Hess Corporation reported estimated results for the first quarter of 2024, showing significant growth in both financial and operational metrics compared to the same period in 2023.
The company's net income in Q1 2024 was $972 million, or $3.16 per share, a substantial increase from the net income of $346 million, or $1.13 per share, in Q1 2023. This surge in after-tax earnings primarily reflects higher production volumes in the first quarter of 2024.
The oil and gas net production also saw a notable uptick, reaching 476,000 barrels of oil equivalent per day (boepd), up 27% from 374,000 boepd in the first quarter of 2023. Specifically, the Bakken net production increased by 17% to 190,000 boepd, while Guyana net production soared by 70% to 190,000 barrels of oil per day from 112,000 bopd in the prior-year quarter.
Exploration and production (E&P) net income experienced a significant surge, reaching $997 million in the first quarter of 2024, compared with $405 million in the first quarter of 2023. The average realized crude oil selling price also saw an increase, reaching $80.06 per barrel in Q1 2024 compared to $74.23 per barrel in Q1 2023.
Moreover, the E&P capital and exploratory expenditures totaled $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.
In terms of operational highlights, the net production from the Bakken reached 190,000 boepd in Q1 2024, marking a 17% increase from the prior-year quarter. Meanwhile, the net production from the Gulf of Mexico was 31,000 boepd, slightly down from 33,000 boepd in the prior-year quarter.
In Guyana, at the Stabroek Block, net production totaled 190,000 bopd in Q1 2024, compared with 112,000 bopd in the prior-year quarter. The third development on the block, Payara, reached its initial production capacity of approximately 220,000 gross bopd in January 2024. Additionally, the fourth, fifth, and sixth developments * Yellowtail, Uaru, and Whiptail * are expected to add significant production capacity by 2027.
As a result of these announcements, the company's shares have moved -0.2% on the market, and are now trading at a price of $158.83. For the full picture, make sure to review Hess's 8-K report.
