Third Quarter Financial and Operational Highlights:
- In September, the Corporation announced a 14% increase in
its quarterly dividend, to $0.50 per share ($2.00 per share
annualized)
- Net income was $498 million, or $1.62 per share, in the
third quarter of 2024, compared with net income of $504 million, or
$1.64 per share, in the third quarter of 2023
- Adjusted net income1 was $660 million, or $2.14 per
share, in the third quarter of 2024, compared with net income of
$504 million, or $1.64 per share, in the third quarter of
2023
- E&P oil and gas net production was 461,000 barrels of
oil equivalent per day (boepd), up 17% from 395,000
boepd in the third quarter of 2023
- Bakken net production was 206,000 boepd, up 8% from 190,000
boepd in the third quarter of 2023
- Guyana net production was 170,000 barrels of oil per day
(bopd), up 57% from 108,000 bopd in the third quarter of
2023
- E&P capital and exploratory expenditures were $1,104
million, compared with $998 million in the prior-year
quarter
Updated 2024 Full Year Guidance:
- E&P capital and exploratory expenditures are expected to
be approximately $4.9 billion, up from previous guidance of $4.2
billion, reflecting the decision to accelerate the purchase of the
Liza Destiny and Prosperity floating production, storage and
offloading vessels (FPSOs) to the fourth quarter of 2024 instead of
in 2025
Hess Corporation (NYSE: HES) today reported net income of $498
million, or $1.62 per share, in the third quarter of 2024, compared
with net income of $504 million, or $1.64 per share, in the third
quarter of 2023. On an adjusted basis, the Corporation reported net
income of $660 million, or $2.14 per share, in the third quarter of
2024. The increase in adjusted after-tax earnings compared with the
prior-year quarter primarily reflects higher production volumes,
partially offset by lower realized selling prices in the third
quarter of 2024.
1.
“Adjusted net income” is a non-GAAP
financial measure. The reconciliation to its nearest GAAP
equivalent measure, and its definition, appear on pages 6 and 7,
respectively. As provided in the reconciliation, there were no
items identified as affecting comparability of earnings between
periods for the three months ended September 30, 2023, so net
income in accordance with GAAP is shown for that period.
After-tax income (loss) by major operating activity was as
follows:
Three Months Ended September 30,
(unaudited)
Nine Months Ended September 30,
(unaudited)
2024
2023
2024
2023
(In millions, except per share
amounts)
Net Income
Attributable to Hess Corporation
Exploration and Production
$
489
$
529
$
2,251
$
1,089
Midstream
69
66
202
189
Corporate, Interest and Other
(60
)
(91
)
(226
)
(309
)
Net income attributable to Hess
Corporation
$
498
$
504
$
2,227
$
969
Net income per share (diluted)
$
1.62
$
1.64
$
7.23
$
3.15
Adjusted Net Income
Attributable to Hess Corporation
Exploration and Production
$
651
$
529
$
2,465
$
1,171
Midstream
69
66
202
189
Corporate, Interest and Other
(60
)
(91
)
(226
)
(309
)
Adjusted net income attributable to Hess
Corporation
$
660
$
504
$
2,441
$
1,051
Adjusted net income per share
(diluted)
$
2.14
$
1.64
$
7.92
$
3.42
Weighted average number of shares
(diluted)
308.3
307.7
308.2
307.5
Exploration and Production:
E&P net income was $489
million in the third quarter of 2024, compared with $529 million in
the third quarter of 2023. On an adjusted basis, E&P third
quarter 2024 net income was $651 million. The Corporation’s average
realized crude oil selling price was $77.06 per barrel in the third
quarter of 2024, compared with $81.53 per barrel, including the
effect of hedging, in the prior-year quarter. The average realized
natural gas liquids (NGL) selling price in the third quarter of
2024 was $20.91 per barrel, compared with $20.17 per barrel in the
prior-year quarter, while the average realized natural gas selling
price was $3.81 per mcf, compared with $4.57 per mcf in the third
quarter of 2023.
Net production was 461,000 boepd
in the third quarter of 2024, compared with 395,000 boepd in the
third quarter of 2023, primarily due to higher production in
Guyana. In the fourth quarter of 2024, E&P net production is
expected to be in the range of 475,000 boepd to 485,000 boepd,
primarily reflecting recovery from downtime in the third quarter of
2024 at Guyana and Southeast Asia partially offset by planned
maintenance at the Tubular Bells production facility in the fourth
quarter of 2024.
Cash operating costs, which
include operating costs and expenses, production and severance
taxes, and E&P general and administrative expenses, were $13.84
per barrel of oil equivalent (boe) in the third quarter of 2024,
compared with $14.04 per boe in the prior-year quarter.
Operational Highlights for the Third Quarter of 2024:
Bakken (Onshore U.S.): Net
production from the Bakken was 206,000 boepd in the third quarter
of 2024, compared with 190,000 boepd in the prior-year quarter,
primarily reflecting increased drilling and completion activity.
