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Hess Reports Estimated Results for the First Quarter of 2024

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Hess reported impressive first-quarter financial results with net income of $972 million, or $3.16 per share, compared to $346 million, or $1.13 per share, in the same period last year. The company sanctioned the development of Whiptail, expected to add 250,000 barrels of oil per day by 2027. Exploration and Production (E&P) net income saw a significant increase to $997 million, with higher production volumes in Guyana and the Bakken. The Bakken net production was up by 17%, while Guyana saw a 70% increase in production. Despite a decrease in Gulf of Mexico production, overall production was up by 27%. The Midstream segment reported a net income of $67 million. E&P capital expenditures were $927 million, and full-year expenditures are expected to be around $4.2 billion. The company had cash and cash equivalents of $1.4 billion and debt of $5.6 billion at the end of the quarter.
Hess ha riportato risultati finanziari del primo trimestre impressionanti con un utile netto di 972 milioni di dollari, ovvero 3,16 dollari per azione, rispetto ai 346 milioni di dollari, ovvero 1,13 dollari per azione, nello stesso periodo dell'anno scorso. L'azienda ha approvato lo sviluppo di Whiptail, che si prevede aggiungerà 250.000 barili di petrolio al giorno entro il 2027. L'utile netto della divisione Esplorazione e Produzione (E&P) è aumentato significativamente, raggiungendo i 997 milioni di dollari, grazie a volumi di produzione più elevati in Guyana e nel Bakken. La produzione netta nel Bakken è aumentata del 17%, mentre in Guyana la produzione è cresciuta del 70%. Nonostante una diminuzione della produzione nel Golfo del Messico, la produzione complessiva è aumentata del 27%. Il segmento Midstream ha registrato un utile netto di 67 milioni di dollari. Le spese in conto capitale dell'E&P sono state di 927 milioni di dollari, e si prevede che le spese totali per l'anno saranno di circa 4,2 miliardi di dollari. L'azienda aveva disponibilità liquide per 1,4 miliardi di dollari e debiti per 5,6 miliardi di dollari alla fine del trimestre.
Hess reportó resultados financieros impresionantes para el primer trimestre, con un ingreso neto de 972 millones de dólares, o 3,16 dólares por acción, comparado con 346 millones de dólares, o 1,13 dólares por acción, en el mismo período del año pasado. La compañía aprobó el desarrollo de Whiptail, que se espera añada 250.000 barriles de petróleo por día para el 2027. El ingreso neto de Exploración y Producción (E&P) aumentó significativamente a 997 millones de dólares, con mayores volúmenes de producción en Guyana y Bakken. La producción neta de Bakken aumentó un 17%, mientras que la producción en Guyana incrementó un 70%. A pesar de una disminución en la producción en el Golfo de México, la producción total aumentó un 27%. El segmento de Midstream reportó un ingreso neto de 67 millones de dólares. El gasto de capital de E&P fue de 927 millones de dólares, y se espera que los gastos totales del año ronden los 4,2 mil millones de dólares. La empresa contaba con efectivo y equivalentes de efectivo de 1.4 mil millones de dólares y una deuda de 5.6 mil millones de dólares al final del trimestre.
Hess는 올해 첫 분기에 인상적인 재무 결과를 발표했으며 순수익은 9억 7200만 달러, 주당 3.16달러였습니다. 이는 작년 같은 기간 3억 4600만 달러, 주당 1.13달러와 비교되는 수치입니다. 회사는 Whiptail 개발을 승인했으며, 이는 2027년까지 하루 25만 배럴의 석유를 추가할 것으로 예상됩니다. 탐사 및 생산(E&P) 부문의 순수익은 9억 9700만 달러로 크게 증가했으며, Guyana와 Bakken에서 생산량이 증가했습니다. Bakken의 순생산량은 17% 증가했으며, Guyana의 생산량은 70% 증가했습니다. 멕시코만의 생산 감소에도 불구하고 총 생산량은 27% 증가했습니다. 중간 유통 부문은 6700만 달러의 순이익을 보고했습니다. E&P 자본 지출은 9억 2700만 달러였으며, 연간 지출은 약 42억 달러가 될 것으로 예상됩니다. 분기 말 기준으로 회사는 14억 달러의 현금 및 현금성 자산과 56억 달러의 부채를 보유했습니다.
Hess a rapporté des résultats financiers impressionnants pour le premier trimestre, avec un bénéfice net de 972 millions de dollars, soit 3,16 dollars par action, contre 346 millions de dollars, soit 1,13 dollar par action, à la même période l'an dernier. La société a approuvé le développement de Whiptail, qui devrait ajouter 250 000 barils de pétrole par jour d'ici 2027. Le bénéfice net du secteur Exploration et Production (E&P) a considérablement augmenté pour atteindre 997 millions de dollars, grâce à des volumes de production plus élevés en Guyana et dans le Bakken. La production nette dans le Bakken a augmenté de 17 %, tandis que la production en Guyana a vu une augmentation de 70 %. Malgré une baisse de la production dans le golfe du Mexique, la production globale a augmenté de 27 %. La segment Midstream a déclaré un bénéfice net de 67 millions de dollars. Les dépenses en capital pour l'E&P étaient de 927 millions de dollars, et les dépenses totales pour l'année devraient atteindre environ 4,2 milliards de dollars. La société disposait de 1,4 milliard de dollars en espèces et équivalents de caisse et d'une dette de 5,6 milliards de dollars à la fin du trimestre.
Hess berichtete beeindruckende finanzielle Ergebnisse für das erste Quartal mit einem Nettogewinn von 972 Millionen Dollar oder 3,16 Dollar pro Aktie, verglichen mit 346 Millionen Dollar oder 1,13 Dollar pro Aktie im gleichen Zeitraum des Vorjahres. Das Unternehmen genehmigte die Entwicklung von Whiptail, von der erwartet wird, dass sie bis 2027 täglich 250.000 Barrel Öl hinzufügt. Das Nettoergebnis im Bereich Exploration und Produktion (E&P) stieg deutlich auf 997 Millionen Dollar, getrieben durch höhere Produktionsmengen in Guyana und dem Bakken. Die Nettoproduktion im Bakken stieg um 17 %, während die Produktion in Guyana um 70 % zunahm. Trotz eines Rückgangs der Produktion im Golf von Mexiko stieg die Gesamtproduktion um 27 %. Der Midstream-Bereich meldete einen Nettogewinn von 67 Millionen Dollar. Die Kapitalausgaben für E&P beliefen sich auf 927 Millionen Dollar, und die erwarteten Gesamtausgaben für das Jahr liegen bei etwa 4,2 Milliarden Dollar. Das Unternehmen verfügte am Ende des Quartals über 1,4 Milliarden Dollar in bar und gleichwertigen Mitteln sowie über Schulden in Höhe von 5,6 Milliarden Dollar.
Positive
  • Hess reported net income of $972 million, or $3.16 per share, in the first quarter of 2024, compared to $346 million, or $1.13 per share, in the first quarter of 2023.
  • The company sanctioned the development of Whiptail, adding an estimated 250,000 barrels of oil per day by the end of 2027.
  • Exploration and Production (E&P) net income increased to $997 million in the first quarter of 2024, compared to $405 million in the same period in 2023.
  • Bakken net production increased by 17%, while Guyana saw a 70% increase in production.
  • E&P capital expenditures were $927 million in the first quarter of 2024, with full-year expenditures expected to be around $4.2 billion.
  • The company had cash and cash equivalents of $1.4 billion and debt of $5.6 billion at the end of the quarter.
Negative
  • None.

