Hess Reports Estimated Results for the Second Quarter of 2024

Rhea-AI Summary

Hess (NYSE: HES) reported strong financial results for Q2 2024. Net income rose to $757 million ($2.46 per share), up from $119 million ($0.39 per share) in Q2 2023. Adjusted net income reached $809 million ($2.62 per share), compared to $201 million ($0.65 per share) last year. The company saw significant production growth, with total net production increasing 28% to 494,000 boepd. Notably, Guyana production surged 75% to 192,000 bopd. Bakken production also improved by 17% to 212,000 boepd. The company's average realized crude oil price increased to $80.29 per barrel, up from $71.13 in Q2 2023. Hess maintains a strong liquidity position with $1.9 billion in cash and cash equivalents. The company's success in Guyana continues, with multiple development projects progressing as planned.

Positive

• Net income increased significantly to $757 million ($2.46 per share) from $119 million ($0.39 per share) year-over-year
• Total net production grew 28% to 494,000 boepd
• Guyana production surged 75% to 192,000 bopd
• Bakken production improved by 17% to 212,000 boepd
• Average realized crude oil price increased to $80.29 per barrel from $71.13 in Q2 2023
• Strong liquidity position with $1.9 billion in cash and cash equivalents
• Multiple development projects in Guyana progressing as planned

Negative

• E&P capital and exploratory expenditures increased to $1,151 million from $933 million in the prior-year quarter
• Gulf of Mexico production decreased to 24,000 boepd from 32,000 boepd in the prior-year quarter
• Debt and finance lease obligations totaled $5.6 billion at June 30, 2024

Insights

Financial Analyst

Hess 's Q2 2024 results demonstrate significant growth and improved financial performance. Net income surged to $757 million ($2.46 per share), a substantial increase from $119 million ($0.39 per share) in Q2 2023. This impressive growth is primarily attributed to higher production volumes and improved realized selling prices.

Key highlights include:

• Adjusted net income of $809 million ($2.62 per share), up from $201 million ($0.65 per share) in Q2 2023
• Oil and gas net production increased by 28% to 494,000 boepd
• Bakken net production rose 17% to 212,000 boepd
• Guyana net production jumped 75% to 192,000 bopd

The company's focus on key assets, particularly in Guyana and the Bakken, is paying off. The Guyana operations, with multiple developments underway, show strong potential for continued growth. The increase in E&P capital expenditures to $1,151 million indicates ongoing investment in future production capacity.

Hess's financial position remains solid, with $1.9 billion in cash and cash equivalents (excluding Midstream segment) and a debt to capitalization ratio of 30.8%. The company's ability to generate strong cash flows, with $1,893 million in net cash provided by operating activities, supports its growth strategy and financial flexibility.

However, investors should note the planned downtime in Guyana and Southeast Asia, which may impact Q3 2024 production. Additionally, the write-off of previously capitalized exploration wells in the JDA area is a reminder of the inherent risks in the oil and gas exploration business.

Overall, Hess's Q2 results paint a picture of a company executing well on its strategy, with strong production growth and improved financial performance setting the stage for continued success.

Oil and Gas Industry Expert

Hess 's Q2 2024 results underscore its position as a key player in the global oil and gas industry, with significant operations in strategic areas. The company's performance reflects broader industry trends of recovery and growth post-pandemic.

The standout feature is Hess's Guyana operations. The 75% year-over-year increase in Guyana production to 192,000 bopd is remarkable. This growth is driven by the success of the Stabroek Block, where multiple developments are in progress. The Payara development reaching its initial production capacity of 220,000 gross bopd in January 2024 is a significant milestone. With six sanctioned developments and a seventh (Hammerhead) in the pipeline, Guyana represents a long-term growth engine for Hess.

In the Bakken, Hess's increased drilling and completion activity has yielded results, with production up 17% year-over-year. The company's plan to continue operating four drilling rigs in 2024 indicates confidence in the play's ongoing potential.

The Gulf of Mexico operations, while showing lower production due to planned maintenance, demonstrate Hess's diversified portfolio. The Pickerel-1 oil discovery coming online and the ongoing Vancouver prospect exploration highlight the company's continued focus on this region.

Hess's ability to reduce cash operating costs to $11.69 per boe (down from $13.97 in Q2 2023) showcases operational efficiency improvements, important in a volatile commodity price environment.