NGL and natural gas volumes received under percentage of proceeds
contracts were 22,000 boepd in the third quarter of 2024, compared
with 19,000 boepd in the third quarter of 2023. During the third
quarter of 2024, the Corporation operated four rigs and drilled 32
wells, completed 36 wells, and brought 37 new wells online. The
Corporation plans to continue operating four drilling rigs in the
fourth quarter of 2024. Bakken net production is forecasted to be
in the range of 200,000 boepd to 205,000 boepd in the fourth
quarter of 2024, reflecting lower anticipated volumes received
under percentage of proceeds contracts.
Gulf of Mexico (Offshore
U.S.): Net production from the Gulf of Mexico in the third
quarter of 2024 was 38,000 boepd, compared with 28,000 boepd in the
prior-year quarter, primarily due to start-up of the Pickerel well
(Hess – 100%) that achieved first production in late June 2024 as a
tieback to the Tubular Bells production facility, partially offset
by hurricane-related downtime.
Guyana (Offshore): At the
Stabroek Block (Hess – 30%), net production totaled 170,000 bopd2
in the third quarter of 2024, compared with 108,000 bopd2 in the
prior-year quarter, primarily due to the start-up of the third
development on the block, Payara, which commenced production in
November 2023. Guyana net production is forecasted to be in the
range of 185,000 bopd2 to 190,000 bopd2 in the fourth quarter of
2024, reflecting recovery from planned downtime in the third
quarter. In the third quarter of 2024, 14 cargos of crude oil were
sold from Guyana, compared with nine cargos in the prior-year
quarter. In the fourth quarter of 2024, 15 cargos of crude oil are
expected to be sold.
The fourth development on the
block, Yellowtail, was sanctioned in April 2022 with a production
capacity of approximately 250,000 gross bopd and first production
expected in 2025. The fifth development, Uaru, was sanctioned in
April 2023 with a production capacity of approximately 250,000
gross bopd and first production expected in 2026. The sixth
development, Whiptail, was sanctioned in April 2024 and is expected
to add production capacity of approximately 250,000 gross bopd by
the end of 2027. The application for the environmental permit for
the seventh development, Hammerhead, has been filed with Guyana's
Environmental Protection Agency. Pending government and regulatory
approval and project sanctioning, the development is expected to
have a production capacity in the range of 120,000 to 180,000 gross
bopd, with first oil anticipated in 2029.
Southeast Asia (Offshore):
Net production at North Malay Basin and JDA was 47,000 boepd in the
third quarter of 2024, compared with 69,000 boepd in the prior-year
quarter, primarily due to planned and unplanned maintenance at JDA
and planned maintenance at North Malay Basin during the third
quarter of 2024.
Midstream:
The Midstream segment had net
income of $69 million in the third quarter of 2024, compared with
net income of $66 million in the prior-year quarter.
In September 2024, Hess Midstream
Operations LP (HESM Opco), a consolidated subsidiary of Hess
Midstream LP (HESM), repurchased approximately 2.8 million HESM
Opco Class B units held by Hess Corporation and Global
Infrastructure Partners for $100 million, of which the Corporation
received $38 million. The Corporation continues to own
approximately 37.8% of HESM on a consolidated basis.
Corporate, Interest and Other:
After-tax expense for Corporate,
Interest and Other was $60 million in the third quarter of 2024,
compared with $91 million in the third quarter of 2023, reflecting
higher capitalized interest.
Capital and Exploratory Expenditures:
E&P capital and exploratory
expenditures were $1,104 million in the third quarter of 2024,
compared with $998 million in the prior-year quarter, primarily due
to higher development activities in Guyana. Full year 2024 E&P
capital and exploratory expenditures are expected to be
approximately $4.9 billion, reflecting the decision to accelerate
the purchase of the Liza Destiny and Prosperity FPSOs to the fourth
quarter of 2024 instead of in 2025, for approximately $635
million.
Midstream capital expenditures
were $96 million in the third quarter of 2024 and $65 million in
the prior-year quarter.
Liquidity:
Excluding the Midstream segment,
Hess Corporation had cash and cash equivalents of $1.9 billion and
debt and finance lease obligations totaling $5.3 billion at
September 30, 2024. The Midstream segment had cash and cash
equivalents of $11 million and total debt of $3.5 billion at
September 30, 2024. The Corporation’s debt to capitalization ratio
as defined in its debt covenants was 28.9% at September 30, 2024
and 33.6% at December 31, 2023. In July 2024, the Corporation
repaid $300 million principal amount of senior unsecured notes. In
September 2024, the Corporation increased its quarterly dividend to
$0.50 per share, commencing in the third quarter.
Net cash provided by operating
activities was $1,510 million in the third quarter of 2024,
compared with $986 million in the third quarter of 2023. Net cash
provided by operating activities before changes in operating assets
and liabilities3 was $1,511 million in the third quarter of 2024,
compared with $1,249 million in the prior-year quarter, primarily
due to higher production volumes, partially offset by lower
realized selling prices in the third quarter of 2024. During the
third quarter of 2024 and the third quarter of 2023, changes in
operating assets and liabilities decreased cash flow from operating
activities by $1 million and $263 million, respectively.
