Hess Corporation HES reported fourth-quarter 2024 adjusted earnings per share (EPS) of $1.63, which beat the Zacks Consensus Estimate of $1.51. The bottom line was flat year over year.

Total quarterly revenues increased to $3,225 million from $3,035 million in the year-ago period. The top line also beat the Zacks Consensus Estimate of $3,032 million.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The better-than-expected quarterly earnings can be attributed to higher oil equivalent production volumes and decreased costs. This was partially offset by lower crude and natural gas price realization.

Hess Corporation Price, Consensus and EPS Surprise

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

Exploration & Production

The Exploration and Production business reported adjusted earnings of $529 million, down from $531 million a year ago. The business was affected by a decrease in realized crude and natural gas prices.

Quarterly hydrocarbon production totaled 495 thousand barrels of oil equivalent per day (MBoe/d), up from 418 MBoe/d in the year-ago period, primarily due to higher production in Guyana and Bakken. The reported figure also beat our estimate of 479.3 MBoe/d. 

Crude oil production increased from 244 thousand barrels per day (MBbls/d) in the fourth quarter of 2023 to 315 MBbls/d at the end of the reported quarter. The figure also beat our estimate of 303.6 MBbls/d.

NGL production totaled 79 MBbls/d, up from 73 MBbls/d in the prior-year quarter. The reported figure beat our estimate of 74.9 MBbls/d.

Natural gas production totaled 607 thousand cubic feet per day (Mcf/d), down from 608 Mcf/d a year ago. The reported figure was higher than our estimate of 604.7 Mcf/d.

Worldwide crude oil realization per barrel of $72.10 (excluding the impacts of hedging) decreased from $78.95 in the year-ago period. Also, the global natural gas price declined to $4.10 per Mcf from the year-ago figure of $4.51. The average global NGL selling price increased to $23.05 per barrel from $20.92 a year ago.

Mid-stream

The company generated adjusted net earnings of $74 million, up from $63 million a year ago.

Operating Expenses

Operating expenses for the fourth quarter totaled $532 million compared with the year-ago level of $473 million. The reported figure exceeded our projection of $474 million.

Exploration expenses increased to $139 million from $87 million recorded in the year-ago period. Marketing costs decreased to $653 million from $886 million a year ago.

Total costs and expenses decreased to $2,297 million from $2,350 million in the prior-year period.

Financials

Net cash provided by operating activities amounted to $1,312 million. Hess’ capital expenditure for exploration and production activities totaled $1,677 million.

As of Dec. 31, 2024, the company had $1,171 million in cash and cash equivalents. Its long-term debt was $8,555 million at the end of the fourth quarter.

Outlook

For the first quarter of 2025, Hess expects exploration and production net production of 465-475 thousand barrels of oil equivalent per day. The company forecasts a total exploration and production capital and exploratory expenditure of $4.5 billion for full-year 2025.

Zacks Rank & Stocks to Consider

Hess currently carries a Zacks Rank #3 (Hold).

Investors interested in the energy sector may look at some better-ranked stocks like SM Energy Company SM, Sunoco LP SUN and Range Resources Corporation RRC. While SM Energy and Sunoco presently sport a Zacks Rank #1 (Strong Buy) each, Range Resources carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments should create long-term value for shareholders.

Sunoco is a leading wholesale motor fuel distributor in the United States, boasting a vast distribution network spanning 40 states. With long-term contracts servicing more than 10,000 convenience stores, it distributes over 10 fuel brands, ensuring a stable revenue stream. Sunoco is poised to benefit from the strategic acquisitions aimed at diversifying its business portfolio.

Range Resources is among the top 10 natural gas producers in the United States. Its diversified portfolio is spread between low-risk and long reserve-life Appalachian assets. The company’s extensive inventory of Marcellus resources with low breakeven points is a significant asset. With expanded LPG export capacity, RRC is well-positioned to meet the rising global demand, capitalizing on the role of natural gas as a clean-burning fuel amid a low-carbon shift.

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