Zinger Key Points
- Hess Q4 sales and EPS beat estimates, driven by strong Guyana and Bakken production growth.
- Company expects Q1 2025 production of 465,000-475,000 boepd, reflecting planned maintenance impacts.
Hess Corporation HES shares are rising premarket on Wednesday after the company reported fourth-quarter sales of $3.19 billion, beating the consensus of $2.87 billion.
Exploration and Production (E&P) net production rose to 495,000 boepd in the fourth quarter of 2024 from 418,000 boepd a year ago quarter, led by higher production in Guyana and the Bakken.
Notably, net production from Bakken rose 7% year-over-year (Y/Y) to 208,000 boepd and Guyana increased 52% Y/Y to 195,000 barrels of oil per day (bopd) in the quarter.
Cash operating costs (including operating costs and expenses, production and severance taxes, and E&P general and administrative expenses) stood at $12.95 per boe in the fourth quarter of 2024 vs. $13.29 per boe in the prior-year quarter.
Adj EPS of $1.76 exceeded the consensus of $1.48.
As of December 31, 2024, oil and gas proved reserves stood at 1.44 billion boe, and net proved reserve additions and revisions in 2024 totaled 247 million boe, primarily from Guyana and the Bakken.
The company replaced 138% of its 2024 production at a finding and development cost of $19.67 per boe.
E&P capital and exploratory expenditures came in at $1.677 billion in the quarter, including the purchases of the Liza Destiny and Prosperity FPSOs for about $635 million.
As of December 31, 2024, excluding the Midstream segment, Hess had cash and cash equivalents of $1.2 billion and debt and finance lease obligations of $5.3 billion.
Outlook: In the first quarter of 2025, the company expects E&P net production of 465,000 boepd-475,000 boepd.
The guidance reflects planned maintenance, reduced tax barrels in Guyana, and the effects of winter weather in the Bakken.
The company expects E&P capital and exploratory expenditures of around $4.5 billion in 2025, which includes capitalized interest of about $240 million.
Investors can gain exposure to the stock via Invesco S&P 500 Equal Weight Energy ETF RSPG and iShares U.S. Oil & Gas Exploration & Production ETF IEO.
Price Action: HES shares are up 1.34% at $146.99 premarket at the last check Wednesday.
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