Items Affecting Comparability of Earnings Between
Periods:
The following table reflects the
total after-tax income (expense) of items affecting comparability
of earnings between periods:
Three Months Ended September 30,
(unaudited)
Nine Months Ended September 30,
(unaudited)
2024
2023
2024
2023
(In millions)
Exploration and Production
$
(162
)
$
—
$
(214
)
$
(82
)
Midstream
—
—
—
—
Corporate, Interest and Other
—
—
—
—
Total items affecting comparability of
earnings between periods
$
(162
)
$
—
$
(214
)
$
(82
)
Third Quarter 2024: E&P
results include a noncash charge of $92 million ($92 million after
income taxes) to fully impair the net book value of the
Corporation's interests in the Conger asset due to a mechanical
issue on a producing well, and a charge of $40 million ($38 million
after income taxes) resulting from updates to the Corporation's
estimated abandonment liabilities for uneconomic properties
primarily in the Gulf of Mexico. E&P results also include a
noncash charge of $35 million ($32 million after income taxes)
recorded to Other, net in the income statement, resulting from
amendments to the Corporation's pension plan in the United Kingdom,
associated with the purchase of a bulk annuity policy as part of
the ongoing process to settle the plan's liabilities.
2.
Net production from Guyana included 25,000
bopd of tax barrels in the third quarter of 2024 and 14,000 bopd of
tax barrels in the third quarter of 2023. Net production guidance
for Guyana for the fourth quarter of 2024 includes tax barrels of
approximately 25,000 bopd.
3.
“Net cash provided by (used in) operating
activities before changes in operating assets and liabilities” is a
non-GAAP financial measure. The reconciliation to its nearest GAAP
equivalent measure, and its definition, appear on pages 6 and 7,
respectively.
Reconciliation of U.S. GAAP to Non-GAAP Measures:
The following table reconciles
reported net income attributable to Hess Corporation and adjusted
net income:
Three Months Ended September 30,
(unaudited)
Nine Months Ended September 30,
(unaudited)
2024
2023
2024
2023
(In millions)
Net income attributable to Hess
Corporation
$
498
$
504
$
2,227
$
969
Less: Total items affecting comparability
of earnings between periods
(162
)
—
(214
)
(82
)
Adjusted net income attributable to Hess
Corporation
$
660
$
504
$
2,441
$
1,051
The following table reconciles
reported net cash provided by (used in) operating activities from
net cash provided by (used in) operating activities before changes
in operating assets and liabilities:
Three Months Ended September 30,
(unaudited)
Nine Months Ended September 30,
(unaudited)
2024
2023
2024
2023
(In millions)
Net cash provided by (used in) operating
activities before changes in operating assets and liabilities
$
1,511
$
1,249
$
4,832
$
3,255
Changes in operating assets and
liabilities
(1
)
(263
)
(544
)
(657
)
Net cash provided by (used in) operating
activities
$
1,510
$
986
$
4,288
$
2,598
Due to the pending merger with
Chevron Corporation (Chevron), the Corporation will not host a
conference call to review its third quarter 2024 results.
Hess Corporation is a leading
global independent energy company engaged in the exploration and
production of crude oil and natural gas. More information on Hess
Corporation is available at www.hess.com.
Forward-looking Statements
This release contains “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
Words such as “anticipate,” “estimate,” “expect,” “forecast,”
“guidance,” “could,” “may,” “should,” “would,” “believe,” “intend,”
“project,” “plan,” “predict,” “will,” “target” and similar
expressions identify forward-looking statements, which are not
historical in nature. Our forward-looking statements may include,
without limitation: our future financial and operational results;
our business strategy; estimates of our crude oil and natural gas
reserves and levels of production; benchmark prices of crude oil,
NGL and natural gas and our associated realized price
differentials; our projected budget and capital and exploratory
expenditures; expected timing and completion of our development
projects; information about sustainability goals and targets and
planned social, safety and environmental policies, programs and
initiatives; future economic and market conditions in the oil and
gas industry; and expected timing and completion of our proposed
merger with Chevron.
Forward-looking statements are based on our current
understanding, assessments, estimates and projections of relevant
factors and reasonable assumptions about the future.
Forward-looking statements are subject to certain known and unknown
risks and uncertainties that could cause actual results to differ
materially from our historical experience and our current
projections or expectations of future results expressed or implied
by these forward-looking statements. The following important
factors could cause actual results to differ materially from those
in our forward-looking statements: fluctuations in market prices of
crude oil, NGL and natural gas and competition in the oil and gas
exploration and production industry; reduced demand for our
products, including due to perceptions regarding the oil and gas
industry, competing or alternative energy products and political
conditions and events; potential failures or delays in increasing
oil and gas reserves, including as a result of unsuccessful
exploration activity, drilling risks and unforeseen reservoir
conditions, and in achieving expected production levels; changes in
tax, property, contract and other laws, regulations and
governmental actions applicable to our business, including
legislative and regulatory initiatives regarding environmental
concerns, such as measures to limit greenhouse gas emissions and
flaring, fracking bans as well as restrictions on oil and gas
leases; operational changes and expenditures due to climate change
and sustainability related initiatives; disruption or interruption
of our operations due to catastrophic and other events, such as
accidents, severe weather, geological events, shortages of skilled
labor, cyber-attacks, public health measures, or climate change;
the ability of our contractual counterparties to satisfy their
obligations to us, including the operation of joint ventures under
which we may not control and exposure to decommissioning
liabilities for divested assets in the event the current or future
owners are unable to perform; unexpected changes in technical
requirements for constructing, modifying or operating exploration
and production facilities and/or the inability to timely obtain or
maintain necessary permits; availability and costs of employees and
other personnel, drilling rigs, equipment, supplies and other
required services; any limitations on our access to capital or
increase in our cost of capital, including as a result of
limitations on investment in oil and gas activities, rising
interest rates or negative outcomes within commodity and financial
markets; liability resulting from environmental obligations and
litigation, including heightened risks associated with being a
general partner of HESM; risks and uncertainties associated with
our proposed merger with Chevron; and other factors described in
Item 1A—Risk Factors in our Annual Report on Form 10-K and any
additional risks described in our other filings with the Securities
and Exchange Commission (SEC).
