q3 2023; nine-month revenues reached $9.8 billion, up from $7.6 billion year-over-year.

• Adjusted net income for Q3 2024 was $660 million, up from $504 million in Q3 2023, reflecting higher production volumes.

• Cash operating costs per boe decreased to $13.84 in Q3 2024 from $14.04 in Q3 2023.

• Net cash from operating activities rose to $1,510 million in Q3 2024 from $986 million in Q3 2023.

• E&P capital and exploratory expenditures were $1,104 million in Q3 2024, up from $998 million in Q3 2023.

Outlook and guidance

• Full-year 2024 E&P capital and exploratory expenditures are guided at $4.9 billion, up from prior guidance of $4.2 billion, due to accelerated FPSO purchases.

• Q4 2024 net production is forecasted at 475,000–485,000 boepd; Bakken at 200,000–205,000 boepd and Guyana at 185,000–190,000 bopd.

• Midstream net income attributable to Hess is guided at $70–$75 million for Q4 2024.

• Cash costs per BOE are expected at $13.50–$14.00 and DD&A at $14.00–$14.50 for Q4 2024.

• E&P income tax expense for Q4 2024 expected to be $250–$260 million.