Hess (HES) Q4 2024 earnings summary

Executive summary

• Adjusted net income for 4Q 2024 was $542 million ($1.76/share), up from $501 million ($1.63/share) in 4Q 2023, but down from $660 million in 3Q 2024.

• Oil and gas net production rose 18% year-over-year to 495,000 boepd, driven by Guyana and Bakken growth.

• Year-end proved reserves reached 1,438 million BOE, with organic reserve replacement at 138% and finding/development cost of $19.67/BOE.

• E&P capital and exploratory expenditures were $1,677 million in 4Q 2024, including $635 million for FPSO purchases.

• Adjusted net income growth year-over-year was driven by higher production volumes, especially in Guyana, and improved midstream throughput.

Financial highlights

• 4Q 2024 reported net income attributable was $542 million, up from $413 million in 4Q 2023.

• 4Q 2024 revenues were $3,225 million, up from $3,052 million in 4Q 2023.

• Full-year 2024 adjusted net income was $2,983 million, up from $1,552 million in 2023.

• Net cash provided by operating activities was $1,312 million in 4Q 2024.

• Debt to capitalization ratio improved to 28.3% at year-end 2024 from 33.6% a year earlier.

Outlook and guidance

• 1Q 2025 production guidance: 465,000–475,000 boepd, with Bakken at 195,000–200,000 and Guyana at 180,000–185,000 boepd.

• 2025 E&P capital and exploratory expenditures forecasted at ~$4.5 billion, including $240 million in capitalized interest.

• 1Q 2025 unit cash costs expected at $12.50/BOE, DD&A at $13.00–$13.50/BOE.