As and when made, we believe that our forward-looking statements
are reasonable. However, given these risks and uncertainties,
caution should be taken not to place undue reliance on any such
forward-looking statements since such statements speak only as of
the date when made and there can be no assurance that such
forward-looking statements will occur and actual results may differ
materially from those contained in any forward-looking statement we
make. Except as required by law, we undertake no obligation to
publicly update or revise any forward-looking statements, whether
because of new information, future events or otherwise.
Non-GAAP financial measures
The Corporation has used non-GAAP financial measures in this
earnings release. “Adjusted net income” presented in this release
is defined as reported net income attributable to Hess Corporation
excluding items identified as affecting comparability of earnings
between periods. “Net cash provided by (used in) operating
activities before changes in operating assets and liabilities”
presented in this release is defined as Net cash provided by (used
in) operating activities excluding changes in operating assets and
liabilities. Management uses adjusted net income to evaluate the
Corporation’s operating performance and believes that investors’
understanding of our performance is enhanced by disclosing this
measure, which excludes certain items that management believes are
not directly related to ongoing operations and are not indicative
of future business trends and operations. Management believes that
net cash provided by (used in) operating activities before changes
in operating assets and liabilities demonstrates the Corporation’s
ability to internally fund capital expenditures, pay dividends and
service debt. These measures are not, and should not be viewed as,
a substitute for U.S. GAAP net income or net cash provided by (used
in) operating activities. A reconciliation of reported net income
attributable to Hess Corporation (U.S. GAAP) to adjusted net
income, and a reconciliation of net cash provided by (used in)
operating activities (U.S. GAAP) to net cash provided by (used in)
operating activities before changes in operating assets and
liabilities are provided in the release.
Cautionary Note to Investors
We use certain terms in this release relating to resources other
than proved reserves, such as unproved reserves or resources.
Investors are urged to consider closely the oil and gas disclosures
in Hess Corporation’s Form 10-K, File No. 1-1204, available from
Hess Corporation, 1185 Avenue of the Americas, New York, New York
10036 c/o Corporate Secretary and on our website at www.hess.com. You can also obtain this form from
the SEC on the EDGAR system.
HESS CORPORATION AND
CONSOLIDATED SUBSIDIARIES SUPPLEMENTAL FINANCIAL DATA
(UNAUDITED) (IN MILLIONS)
Third Quarter 2024
Third Quarter 2023
Second Quarter 2024
Income
Statement
Revenues and non-operating
income
Sales and other operating revenues
$
3,191
$
2,800
$
3,202
Gains on asset sales, net
1
2
—
Other, net
5
35
53
Total revenues and non-operating
income
3,197
2,837
3,255
Costs and expenses
Marketing, including purchased oil and
gas
713
696
632
Operating costs and expenses
527
467
490
Production and severance taxes
61
61
64
Exploration expenses, including dry holes
and lease impairment
44
65
101
General and administrative expenses
118
115
115
Interest expense
100
117
106
Depreciation, depletion and
amortization
638
499
600
Impairment
132
—
—
Total costs and expenses
2,333
2,020
2,108
Income before income taxes
864
817
1,147
Provision for income taxes
270
215
296
Net income
594
602
851
Less: Net income attributable to
noncontrolling interests
96
98
94
Net income attributable to Hess
Corporation
$
498
$
504
$
757
HESS CORPORATION AND
CONSOLIDATED SUBSIDIARIES SUPPLEMENTAL FINANCIAL DATA
(UNAUDITED) (IN MILLIONS)
Nine Months Ended September
30,
Income
Statement
2024
2023
Revenues and non-operating
income
Sales and other operating revenues
$
9,702
$
7,500
Gains on asset sales, net
1
2
Other, net
90
108
Total revenues and non-operating
income
9,793
7,610
Costs and expenses
Marketing, including purchased oil and
gas
1,967
1,846
Operating costs and expenses
1,429
1,303
Production and severance taxes
181
155
Exploration expenses, including dry holes
and lease impairment
187
230
General and administrative expenses
357
359
Interest expense
319
362
Depreciation, depletion and
amortization
1,795
1,487
Impairment
132
82
Total costs and expenses
6,367
5,824
Income before income taxes
3,426
1,786
Provision for income taxes
914
551
Net income
2,512
1,235
Less: Net income attributable to
noncontrolling interests
285
266
Net income attributable to Hess
Corporation
$
2,227
$
969
HESS CORPORATION AND
CONSOLIDATED SUBSIDIARIES SUPPLEMENTAL FINANCIAL DATA
(UNAUDITED) (IN MILLIONS)
September 30, 2024
December 31, 2023
Balance Sheet
Information
Assets
Cash and cash equivalents
$
1,864
$
1,688
Other current assets
1,843
1,742
Property, plant and equipment – net
18,963
17,432
Operating lease right-of-use assets –
net
674
720
Finance lease right-of-use assets –
net
95
108
Other long-term assets
2,794
2,317
Total assets
$
26,233
$
24,007
Liabilities and equity
Current portion of long-term debt
$
20
$
311
Current portion of operating and finance
lease obligations
322
370
Other current liabilities
2,598
2,589
Long-term debt
8,576
8,302
Long-term operating lease obligations
454
459
Long-term finance lease obligations
138
156
Other long-term liabilities
2,523
2,218
Total equity excluding accumulated other
comprehensive income (loss)
11,010
9,120
Accumulated other comprehensive income
(loss)
(189
)
(134
)
Noncontrolling interests
781
616
Total liabilities and equity
$
26,233
$
24,007
HESS CORPORATION AND
CONSOLIDATED SUBSIDIARIES SUPPLEMENTAL FINANCIAL DATA
(UNAUDITED) (IN MILLIONS)
September 30, 2024
December 31, 2023
Total
Debt
Hess Corporation
$
5,106
$
5,402
Midstream (a)
3,490
3,211
Hess Consolidated
$
8,596
$
8,613
(a) Midstream debt is non-recourse to Hess
Corporation.
