Hess Corporation Reports Third Quarter 2024 Financial Results
Hess Corporation (NYSE:HES) announced its financial results for the third quarter ending September 30, 2024.
Key Financial Metrics
| Financial Metric | Q3 2024 | Q3 2023 | Year-over-Year Change | Consensus Estimates |
|---|---|---|---|---|
| Net Income | $498M | $504M | -1.2% | N/A |
| Earnings Per Share (EPS) | $1.62 | $1.64 | -1.2% | $1.77 |
| Adjusted Net Income | $660M | $504M | +30.9% | N/A |
| Adjusted EPS | $2.14 | $1.64 | +30.5% | N/A |
The company experienced a slight decrease in net income year-over-year; however, adjusted net income saw a substantial increase, primarily driven by higher production volumes despite facing lower realized selling prices.
Revenue Performance by Segment
| Segment | Q3 2024 Revenue Performance |
|---|---|
| Exploration & Production | $489M net income, down from $529M in Q3 2023 |
| Midstream | $69M net income, up from $66M in Q3 2023 |
The Exploration & Production segment reported a slight decrease in net income due to reduced realized selling prices, partially offset by increased production volumes. Midstream's net income rose slightly, reflecting stable operational performance.
Key Developments and Operational Highlights
- Hess Corporation increased its quarterly dividend by 14% to $0.50 per share, equating to $2.00 per share on an annualized basis.
- E&P oil and gas net production increased by 17% to 461,000 boepd, driven by growth in Guyana and the Bakken region.
- The company accelerated capital projects, with expenditures expected to rise to approximately $4.9 billion for 2024.
Management Commentary
Hess Corporation's management underscored the enhanced adjusted earnings, attributing them to increased production, especially from Guyana, while managing cost efficiencies. They voiced confidence in continuing this momentum through strategic investments and capacity expansions.
Dividends and Share Repurchase Program
- A dividend increase to $0.50 per share was announced.
- Hess Midstream repurchased 2.8 million Class B units for $100 million; Hess Corporation received $38 million from this transaction.
Forward Guidance
Hess forecasts E&P net production in the range of 475,000 to 485,000 boepd for Q4 2024, marking a continued focus on increasing production capacity, especially in key growth areas such as Guyana.
Stock Price Movement
Following the earnings release, Hess Corporation's stock experienced a positive change, appreciating by approximately 3.83%.
Hess Corporation's third quarter results highlight effective management of production growth steered largely by investments in lucrative sectors like Guyana, even as it navigates the challenges posed by dips in commodity prices.
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