Hess Reports Strong Q4 Results, Driven by Guyana and Bakken Success
Generated by AI AgentWesley Park
Wednesday, Jan 29, 2025 7:47 am ET1min read
HES--
Hess Corporation (NYSE: HES) reported strong fourth quarter 2024 results, driven by significant production growth in Guyana and the Bakken region. The company's net income surged 31% year-over-year to $542 million, with net income per share increasing to $1.76. Earnings per share (EPS) beat analysts' estimates of $1.47.
Hess' net production increased by 18% to 495,000 barrels of oil equivalent per day (boepd), primarily due to higher production in Guyana and the Bakken. In Guyana, net production jumped by 52% to 195,000 barrels of oil per day (bopd), following the successful startup of the Payara development in November 2023. The Bakken region saw a 7% increase in net production to 208,000 boepd, reflecting increased drilling and completion activity.
The company's E&P capital and exploratory expenditures totaled $1,677 million in the fourth quarter of 2024, including the purchases of the Liza Destiny and Prosperity floating production, storage, and offloading vessels (FPSOs) for approximately $635 million. Year-end proved reserves reached 1.44 billion barrels of oil equivalent (boe), with an organic reserve replacement rate of 138% at a finding and development cost of $19.67 per boe.
Hess' strong performance in Guyana and the Bakken has positioned the company well for sustained long-term production growth. The company's world-class Guyana assets continue to expand, with three more developments (Yellowtail, Uaru, and Whiptail) in the pipeline, potentially adding 750,000 gross bopd of production capacity by 2027. The Hammerhead development could further boost capacity by 120,000-180,000 gross bopd by 2029.
Hess' financial health remains robust, with $1.2 billion in cash (excluding Midstream) and a conservative debt-to-capitalization ratio of 28.3%, down from 33.6% year-over-year. Operating cash flow generation remained strong at $1.52 billion before working capital changes, showing 23% year-over-year growth despite lower realized oil prices.
In conclusion, Hess' exceptional operational and financial performance in the fourth quarter of 2024, driven by significant production growth in Guyana and the Bakken, demonstrates the company's strong fundamental growth. With a robust financial position and a pipeline of promising developments, Hess is well-positioned to continue delivering strong results in the coming years.
Hess Corporation (NYSE: HES) reported strong fourth quarter 2024 results, driven by significant production growth in Guyana and the Bakken region. The company's net income surged 31% year-over-year to $542 million, with net income per share increasing to $1.76. Earnings per share (EPS) beat analysts' estimates of $1.47.
Hess' net production increased by 18% to 495,000 barrels of oil equivalent per day (boepd), primarily due to higher production in Guyana and the Bakken. In Guyana, net production jumped by 52% to 195,000 barrels of oil per day (bopd), following the successful startup of the Payara development in November 2023. The Bakken region saw a 7% increase in net production to 208,000 boepd, reflecting increased drilling and completion activity.
The company's E&P capital and exploratory expenditures totaled $1,677 million in the fourth quarter of 2024, including the purchases of the Liza Destiny and Prosperity floating production, storage, and offloading vessels (FPSOs) for approximately $635 million. Year-end proved reserves reached 1.44 billion barrels of oil equivalent (boe), with an organic reserve replacement rate of 138% at a finding and development cost of $19.67 per boe.
Hess' strong performance in Guyana and the Bakken has positioned the company well for sustained long-term production growth. The company's world-class Guyana assets continue to expand, with three more developments (Yellowtail, Uaru, and Whiptail) in the pipeline, potentially adding 750,000 gross bopd of production capacity by 2027. The Hammerhead development could further boost capacity by 120,000-180,000 gross bopd by 2029.
Hess' financial health remains robust, with $1.2 billion in cash (excluding Midstream) and a conservative debt-to-capitalization ratio of 28.3%, down from 33.6% year-over-year. Operating cash flow generation remained strong at $1.52 billion before working capital changes, showing 23% year-over-year growth despite lower realized oil prices.
In conclusion, Hess' exceptional operational and financial performance in the fourth quarter of 2024, driven by significant production growth in Guyana and the Bakken, demonstrates the company's strong fundamental growth. With a robust financial position and a pipeline of promising developments, Hess is well-positioned to continue delivering strong results in the coming years.
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