Insights

Hess Corporation's announcement of $972 million in net income for Q1 of 2024, which marks a significant increase from $346 million the previous year, reflects a company scaling up effectively. This performance surge appears prominently in the E&P segment, with net production escalating from 374,000 boepd to 476,000 boepd. Such a boost in production, particularly from Guyana and the Bakken region, underscores Hess's strategic drilling and completion activities. Investors would note the 70% increase in Guyana production as a pivotal contribution to this success.

The sanctioning of the Whiptail development, expected to contribute an additional 250,000 bopd by end of 2027, suggests long-term production growth potential for Hess, enhancing its reserves and future cash flow prospects. The average realized crude oil selling price increase to $80.06 per barrel compared to $74.23 reflects a favorable pricing environment, albeit with a slight downturn in NGL selling prices. Attention to the E&P capital expenditure, which climbed to $927 million, also conveys an aggressive investment in resource development that could enrich the company’s future performance, provided that the commodity pricing environment remains supportive.

The company's debt-to-capitalization ratio decreasing from 33.6% to 31.9% indicates an improved capital structure, potentially reducing risk for debt holders and equity investors alike. With cash and cash equivalents at $1.4 billion and a robust net cash provided by operating activities, which has increased year-over-year, Hess demonstrates liquidity that can support further expansion and service its debt. These factors contribute to a financial health perspective that can be pivotal when assessing the company's ability to sustain and fund its operations and growth strategy.

Key Development:

  • Sanctioned development of Whiptail, the sixth development on the Stabroek Block, offshore Guyana; expected to add gross production capacity of approximately 250,000 barrels of oil per day (bopd) by the end of 2027

First Quarter Financial and Operational Highlights:

  • Net income was $972 million, or $3.16 per share, compared with net income of $346 million, or $1.13 per share, in the first quarter of 2023
  • Oil and gas net production was 476,000 barrels of oil equivalent per day (boepd), up 27% from 374,000 boepd in the first quarter of 2023
  • Bakken net production was 190,000 boepd, up 17% from 163,000 boepd in the first quarter of 2023; Guyana net production was 190,000 bopd, up 70% from 112,000 bopd in the prior-year quarter
  • E&P capital and exploratory expenditures were $927 million, compared with $765 million in the prior-year quarter

NEW YORK--(BUSINESS WIRE)--    Hess Corporation (NYSE: HES) today reported net income of $972 million, or $3.16 per share, in the first quarter of 2024, compared with net income of $346 million, or $1.13 per share, in the first quarter of 2023. The increase in after-tax earnings compared with the prior-year quarter primarily reflects higher production volumes in the first quarter of 2024.