September 30, 2024
December 31, 2023
Debt to
Capitalization Ratio (a)
Hess Consolidated
43.0%
47.8%
Hess Corporation as defined in debt
covenants
28.9%
33.6%
(a) Includes finance lease
obligations.
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
Interest
Expense
Gross interest expense – Hess
Corporation
$
84
$
85
$
257
$
259
Less: Capitalized interest – Hess
Corporation
(37
)
(14
)
(90
)
(29
)
Interest expense – Hess Corporation
47
71
167
230
Interest expense – Midstream (a)
53
46
152
132
Interest expense – Hess
Consolidated
$
100
$
117
$
319
$
362
(a) Midstream interest expense is reported
in the Midstream operating segment.
HESS CORPORATION AND
CONSOLIDATED SUBSIDIARIES SUPPLEMENTAL FINANCIAL DATA
(UNAUDITED) (IN MILLIONS)
Third Quarter 2024
Third Quarter 2023
Second Quarter 2024
Cash Flow
Information
Cash Flows from Operating
Activities
Net income
$
594
$
602
$
851
Adjustments to reconcile net income to net
cash provided by (used in) operating activities:
(Gains) on asset sales, net
(1
)
(2
)
—
Depreciation, depletion and
amortization
638
499
600
Impairment
132
—
—
Exploratory dry hole costs
4
4
63
Exploration lease impairment
6
11
7
Pension prior service cost
35
—
—
Stock compensation expense
20
16
20
Noncash (gains) losses on commodity
derivatives, net
—
52
—
Provision (benefit) for deferred income
taxes and other tax accruals
83
67
51
Net cash provided by (used in) operating
activities before changes in operating assets and liabilities
1,511
1,249
1,592
Changes in operating assets and
liabilities
(1
)
(263
)
301
Net cash provided by (used in) operating
activities
1,510
986
1,893
Cash Flows from Investing
Activities
Additions to property, plant and equipment
- E&P
(990
)
(953
)
(1,087
)
Additions to property, plant and equipment
- Midstream
(92
)
(53
)
(64
)
Proceeds from asset sales, net of cash
sold
1
3
—
Other, net
(5
)
(1
)
(1
)
Net cash provided by (used in) investing
activities
(1,086
)
(1,004
)
(1,152
)
Cash Flows from Financing
Activities
Net borrowings (repayments) of debt with
maturities of 90 days or less
30
78
(455
)
Debt with maturities of greater than 90
days:
Borrowings
—
—
600
Repayments
(303
)
—
(2
)
Cash dividends paid
(154
)
(134
)
(134
)
Noncontrolling interests, net
(154
)
(136
)
(154
)
Employee stock options exercised
—
6
2
Payments on finance lease obligations
(3
)
(3
)
(2
)
Other, net
(1
)
(1
)
(9
)
Net cash provided by (used in) financing
activities
(585
)
(190
)
(154
)
Net Increase (Decrease) in Cash and
Cash Equivalents
(161
)
(208
)
587
Cash and Cash Equivalents at Beginning
of Period
2,025
2,226
1,438
Cash and Cash Equivalents at End of
Period
$
1,864
$
2,018
$
2,025
Additions to
Property, Plant and Equipment included within Investing
Activities
Capital expenditures incurred
$
(1,166
)
$
(1,013
)
$
(1,193
)
Increase (decrease) in related
liabilities
84
7
42
Additions to property, plant and
equipment
$
(1,082
)
$
(1,006
)
$
(1,151
)
HESS CORPORATION AND
CONSOLIDATED SUBSIDIARIES SUPPLEMENTAL FINANCIAL DATA
(UNAUDITED) (IN MILLIONS)
Nine Months Ended September
30,
2024
2023
Cash Flow
Information
Cash Flows from Operating
Activities
Net income
$
2,512
$
1,235
Adjustments to reconcile net income to net
cash provided by (used in) operating activities:
(Gains) on asset sales, net
(1
)
(2
)
Depreciation, depletion and
amortization
1,795
1,487
Impairment
132
82
Exploratory dry hole costs
67
97
Exploration lease impairment
16
24
Pension prior service cost
35
—
Stock compensation expense
79
69
Noncash (gains) losses on commodity
derivatives, net
—
104
Provision (benefit) for deferred income
taxes and other tax accruals
197
159
Net cash provided by (used in) operating
activities before changes in operating assets and liabilities
4,832
3,255
Changes in operating assets and
liabilities
(544
)
(657
)
Net cash provided by (used in) operating
activities
4,288
2,598
Cash Flows from Investing
Activities
Additions to property, plant and equipment
- E&P
(2,979
)
(2,504
)
Additions to property, plant and equipment
- Midstream
(211
)
(160
)
Proceeds from asset sales, net of cash
sold
1
3
Other, net
(7
)
(5
)
Net cash provided by (used in) investing
activities
(3,196
)
(2,666
)
Cash Flows from Financing
Activities