The pending merger with Chevron could significantly alter Hess's future trajectory, potentially providing additional resources and synergies to accelerate development in key areas like Guyana. However, this also introduces some uncertainty about the company's long-term independent strategy.

In conclusion, Hess's Q2 results demonstrate strong operational performance and strategic positioning in high-potential areas, particularly Guyana, setting the stage for continued growth in the evolving global energy landscape.

Second Quarter Financial and Operational Highlights:

• Net income was $757 million, or $2.46 per share, compared with net income of $119 million, or $0.39 per share, in the second quarter of 2023
• Adjusted net income¹ was $809 million, or $2.62 per share, compared with $201 million, or $0.65 per share, in the second quarter of 2023
• Oil and gas net production was 494,000 barrels of oil equivalent per day (boepd), up 28% from 387,000 boepd in the second quarter of 2023
• Bakken net production was 212,000 boepd, up 17% from 181,000 boepd in the second quarter of 2023; Guyana net production was 192,000 barrels of oil per day (bopd), up 75% from 110,000 bopd in the prior-year quarter
• E&P capital and exploratory expenditures were $1,151 million, compared with $933 million in the prior-year quarter

NEW YORK--(BUSINESS WIRE)-- Hess Corporation (NYSE: HES) today reported net income of $757 million, or $2.46 per share, in the second quarter of 2024, compared with net income of $119 million, or $0.39 per share, in the second quarter of 2023. On an adjusted basis, the Corporation reported net income of $809 million, or $2.62 per share in the second quarter of 2024, compared with $201 million or $0.65 per share, in the prior-year quarter. The increase in adjusted after-tax earnings compared with the prior-year quarter primarily reflects higher production volumes and realized selling prices in the second 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.

   After-tax income (loss) by major operating activity was as follows:

	Three Months Ended June 30, (unaudited)						Six Months Ended June 30, (unaudited)
	2024			2023			2024			2023
	(In millions, except per share amounts)
Net Income Attributable to Hess Corporation
Exploration and Production	$	765		$	155		$	1,762		$	560
Midstream		66			62			133			123
Corporate, Interest and Other		(74)			(98)			(166)			(218)
Net income attributable to Hess Corporation	$	757		$	119		$	1,729		$	465
Net income per share (diluted)	$	2.46		$	0.39		$	5.61		$	1.51
Adjusted Net Income Attributable to Hess Corporation
Exploration and Production	$	817		$	237		$	1,814		$	642
Midstream		66			62			133			123
Corporate, Interest and Other		(74)			(98)			(166)			(218)
Adjusted net income attributable to Hess Corporation	$	809		$	201		$	1,781		$	547
Adjusted net income per share (diluted)	$	2.62		$	0.65		$	5.78		$	1.78
Weighted average number of shares (diluted)		308.3			307.5			308.1			307.4

Exploration and Production:

   E&P net income was $765 million in the second quarter of 2024, compared with $155 million in the second quarter of 2023. On an adjusted basis, E&P second quarter 2024 net income was $817 million, compared with $237 million in the prior-year quarter. The Corporation’s average realized crude oil selling price was $80.29 per barrel in the second quarter of 2024, compared with $71.13 per barrel, including the effect of hedging, in the prior-year quarter. The average realized natural gas liquids (NGL) selling price in the second quarter of 2024 was $20.07 per barrel, compared with $17.95 per barrel in the prior-year quarter, while the average realized natural gas selling price was $4.22 per mcf, compared with $3.82 per mcf in the second quarter of 2023.

   Net production was 494,000 boepd in the second quarter of 2024, compared with 387,000 boepd in the second quarter of 2023, primarily due to higher production in Guyana and the Bakken. In the third quarter of 2024, E&P net production is expected to be in the range of 460,000 boepd to 470,000 boepd, primarily reflecting planned downtime in Guyana and Southeast Asia.

   Cash operating costs, which include operating costs and expenses, production and severance taxes, and E&P general and administrative expenses, were $11.69 per barrel of oil equivalent (boe) in the second quarter of 2024, compared with $13.97 per boe in the prior-year quarter, primarily due to higher production volumes.