   After-tax income (loss) by major operating activity was as follows:

 

Three Months Ended

March 31,

(unaudited)

 

 

2024

 

2023

 

(In millions, except per share amounts)

Net Income Attributable to Hess Corporation

Exploration and Production

$

997

$

405

Midstream

 

67

 

61

Corporate, Interest and Other

 

(92)

 

(120)

Net income attributable to Hess Corporation

$

972

$

346

Net income per share (diluted)

$

3.16

$

1.13

 

 

 

Weighted average number of shares (diluted)

 

307.9

 

307.3

Exploration and Production:

   E&P net income was $997 million in the first quarter of 2024, compared with $405 million in the first quarter of 2023. The Corporation’s average realized crude oil selling price was $80.06 per barrel in the first quarter of 2024, compared with $74.23 per barrel, including the effect of hedging, in the prior-year quarter. The average realized natural gas liquids (NGL) selling price in the first quarter of 2024 was $22.97 per barrel, compared with $24.25 per barrel in the prior-year quarter, while the average realized natural gas selling price was $4.62 per mcf, compared with $4.39 per mcf in the first quarter of 2023.

   Net production was 476,000 boepd in the first quarter of 2024, compared with 374,000 boepd in the first quarter of 2023, primarily due to higher production in Guyana and the Bakken. In the second quarter of 2024, E&P net production is expected to be in the range of 465,000 boepd to 475,000 boepd, reflecting planned maintenance in the Gulf of Mexico partially offset by growth in the Bakken.

   Cash operating costs, which include operating costs and expenses, production and severance taxes, and E&P general and administrative expenses, were $10.79 per barrel of oil equivalent (boe) in the first quarter of 2024, compared with $12.96 per boe in the prior-year quarter, primarily due to higher production volumes.

Operational Highlights for the First Quarter of 2024:

   Bakken (Onshore U.S.): Net production from the Bakken was 190,000 boepd in the first quarter of 2024, compared with 163,000 boepd in the prior-year quarter, primarily reflecting increased drilling and completion activity as well as higher NGL and natural gas volumes received under percentage of proceeds contracts due to lower commodity prices. NGL and natural gas volumes received under percentage of proceeds contracts were 19,000 boepd in the first quarter of 2024, compared with 14,000 boepd in the first quarter of 2023, due to increasing volumes received as consideration for gas processing fees. During the first quarter of 2024, the Corporation operated four rigs and drilled 31 wells, completed 21 wells, and brought 34 new wells online. The Corporation plans to continue operating four drilling rigs in 2024.

   Gulf of Mexico (Offshore U.S.): Net production from the Gulf of Mexico in the first quarter of 2024 was 31,000 boepd, compared with 33,000 boepd in the prior-year quarter.

   Guyana (Offshore): At the Stabroek Block (Hess – 30%), net production totaled 190,0001 bopd in the first quarter of 2024, compared with 112,0001 bopd in the prior-year quarter. The third development on the block, Payara, which commenced production in November 2023, reached its initial production capacity of approximately 220,000 gross bopd in January 2024. In the first quarter of 2024, 15 cargos of crude oil were sold from Guyana, compared with nine cargos in the prior-year quarter. In the second quarter of 2024, 13 cargos of crude oil are expected to be sold.

   The fourth development on the block, Yellowtail, was sanctioned in April 2022 with a production capacity of approximately 250,000 gross bopd and first production expected in 2025. The fifth development, Uaru, was sanctioned in April 2023 with a production capacity of approximately 250,000 gross bopd and first production expected in 2026. The sixth development, Whiptail, was sanctioned in April 2024 and is expected to add production capacity of approximately 250,000 gross bopd by the end of 2027.

   The successful Bluefin-1 exploration well encountered approximately 197 feet of high-quality hydrocarbon bearing sandstone reservoirs. The well was drilled in 4,244 feet of water and is located approximately 5 miles southeast of the Sailfin-1 discovery.

   Southeast Asia (Offshore): Net production at North Malay Basin and JDA was 65,000 boepd in the first quarter of 2024, compared with 66,000 boepd in the prior-year quarter.

Midstream:

   The Midstream segment had net income of $67 million in the first quarter of 2024, compared with net income of $61 million in the prior-year quarter.

   In March 2024, Hess Midstream Operations LP (HESM Opco), a consolidated subsidiary of Hess Midstream LP (HESM), repurchased approximately 2.8 million HESM Opco Class B units held by Hess Corporation and Global Infrastructure Partners for $100 million, of which the Corporation received $38 million. The repurchase of the Class B units was financed by HESM Opco’s revolving credit facility. The Corporation continues to own approximately 37.8% of HESM on a consolidated basis.