Net borrowings (repayments) of debt with
maturities of 90 days or less
(310
)
258
Debt with maturities of greater than 90
days:
Borrowings
600
—
Repayments
(308
)
—
Cash dividends paid
(425
)
(405
)
Common stock acquired and retired
—
(20
)
Proceeds from sale of Class A shares of
Hess Midstream LP
—
167
Noncontrolling interests, net
(459
)
(399
)
Employee stock options exercised
13
10
Payments on finance lease obligations
(8
)
(7
)
Other, net
(19
)
(4
)
Net cash provided by (used in) financing
activities
(916
)
(400
)
Net Increase (Decrease) in Cash and
Cash Equivalents
176
(468
)
Cash and Cash Equivalents at Beginning
of Period
1,688
2,486
Cash and Cash Equivalents at End of
Period
$
1,864
$
2,018
Additions to
Property, Plant and Equipment included within Investing
Activities
Capital expenditures incurred
$
(3,282
)
$
(2,761
)
Increase (decrease) in related
liabilities
92
97
Additions to property, plant and
equipment
$
(3,190
)
$
(2,664
)
HESS CORPORATION AND
CONSOLIDATED SUBSIDIARIES SUPPLEMENTAL FINANCIAL DATA
(UNAUDITED) (IN MILLIONS)
Third Quarter 2024
Third Quarter 2023
Second Quarter 2024
Capital and
Exploratory Expenditures
E&P Capital and exploratory
expenditures
United States
North Dakota
$
342
$
329
$
318
Offshore and Other
77
115
138
Total United States
419
444
456
Guyana
634
509
642
Malaysia and JDA
49
43
43
Other
2
2
10
E&P Capital and exploratory
expenditures
$
1,104
$
998
$
1,151
Total exploration expenses charged to
income included above
$
34
$
50
$
31
Midstream Capital expenditures
$
96
$
65
$
73
Nine Months Ended September
30,
2024
2023
Capital and
Exploratory Expenditures
E&P Capital and exploratory
expenditures
United States
North Dakota
$
948
$
825
Offshore and Other
374
226
Total United States
1,322
1,051
Guyana
1,723
1,471
Malaysia and JDA
120
134
Other (a)
17
40
E&P Capital and exploratory
expenditures
$
3,182
$
2,696
Total exploration expenses charged to
income included above
$
104
$
109
Midstream Capital expenditures
$
204
$
174
(a) Other in 2023 includes capital and
exploratory expenditures mainly associated with Canada.
HESS CORPORATION AND
CONSOLIDATED SUBSIDIARIES EXPLORATION AND PRODUCTION
EARNINGS (UNAUDITED) (IN MILLIONS)
Third Quarter 2024
Income
Statement
United States
International
Total
Total revenues and non-operating
income
Sales and other operating revenues
$
1,674
$
1,509
$
3,183
Gains on asset sales, net
1
—
1
Other, net
8
(25
)
(17
)
Total revenues and non-operating
income
1,683
1,484
3,167
Costs and expenses
Marketing, including purchased oil and gas
(a)
689
41
730
Operating costs and expenses
263
180
443
Production and severance taxes
55
6
61
Midstream tariffs
349
—
349
Exploration expenses, including dry holes
and lease impairment
36
8
44
General and administrative expenses
76
7
83
Depreciation, depletion and
amortization
323
262
585
Impairment
127
5
132
Total costs and expenses
1,918
509
2,427
Results of operations before income
taxes
(235
)
975
740
Provision for income taxes
—
251
251
Net income (loss) attributable to Hess
Corporation
$
(235
)
$
724
$
489
Third Quarter 2023
Income
Statement
United States
International
Total
Total revenues and non-operating
income
Sales and other operating revenues
$
1,651
$
1,147
$
2,798
Other, net
4
8
12
Total revenues and non-operating
income
1,655
1,155
2,810
Costs and expenses
Marketing, including purchased oil and gas
(a)
693
26
719
Operating costs and expenses
226
158
384
Production and severance taxes
59
2
61
Midstream tariffs
332
—
332
Exploration expenses, including dry holes
and lease impairment
45
20
65
General and administrative expenses
56
10
66
Depreciation, depletion and
amortization
234
217
451
Total costs and expenses
1,645
433
2,078
Results of operations before income
taxes
10
722
732
Provision for income taxes
—
203
203
Net income (loss) attributable to Hess
Corporation
$
10
(b)
$
519
(c)
$
529
(a) Includes amounts charged from the
Midstream segment. (b) Includes after-tax losses from realized
crude oil hedging activities of $33 million (noncash premium
amortization: $33 million; cash settlement: $0 million). (c)
Includes after-tax losses from realized crude oil hedging
activities of $19 million (noncash premium amortization: $19
million; cash settlement: $0 million).
