Hess Corporation HES reported third-quarter 2024 adjusted earnings per share (EPS) of $2.14, which beat the Zacks Consensus Estimate of $1.88. The bottom line improved from the year-ago level of $1.64.

Total quarterly revenues increased to $3,197 million from $2,837 million in the year-ago period. The top line also beat the Zacks Consensus Estimate of $3,084 million.

The strong quarterly results can be attributed to higher oil equivalent production volumes.

Hess Corporation Price, Consensus and EPS Surprise

Hess Corporation price-consensus-eps-surprise-chart | Hess Corporation Quote

Operational Update

Exploration & Production

The Exploration and Production business reported adjusted earnings of $651 million, up from $529 million a year ago. The business benefited from an increase in realized commodity prices.

Quarterly hydrocarbon production totaled 461 thousand barrels of oil equivalent per day (MBoe/d), up from 395 MBoe/d in the year-ago period, primarily due to higher production in Guyana and Bakken. The reported figure also beat our estimate of 460.2 MBoe/d.

Crude oil production increased from 221 thousand barrels per day (MBbls/d) in the third quarter of 2023 to 293 MBbls/d at the end of the reported quarter. The figure also beat our estimate of 287.8 MBbls/d.

NGL production totaled 78 MBbls/d, up from 71 MBbls/d in the prior-year quarter. The reported figure beat our estimate of 71.1 MBbls/d.

Natural gas production totaled 538 thousand cubic feet per day (Mcf/d), down from 615 Mcf/d a year ago. The reported figure also missed our estimate of 607.5 Mcf/d.

Worldwide crude oil realization per barrel of $77.06 (excluding the impacts of hedging) decreased from $84.07 in the year-ago period. Also, the global natural gas price declined to $3.81 per Mcf from the year-ago figure of $4.57. The average global NGL selling price increased to $20.91 per barrel from $20.17 a year ago.

Mid-stream

The company generated adjusted net earnings of $69 million, up from $66 million a year ago.

Operating Expenses

Operating expenses for the third quarter totaled $527 million compared with the year-ago level of $467 million. The reported figure exceeded our projection of $507.7 million.

Exploration expenses decreased to $44 million from $65 million recorded in the year-ago period. Marketing costs increased to $713 million from $696 million a year ago.

Total costs and expenses increased to $2,333 million from $2,020 million in the prior-year period.

Financials

Net cash provided by operating activities amounted to $1,510 million. Hess’ capital expenditure for exploration and production activities totaled $1,104 million.