Corporate, Interest and Other:

   After-tax expense for Corporate, Interest and Other was $92 million in the first quarter of 2024, compared with $120 million in the first quarter of 2023. Corporate and other expenses decreased by $11 million in the first quarter of 2024, primarily due to lower legal and professional fees. Interest expense decreased by $17 million in the first quarter of 2024, reflecting higher capitalized interest.

Capital and Exploratory Expenditures:

   E&P capital and exploratory expenditures were $927 million in the first quarter of 2024, compared with $765 million in the prior-year quarter, primarily due to increased drilling activity in the Gulf of Mexico. Full year 2024 E&P capital and exploratory expenditures are expected to be approximately $4.2 billion.

   Midstream capital expenditures were $35 million in the first quarter of 2024 and $57 million in the prior-year quarter.

Liquidity:

   Excluding the Midstream segment, Hess Corporation had cash and cash equivalents of $1.4 billion and debt and finance lease obligations totaling $5.6 billion at March 31, 2024. The Midstream segment had cash and cash equivalents of $5 million and total debt of $3.3 billion at March 31, 2024. The Corporation’s debt to capitalization ratio as defined in its debt covenants was 31.9% at March 31, 2024 and 33.6% at December 31, 2023.

   Net cash provided by operating activities was $885 million in the first quarter of 2024, compared with $638 million in the first quarter of 2023. Net cash provided by operating activities before changes in operating assets and liabilities2 was $1,729 million in the first quarter of 2024, compared with $1,032 million in the prior-year quarter, primarily due to higher production volumes. Changes in operating assets and liabilities decreased cash flow from operating activities by $844 million in the first quarter of 2024, primarily due to an increase in accounts receivable related to Guyana oil liftings and a decrease in accrued liabilities which includes a payment in connection with the HONX, Inc. settlement. Changes in operating assets and liabilities decreased cash flow from operating activities by $394 million in the first quarter of 2023.

1. Net production from Guyana included 33,000 bopd of tax barrels in the first quarter of 2024 and 15,000 bopd of tax barrels in the first quarter of 2023.

2. “Net cash provided by (used in) operating activities before changes in operating assets and liabilities” is a non-GAAP financial measure. The reconciliation to its nearest GAAP equivalent measure, and its definition, appear on pages 5 and 6, respectively.

Reconciliation of U.S. GAAP to Non-GAAP Measure:

   The following table reconciles reported net cash provided by (used in) operating activities from net cash provided by (used in) operating activities before changes in operating assets and liabilities:

 

Three Months Ended

March 31,

(unaudited)

 

2024

2023

 

(In millions)

Net cash provided by (used in) operating activities before changes in operating assets and liabilities

$

1,729

$

1,032

Changes in operating assets and liabilities

 

(844)

 

(394)

Net cash provided by (used in) operating activities

$

885

$

638

Investor Conference Call:

   Due to the pending merger with Chevron Corporation (Chevron), the Corporation will not host a conference call to review its first quarter 2024 results.

   Hess Corporation is a leading global independent energy company engaged in the exploration and production of crude oil and natural gas. More information on Hess Corporation is available at www.hess.com.

Forward-looking Statements

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words such as “anticipate,” “estimate,” “expect,” “forecast,” “guidance,” “could,” “may,” “should,” “would,” “believe,” “intend,” “project,” “plan,” “predict,” “will,” “target” and similar expressions identify forward-looking statements, which are not historical in nature. Our forward-looking statements may include, without limitation: our future financial and operational results; our business strategy; estimates of our crude oil and natural gas reserves and levels of production; benchmark prices of crude oil, NGL and natural gas and our associated realized price differentials; our projected budget and capital and exploratory expenditures; expected timing and completion of our development projects; information about sustainability goals and targets and planned social, safety and environmental policies, programs and initiatives; future economic and market conditions in the oil and gas industry; and expected timing and completion of our proposed merger with Chevron.

Forward-looking statements are based on our current understanding, assessments, estimates and projections of relevant factors and reasonable assumptions about the future. Forward-looking statements are subject to certain known and unknown risks and uncertainties that could cause actual results to differ materially from our historical experience and our current projections or expectations of future results expressed or implied by these forward-looking statements. The following important factors could cause actual results to differ materially from those in our forward-looking statements: fluctuations in market prices of crude oil, NGL and natural gas and competition in the oil and gas exploration and production industry; reduced demand for our products, including due to perceptions regarding the oil and gas industry, competing or alternative energy products and political conditions and events; potential failures or delays in increasing oil and gas reserves, including as a result of unsuccessful exploration activity, drilling risks and unforeseen reservoir conditions, and in achieving expected production levels; changes in tax, property, contract and other laws, regulations and governmental actions applicable to our business, including legislative and regulatory initiatives regarding environmental concerns, such as measures to limit greenhouse gas emissions and flaring, fracking bans as well as restrictions on oil and gas leases; operational changes and expenditures due to climate change and sustainability related initiatives; disruption or interruption of our operations due to catastrophic and other events, such as accidents, severe weather, geological events, shortages of skilled labor, cyber-attacks, public health measures, or climate change; the ability of our contractual counterparties to satisfy their obligations to us, including the operation of joint ventures under which we may not control and exposure to decommissioning liabilities for divested assets in the event the current or future owners are unable to perform; unexpected changes in technical requirements for constructing, modifying or operating exploration and production facilities and/or the inability to timely obtain or maintain necessary permits; availability and costs of employees and other personnel, drilling rigs, equipment, supplies and other required services; any limitations on our access to capital or increase in our cost of capital, including as a result of limitations on investment in oil and gas activities, rising interest rates or negative outcomes within commodity and financial markets; liability resulting from environmental obligations and litigation, including heightened risks associated with being a general partner of HESM; risks and uncertainties associated with our proposed merger with Chevron; and other factors described in Item 1A—Risk Factors in our Annual Report on Form 10-K and any additional risks described in our other filings with the Securities and Exchange Commission (SEC).