HESS CORPORATION AND
CONSOLIDATED SUBSIDIARIES EXPLORATION AND PRODUCTION
EARNINGS (UNAUDITED) (IN MILLIONS)
Second Quarter 2024
Income
Statement
United States
International
Total
Total revenues and non-operating
income
Sales and other operating revenues
$
1,540
$
1,655
$
3,195
Other, net
12
19
31
Total revenues and non-operating
income
1,552
1,674
3,226
Costs and expenses
Marketing, including purchased oil and gas
(a)
617
34
651
Operating costs and expenses
229
177
406
Production and severance taxes
61
3
64
Midstream tariffs
335
—
335
Exploration expenses, including dry holes
and lease impairment
25
76
101
General and administrative expenses
65
9
74
Depreciation, depletion and
amortization
266
284
550
Total costs and expenses
1,598
583
2,181
Results of operations before income
taxes
(46
)
1,091
1,045
Provision for income taxes
—
280
280
Net income (loss) attributable to Hess
Corporation
$
(46
)
$
811
$
765
(a) Includes amounts charged from the
Midstream segment.
HESS CORPORATION AND
CONSOLIDATED SUBSIDIARIES EXPLORATION AND PRODUCTION
EARNINGS (UNAUDITED) (IN MILLIONS)
Nine Months Ended September 30,
2024
Income
Statement
United States
International
Total
Total revenues and non-operating
income
Sales and other operating revenues
$
4,737
$
4,944
$
9,681
Gains on asset sales, net
1
—
1
Other, net
30
(5
)
25
Total revenues and non-operating
income
4,768
4,939
9,707
Costs and expenses
Marketing, including purchased oil and gas
(a)
1,895
126
2,021
Operating costs and expenses
697
490
1,187
Production and severance taxes
170
11
181
Midstream tariffs
1,012
—
1,012
Exploration expenses, including dry holes
and lease impairment
95
92
187
General and administrative expenses
205
24
229
Depreciation, depletion and
amortization
833
809
1,642
Impairment
127
5
132
Total costs and expenses
5,034
1,557
6,591
Results of operations before income
taxes
(266
)
3,382
3,116
Provision for income taxes
—
865
865
Net income (loss) attributable to Hess
Corporation
$
(266
)
$
2,517
$
2,251
Nine Months Ended September 30,
2023
Income
Statement
United States
International
Total
Total revenues and non-operating
income
Sales and other operating revenues
$
4,315
$
3,179
$
7,494
Other, net
19
15
34
Total revenues and non-operating
income
4,334
3,194
7,528
Costs and expenses
Marketing, including purchased oil and gas
(a)
1,814
88
1,902
Operating costs and expenses
672
419
1,091
Production and severance taxes
150
5
155
Midstream tariffs
917
—
917
Exploration expenses, including dry holes
and lease impairment
88
142
230
General and administrative expenses
160
33
193
Depreciation, depletion and
amortization
649
695
1,344
Impairment
82
—
82
Total costs and expenses
4,532
1,382
5,914
Results of operations before income
taxes
(198
)
1,812
1,614
Provision for income taxes
—
525
525
Net income (loss) attributable to Hess
Corporation
$
(198
)
(b)
$
1,287
(c)
$
1,089
(a) Includes amounts charged from the
Midstream segment. (b) Includes after-tax losses from realized
crude oil hedging activities of $94 million (noncash premium
amortization: $94 million; cash settlement: $0 million). (c)
Includes after-tax losses from realized crude oil hedging
activities of $44 million (noncash premium amortization: $44
million; cash settlement: $0 million).
HESS CORPORATION AND
CONSOLIDATED SUBSIDIARIES EXPLORATION AND PRODUCTION
OPERATING DATA
Third Quarter 2024
Third Quarter 2023
Second Quarter 2024
Net Production
Per Day (in thousands)
Crude oil - barrels
United States
North Dakota
91
87
93
Offshore
28
21
18
Total United States
119
108
111
Guyana (a)
170
108
192
Malaysia and JDA
4
5
5
Total
293
221
308
Natural gas liquids - barrels
United States
North Dakota
75
70
76
Offshore
3
1
1
Total United States
78
71
77
Natural gas - mcf
United States
North Dakota
238
195
256
Offshore
42
37
28
Total United States
280
232
284
Malaysia and JDA
258
383
369
Total
538
615
653
Barrels of oil equivalent
461
395
494
(a) Production from Guyana includes 25,000
bopd of tax barrels in the third quarter of 2024, 14,000 bopd of
tax barrels in the third quarter of 2023 and 29,000 bopd of tax
barrels in the second quarter of 2024.
