Hess Reports Significant Growth in Q2 2024

By Bobby Samwell • Wednesday, July 31 08:08 • Permanent Link

Hess Corporation has reported its estimated results for the second quarter of 2024, and the figures show significant growth compared to the same period in 2023.

Net income for the second quarter of 2024 was $757 million, or $2.46 per share, a substantial increase from the net income of $119 million, or $0.39 per share, in the second quarter of 2023. Adjusted net income for the same period was reported as $809 million, or $2.62 per share, compared with $201 million, or $0.65 per share, in the second quarter of 2023.

The company's oil and gas net production also saw a significant uptick, reaching 494,000 barrels of oil equivalent per day (boepd), up 28% from 387,000 boepd in the second quarter of 2023. Specifically, the Bakken net production increased by 17% to 212,000 boepd, while Guyana net production surged by 75% to 192,000 barrels of oil per day (bopd) from 110,000 bopd in the prior-year quarter.

Furthermore, the exploration and production (E&P) capital and exploratory expenditures rose to $1,151 million from $933 million in the prior-year quarter.

The company's financial performance was also reflected in its operational highlights, with notable increases in production volumes and realized selling prices. For instance, the average realized crude oil selling price was $80.29 per barrel in the second quarter of 2024, compared with $71.13 per barrel in the prior-year quarter.

The company's liquidity position was robust, with cash and cash equivalents of $1.9 billion and a debt and finance lease obligations totaling $5.6 billion at the end of June 30, 2024. Additionally, net cash provided by operating activities was $1,893 million in the second quarter of 2024, compared with $974 million in the second quarter of 2023.

Looking ahead, the company has provided operational forecasts for the third quarter of 2024, with E&P net production expected to be in the range of 460,000 boepd to 470,000 boepd.

The significant growth in net income, production volumes, and operational highlights demonstrates a strong performance for Hess Corporation in the second quarter of 2024, setting a positive trajectory for the company's future. Today the company's shares have moved 2.0% to a price of $151.69. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.