As and when made, we believe that our forward-looking statements are reasonable. However, given these risks and uncertainties, caution should be taken not to place undue reliance on any such forward-looking statements since such statements speak only as of the date when made and there can be no assurance that such forward-looking statements will occur and actual results may differ materially from those contained in any forward-looking statement we make. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events or otherwise.

Non-GAAP financial measure

The Corporation has used a non-GAAP financial measure in this earnings release. “Net cash provided by (used in) operating activities before changes in operating assets and liabilities” presented in this release is defined as Net cash provided by (used in) operating activities excluding changes in operating assets and liabilities. Management believes that net cash provided by (used in) operating activities before changes in operating assets and liabilities demonstrates the Corporation’s ability to internally fund capital expenditures, pay dividends and service debt. This measure is not, and should not be viewed as, a substitute for U.S. GAAP net cash provided by (used in) operating activities. A reconciliation of net cash provided by (used in) operating activities (U.S. GAAP) to net cash provided by (used in) operating activities before changes in operating assets and liabilities is provided in the release.

Cautionary Note to Investors

We use certain terms in this release relating to resources other than proved reserves, such as unproved reserves or resources. Investors are urged to consider closely the oil and gas disclosures in Hess Corporation’s Form 10-K, File No. 1-1204, available from Hess Corporation, 1185 Avenue of the Americas, New York, New York 10036 c/o Corporate Secretary and on our website at www.hess.com. You can also obtain this form from the SEC on the EDGAR system.

 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

 

 

First

Quarter

2024

 

First

Quarter

2023

 

Fourth

Quarter

2023

Income Statement

 

 

 

 

 

Revenues and non-operating income

 

 

 

 

 

Sales and other operating revenues

$

3,309

 

$

2,411

 

$

3,011

Other, net

 

32

 

 

42

 

 

24

Total revenues and non-operating income

 

3,341

 

 

2,453

 

 

3,035

Costs and expenses

 

 

 

 

 

Marketing, including purchased oil and gas

 

622

 

 

603

 

 

886

Operating costs and expenses

 

412

 

 

382

 

 

473

Production and severance taxes

 

56

 

 

48

 

 

61

Exploration expenses, including dry holes and lease impairment

 

42

 

 

66

 

 

87

General and administrative expenses

 

124

 

 

136

 

 

168

Interest expense

 

113

 

 

123

 

 

116

Depreciation, depletion and amortization

 

557

 

 

491

 

 

559

Total costs and expenses

 

1,926

 

 

1,849

 

 

2,350

Income before income taxes

 

1,415

 

 

604

 

 

685

Provision for income taxes

 

348

 

 

176

 

 

182

Net income

 

1,067

 

 

428

 

 

503

Less: Net income attributable to noncontrolling interests

 

95

 

 

82

 

 

90

Net income attributable to Hess Corporation

$

972

 

$

346

 

$

413

 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

 

 

March 31,

2024

 

December 31,

2023

Balance Sheet Information

 

 

 

Assets

 

 

 

Cash and cash equivalents

$

1,438

 

$

1,688

Other current assets

 

2,186

 

 

1,742

Property, plant and equipment – net

 

17,827

 

 

17,432

Operating lease right-of-use assets – net

 

658

 

 

720

Finance lease right-of-use assets – net

 

104

 

 

108

Other long-term assets

 

2,506

 

 

2,317

Total assets

$

24,719

 

$

24,007

Liabilities and equity

 

 

 

Current portion of long-term debt

$

314

 

$

311

Current portion of operating and finance lease obligations

 

365

 

 

370

Other current liabilities

 

2,272

 

 

2,589

Long-term debt

 

8,415

 

 

8,302

Long-term operating lease obligations

 

398

 

 

459

Long-term finance lease obligations

 

151

 

 

156

Other long-term liabilities

 

2,273

 

 

2,218

Total equity excluding accumulated other comprehensive income (loss)

 

10,002

 

 

9,120

Accumulated other comprehensive income (loss)

 

(134)

 

 

(134)

Noncontrolling interests

 

663

 

 

616

Total liabilities and equity

$

24,719

 

$

24,007

 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

 

 

March 31,

2024

 

December 31,

2023

Total Debt

 

 

 

Hess Corporation

$

5,404

 

$

5,402

Midstream (a)

 

3,325

 

 

3,211

Hess Consolidated

$

8,729

 

$

8,613

(a) Midstream debt is non-recourse to Hess Corporation.