HESS CORPORATION AND
CONSOLIDATED SUBSIDIARIES EXPLORATION AND PRODUCTION
OPERATING DATA
Nine Months Ended September
30,
2024
2023
Net Production
Per Day (in thousands)
Crude oil - barrels
United States
North Dakota
91
81
Offshore
23
22
Total United States
114
103
Guyana (a)
183
110
Malaysia and JDA
5
4
Total
302
217
Natural gas liquids - barrels
United States
North Dakota
73
66
Offshore
3
2
Total United States
76
68
Natural gas - mcf
United States
North Dakota
232
187
Offshore
37
43
Total United States
269
230
Malaysia and JDA
327
370
Total
596
600
Barrels of oil equivalent
477
385
(a) Production from Guyana includes 29,000
bopd of tax barrels in the first nine months of 2024 and 14,000
bopd of tax barrels in the first nine months of 2023.
HESS CORPORATION AND
CONSOLIDATED SUBSIDIARIES EXPLORATION AND PRODUCTION
OPERATING DATA
Third Quarter 2024
Third Quarter 2023
Second Quarter 2024
Sales Volumes Per
Day (in thousands) (a)
Crude oil – barrels
295
223
293
Natural gas liquids – barrels
77
71
76
Natural gas – mcf
538
615
653
Barrels of oil equivalent
462
397
478
Sales Volumes (in
thousands) (a)
Crude oil – barrels
27,185
20,519
26,677
Natural gas liquids – barrels
7,113
6,500
6,925
Natural gas – mcf
49,492
56,553
59,402
Barrels of oil equivalent
42,547
36,445
43,502
Nine Months Ended September
30,
2024
2023
Sales Volumes Per
Day (in thousands) (a)
Crude oil – barrels
299
218
Natural gas liquids – barrels
76
67
Natural gas – mcf
596
600
Barrels of oil equivalent
474
385
Sales Volumes (in
thousands) (a)
Crude oil – barrels
81,915
59,420
Natural gas liquids – barrels
20,688
18,345
Natural gas – mcf
163,389
163,793
Barrels of oil equivalent
129,835
105,064
(a) Sales volumes from purchased crude
oil, natural gas liquids, and natural gas are not included in the
sales volumes reported.
HESS CORPORATION AND
CONSOLIDATED SUBSIDIARIES EXPLORATION AND PRODUCTION
OPERATING DATA
Third Quarter 2024
Third Quarter 2023
Second Quarter 2024
Average Selling
Prices
Crude oil - per barrel (including
hedging)
United States
North Dakota
$
72.74
$
76.06
$
75.84
Offshore
75.32
78.50
80.21
Total United States
73.35
76.56
76.54
Guyana
79.51
86.24
82.53
Malaysia and JDA
80.24
87.21
82.77
Worldwide
77.06
81.53
80.29
Crude oil - per barrel (excluding
hedging)
United States
North Dakota
$
72.74
$
79.43
$
75.84
Offshore
75.32
81.86
80.21
Total United States
73.35
79.92
76.54
Guyana
79.51
88.06
82.53
Malaysia and JDA
80.24
87.21
82.77
Worldwide
77.06
84.07
80.29
Natural gas liquids - per
barrel
United States
North Dakota
$
20.87
$
20.17
$
20.08
Offshore
21.67
20.15
19.60
Worldwide
20.91
20.17
20.07
Natural gas - per mcf
United States
North Dakota
$
0.97
$
1.56
$
0.81
Offshore
1.65
2.35
1.33
Total United States
1.07
1.69
0.86
Malaysia and JDA
6.78
6.32
6.81
Worldwide
3.81
4.57
4.22
HESS CORPORATION AND
CONSOLIDATED SUBSIDIARIES EXPLORATION AND PRODUCTION
OPERATING DATA
Nine Months Ended September
30,
2024
2023
Average Selling
Prices
Crude oil - per barrel (including
hedging)
United States
North Dakota
$
73.47
$
70.35
Offshore
76.77
71.55
Total United States
74.13
70.62
Guyana
82.18
80.41
Malaysia and JDA
81.35
76.84
Worldwide
79.14
75.72
Crude oil - per barrel (excluding
hedging)
United States
North Dakota
$
73.47
$
73.72
Offshore
76.77
74.89
Total United States
74.13
73.98
Guyana
82.18
81.86
Malaysia and JDA
81.35
76.84
Worldwide
79.14
78.04
Natural gas liquids - per
barrel
United States
North Dakota
$
21.30
$
20.70
Offshore
21.08
21.52
Worldwide
21.29
20.72
Natural gas - per mcf
United States
North Dakota
$
1.15
$
1.73
Offshore
1.74
2.12
Total United States
1.23
1.81
Malaysia and JDA
6.68
5.78
Worldwide
4.23
4.26
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241030493909/en/
For Hess Corporation Investor Contact: Jay Wilson
(212) 536-8940 Media Contacts: Lorrie Hecker (212) 536-8250
Liz James FGS Global (281) 881-5170
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