 
 

March 31,

2024

 

December 31,

2023

Debt to Capitalization Ratio (a)

 

 

 

Hess Consolidated

45.8 %

 

47.8 %

Hess Corporation as defined in debt covenants

31.9 %

 

33.6 %

(a) Includes finance lease obligations.

 
 

Three Months Ended

March 31,

 

 

2024

 

 

2023

Interest Expense

 

 

 

Gross interest expense – Hess Corporation

$

87

 

$

86

Less: Capitalized interest – Hess Corporation

 

(23)

 

 

(5)

Interest expense – Hess Corporation

 

64

 

 

81

Interest expense – Midstream (a)

 

49

 

 

42

Interest expense – Hess Consolidated

$

113

 

$

123

(a) Midstream interest expense is reported in the Midstream operating segment.

 
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

 

 

First

Quarter

2024

 

First

Quarter

2023

 

Fourth

Quarter

2023

Cash Flow Information

 

 

 

 

 

 

 

 

 

 

 

Cash Flows from Operating Activities

 

 

 

 

 

Net income

$

1,067

 

$

428

 

$

503

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

 

 

 

 

 

Depreciation, depletion and amortization

 

557

 

 

491

 

 

559

Exploratory dry hole costs

 

 

 

31

 

 

50

Exploration lease impairment

 

3

 

 

5

 

 

3

Pension settlement loss

 

 

 

 

 

17

Stock compensation expense

 

39

 

 

35

 

 

18

Noncash (gains) losses on commodity derivatives, net

 

 

 

 

 

52

Provision (benefit) for deferred income taxes and other tax accruals

 

63

 

 

42

 

 

37

Net cash provided by (used in) operating activities before changes in operating assets and liabilities

 

1,729

 

 

1,032

 

 

1,239

Changes in operating assets and liabilities

 

(844)

 

 

(394)

 

 

105

Net cash provided by (used in) operating activities

 

885

 

 

638

 

 

1,344

Cash Flows from Investing Activities

 

 

 

 

 

Additions to property, plant and equipment - E&P

 

(902)

 

 

(773)

 

 

(1,380)

Additions to property, plant and equipment - Midstream

 

(55)

 

 

(64)

 

 

(64)

Other, net

 

(1)

 

 

(4)

 

 

(3)

Net cash provided by (used in) investing activities

 

(958)

 

 

(841)

 

 

(1,447)

Cash Flows from Financing Activities

 

 

 

 

 

Net borrowings (repayments) of debt with maturities of 90 days or less

 

115

 

 

103

 

 

64

Debt with maturities of greater than 90 days:

 

 

 

 

 

Borrowings

 

 

 

 

 

Repayments

 

(3)

 

 

 

 

(3)

Cash dividends paid

 

(137)

 

 

(137)

 

 

(134)

Common stock acquired and retired

 

 

 

(20)

 

 

Noncontrolling interests, net

 

(151)

 

 

(131)

 

 

(151)

Employee stock options exercised

 

11

 

 

3

 

 

Payments on finance lease obligations

 

(3)

 

 

(2)

 

 

(3)

Other, net

 

(9)

 

 

1

 

 

Net cash provided by (used in) financing activities

 

(177)

 

 

(183)

 

 

(227)

Net Increase (Decrease) in Cash and Cash Equivalents

 

(250)

 

 

(386)

 

 

(330)

Cash and Cash Equivalents at Beginning of Period

 

1,688

 

 

2,486

 

 

2,018

Cash and Cash Equivalents at End of Period

$

1,438

 

$

2,100

 

$

1,688

 

 

 

 

 

 

Additions to Property, Plant and Equipment included within Investing Activities

Capital expenditures incurred

$

(923)

 

$

(792)

 

$

(1,518)

Increase (decrease) in related liabilities

 

(34)

 

 

(45)

 

 

74

Additions to property, plant and equipment

$

(957)

 

$

(837)

 

$

(1,444)

 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

 

 

First

Quarter

2024

 

First

Quarter

2023

 

Fourth

Quarter

2023

Capital and Exploratory Expenditures

 

 

 

 

 

E&P Capital and exploratory expenditures

 

 

 

 

 

United States

 

 

 

 

 

North Dakota

$

288

 

$

232

 

$

313

Offshore and Other

 

159

 

 

29

 

 

64

Total United States

 

447

 

 

261

 

 

377

Guyana

 

447

 

 

454

 

 

1,047

Malaysia and JDA

 

28

 

 

47

 

 

55

Other

 

5

 

 

3

 

 

1

E&P Capital and exploratory expenditures

$

927

 

$

765

 

$

1,480

 

 

 

 

 

 

Total exploration expenses charged to income included above

$

39

 

$

30

 

$

34

 

 

 

 

 

 

Midstream Capital expenditures

$

35

 

$

57

 

$

72

 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)

(IN MILLIONS)

 

 

First Quarter 2024

Income Statement

United States

 

International

 

Total

Total revenues and non-operating income

 

 

 

 

 

Sales and other operating revenues

$

1,523

 

$

1,780

 

$

3,303

Other, net

 

10

 

 

1

 

 

11

Total revenues and non-operating income

 

1,533

 

 

1,781

 

 

3,314

Costs and expenses

 

 

 

 

 

Marketing, including purchased oil and gas (a)

 

589

 

 

51

 

 

640

Operating costs and expenses

 

205

 

 

133

 

 

338

Production and severance taxes

 

54

 

 

2

 

 

56

Midstream tariffs

 

328

 

 

 

 

328

Exploration expenses, including dry holes and lease impairment

 

34

 

 

8

 

 

42

General and administrative expenses

 

64

 

 

8

 

 

72

Depreciation, depletion and amortization

 

244

 

 

263

 

 

507

Total costs and expenses

 

1,518

 

 

465

 

 

1,983

Results of operations before income taxes

 

15

 

 

1,316

 

 

1,331

Provision for income taxes

 

 

 

334

 

 

334

Net income (loss) attributable to Hess Corporation

$

15

 

$

982

 

$

997

 

 

 

 

 

 

 

First Quarter 2023

Income Statement

United States

 

International

 

Total

Total revenues and non-operating income

 

 

 

 

 

Sales and other operating revenues

$

1,365

 

$

1,044

 

$

2,409

Other, net

 

9

 

 

5

 

 

14

Total revenues and non-operating income

 

1,374

 

 

1,049

 

 

2,423

Costs and expenses

 

 

 

 

 

Marketing, including purchased oil and gas (a)

 

584

 

 

35

 

 

619

Operating costs and expenses

 

205

 

 

118

 

 

323

Production and severance taxes

 

46

 

 

2

 

 

48

Midstream tariffs

 

283

 

 

 

 

283

Exploration expenses, including dry holes and lease impairment

 

20

 

 

46

 

 

66

General and administrative expenses

 

54

 

 

12

 

 

66

Depreciation, depletion and amortization

 

203

 

 

240

 

 

443

Total costs and expenses

 

1,395

 

 

453

 

 

1,848

Results of operations before income taxes

 

(21)

 

 

596

 

 

575

Provision for income taxes

 

 

 

170

 

 

170

Net income (loss) attributable to Hess Corporation

$

(21)

(b)

$

426

(c)

$

405

(a) Includes amounts charged from the Midstream segment.

(b) Includes after-tax losses from realized crude oil hedging activities of $27 million (noncash premium amortization: $27 million; cash settlement: $0 million).

(c) Includes after-tax losses from realized crude oil hedging activities of $7 million (noncash premium amortization: $7 million; cash settlement: $0 million).

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)

(IN MILLIONS)

 

 

Fourth Quarter 2023

Income Statement

United States

 

International

 

Total

Total revenues and non-operating income

 

 

 

 

 

Sales and other operating revenues

$

1,766

 

$

1,240

 

$

3,006

Other, net

 

11

 

 

5

 

 

16

Total revenues and non-operating income

 

1,777

 

 

1,245

 

 

3,022

Costs and expenses

 

 

 

 

 

Marketing, including purchased oil and gas (a)

 

867

 

 

40

 

 

907

Operating costs and expenses

 

229

 

 

159

 

 

388

Production and severance taxes

 

56

 

 

5

 

 

61

Midstream tariffs

 

328

 

 

 

 

328

Exploration expenses, including dry holes and lease impairment

 

82

 

 

5

 

 

87

General and administrative expenses

 

53

 

 

8

 

 

61

Depreciation, depletion and amortization

 

255

 

 

253

 

 

508

Total costs and expenses

 

1,870

 

 

470

 

 

2,340

Results of operations before income taxes

 

(93)

 

 

775

 

 

682

Provision for income taxes

 

 

 

170

 

 

170

Net income (loss) attributable to Hess Corporation

$

(93)

(b)

$

605

(c)

$

512

(a) Includes amounts charged from the Midstream segment.

(b) Includes after-tax losses from realized crude oil hedging activities of $34 million (noncash premium amortization: $34 million; cash settlement: $0 million).

(c) Includes after-tax losses from realized crude oil hedging activities of $18 million (noncash premium amortization: $18 million; cash settlement: $0 million).

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION OPERATING DATA

 

 

First

Quarter

2024

 

First

Quarter

2023

 

Fourth

Quarter

2023

Net Production Per Day (in thousands)

 

 

 

 

 

Crude oil - barrels

 

 

 

 

 

United States

 

 

 

 

 

North Dakota

88

 

76

 

89

Offshore

22

 

24

 

21

Total United States

110

 

100

 

110

Guyana (a)

190

 

112

 

128

Malaysia and JDA

5

 

4

 

6

Total

305

 

216

 

244

 

 

 

 

 

 

Natural gas liquids - barrels

 

 

 

 

 

United States

 

 

 

 

 

North Dakota

69

 

61

 

71

Offshore

2

 

1

 

2

Total United States

71

 

62

 

73

 

 

 

 

 

 

Natural gas - mcf

 

 

 

 

 

United States

 

 

 

 

 

North Dakota

200

 

158

 

204

Offshore

41

 

47

 

42

Total United States

241

 

205

 

246

Malaysia and JDA

358

 

369

 

362

Total

599

 

574

 

608

 

 

 

 

 

 

Barrels of oil equivalent

476

 

374

 

418

(a) Production from Guyana includes 33,000 bopd of tax barrels in the first quarter of 2024, 15,000 bopd of tax barrels in the first quarter of 2023 and 16,000 bopd of tax barrels in the fourth quarter of 2023.

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION OPERATING DATA

 

 

First

Quarter

2024

 

First

Quarter

2023

 

Fourth

Quarter

2023

Sales Volumes Per Day (in thousands) (a)

 

 

 

 

 

Crude oil – barrels

308

 

213

 

245

Natural gas liquids – barrels

73

 

64

 

74

Natural gas – mcf

599

 

574

 

608

Barrels of oil equivalent

481

 

373

 

420

 

 

 

 

 

 

Sales Volumes (in thousands) (a)

 

 

 

 

 

Crude oil – barrels

28,053

 

19,161

 

22,521

Natural gas liquids – barrels

6,650

 

5,761

 

6,839

Natural gas – mcf

54,495

 

51,692

 

55,957

Barrels of oil equivalent

43,786

 

33,537

 

38,686

(a) Sales volumes from purchased crude oil, natural gas liquids, and natural gas are not included in the sales volumes reported.

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION OPERATING DATA

 

 

First

Quarter

2024

 

First

Quarter

2023

 

Fourth

Quarter

2023

Average Selling Prices

 

 

 

 

 

 

 

 

 

 

 

Crude oil - per barrel (including hedging)

 

 

 

 

 

United States

 

 

 

 

 

North Dakota

$

71.75

 

$

68.63

 

$

70.69

Offshore

 

75.86

 

 

68.12

 

 

73.68

Total United States

 

72.58

 

 

68.50

 

 

71.28

Guyana

 

84.27

 

 

79.15

 

 

81.50

Malaysia and JDA

 

81.10

 

 

72.91

 

 

73.44

Worldwide

 

80.06

 

 

74.23

 

 

76.63

 

 

 

 

 

 

Crude oil - per barrel (excluding hedging)

 

 

 

 

 

United States

 

 

 

 

 

North Dakota

$

71.75

 

$

71.78

 

$

74.03

Offshore

 

75.86

 

 

71.27

 

 

76.98

Total United States

 

72.58

 

 

71.65

 

 

74.62

Guyana

 

84.27

 

 

79.86

 

 

83.09

Malaysia and JDA

 

81.10

 

 

72.91

 

 

73.44

Worldwide

 

80.06

 

 

76.02

 

 

78.95

 

 

 

 

 

 

Natural gas liquids - per barrel

 

 

 

 

 

United States

 

 

 

 

 

North Dakota

$

23.03

 

$

24.25

 

$

20.95

Offshore

 

21.36

 

 

24.28

 

 

19.26

Worldwide

 

22.97

 

 

24.25

 

 

20.92

 

 

 

 

 

 

Natural gas - per mcf

 

 

 

 

 

United States

 

 

 

 

 

North Dakota

$

1.80

 

$

2.54

 

$

1.52

Offshore

 

2.11

 

 

2.42

 

 

2.26

Total United States

 

1.85

 

 

2.51

 

 

1.65

Malaysia and JDA

 

6.49

 

 

5.44

 

 

6.45

Worldwide

 

4.62

 

 

4.39

 

 

4.51

 

For Hess Corporation

Investor Contact:

Jay Wilson

(212) 536-8940

Media Contacts:

Lorrie Hecker

(212) 536-8250

Liz James

FGS Global

(281) 881-5170

Source: Hess Corporation

FAQ

What was Hess 's net income in the first quarter of 2024?

Hess reported a net income of $972 million, or $3.16 per share, in the first quarter of 2024.

What new development did Hess sanction?

Hess sanctioned the development of Whiptail, expected to add approximately 250,000 barrels of oil per day by the end of 2027.

How did Exploration and Production (E&P) net income change in the first quarter of 2024 compared to 2023?

E&P net income increased to $997 million in the first quarter of 2024, compared to $405 million in the first quarter of 2023.

What was the increase in production for the Bakken and Guyana in the first quarter of 2024?

Bakken net production was up 17%, while Guyana saw a 70% increase in production in the first quarter of 2024.

What were the E&P capital expenditures in the first quarter of 2024?

E&P capital expenditures were $927 million in the first quarter of 2024.

How much cash and debt did Hess have at the end of the first quarter of 2024?

Hess had cash and cash equivalents of $1.4 billion and debt of $5.6 billion at the end of the first quarter of 2024.

Hess Corporation

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