Operational Highlights for the Second Quarter of 2024:

   Bakken (Onshore U.S.): Net production from the Bakken was 212,000 boepd in the second quarter of 2024, compared with 181,000 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 26,000 boepd in the second quarter of 2024, compared with 22,000 boepd in the second quarter of 2023. During the second quarter of 2024, the Corporation operated four rigs and drilled 38 wells, completed 37 wells, and brought 31 new wells online. The Corporation plans to continue operating four drilling rigs in 2024. Bakken net production is forecasted to be in the range of 200,000 boepd to 205,000 boepd in the third quarter of 2024, reflecting lower anticipated volumes received under percentage of proceeds contracts and planned maintenance at our gas infrastructure.

   Gulf of Mexico (Offshore U.S.): Net production from the Gulf of Mexico in the second quarter of 2024 was 24,000 boepd, compared with 32,000 boepd in the prior-year quarter, reflecting planned maintenance at the Conger and Tubular Bells fields. The Pickerel-1 oil discovery (Hess – 100%) located in Mississippi Canyon Block 727 achieved first production in late June as a tieback to the Tubular Bells production facilities. In June, the Corporation spud an exploration well at the Vancouver prospect (Hess – 40%) located in Green Canyon Block 287. The exploration well results are anticipated in the third quarter.

   Guyana (Offshore): At the Stabroek Block (Hess – 30%), net production totaled 192,000² bopd in the second quarter of 2024, compared with 110,000² bopd in the prior-year quarter. The third development on the block, Payara, which commenced production in November 2023, reached its initial production capacity of approximately 220,000 gross bopd in January 2024. Guyana net production is forecasted to be in the range of 170,000 bopd² to 175,000 bopd² in the third quarter reflecting downtime associated with the Liza Destiny and the Liza Unity floating production, storage and offloading vessels related to pipeline and field hook-up for the Gas to Energy project, and production optimization work at the Liza Unity. In the second quarter of 2024, 14 cargos of crude oil were sold from Guyana, compared with nine cargos in the prior-year quarter. In the third quarter of 2024, 14 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 gross bopd to 180,000 gross bopd with first oil anticipated in 2029.

   Southeast Asia (Offshore): Net production at North Malay Basin and JDA was 66,000 boepd in the second quarter of 2024, compared with 64,000 boepd in the prior-year quarter.

Midstream:

   The Midstream segment had net income of $66 million in the second quarter of 2024, compared with net income of $62 million in the prior-year quarter.

   In June 2024, Hess Midstream Operations LP (HESM Opco), a consolidated subsidiary of Hess Midstream LP (HESM), repurchased approximately 2.7 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 $74 million in the second quarter of 2024, compared with $98 million in the second quarter of 2023, reflecting higher capitalized interest.

Capital and Exploratory Expenditures:

   E&P capital and exploratory expenditures were $1,151 million in the second quarter of 2024, compared with $933 million in the prior-year quarter, primarily due to higher development activities in Guyana, and higher drilling activity in the Gulf of Mexico and the Bakken. Third quarter 2024 E&P capital and exploratory expenditures are expected to be approximately $1,125 million.

   Midstream capital expenditures were $73 million in the second quarter of 2024 and $52 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 $5.6 billion at June 30, 2024. The Corporation’s debt to capitalization ratio as defined in its debt covenants was 30.8% at June 30, 2024 and 33.6% at December 31, 2023. In July 2024, the Corporation repaid $300 million principal amount of senior unsecured notes, which are classified as current portion of long-term debt, in the consolidated balance sheet at June 30, 2024.

   The Midstream segment had cash and cash equivalents of $100 million and total debt of $3.5 billion at June 30, 2024. In May 2024, HESM Opco issued $600 million of 6.500% fixed-rate senior unsecured notes due 2029. Net proceeds from the borrowings were primarily used to reduce debt outstanding under HESM Opco’s revolving credit facility.

   Net cash provided by operating activities was $1,893 million in the second quarter of 2024, compared with $974 million in the second quarter of 2023. Net cash provided by operating activities before changes in operating assets and liabilities³ was $1,592 million in the second quarter of 2024, compared with $974 million in the prior-year quarter, primarily due to higher production volumes and realized selling prices in the second quarter of 2024. Changes in operating assets and liabilities increased cash flow from operating activities by $301 million in the second quarter of 2024.

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 June 30, (unaudited)						Six Months Ended June 30, (unaudited)
	2024			2023			2024			2023
	(In millions)
Exploration and Production	$	(52)		$	(82)		$	(52)		$	(82)
Midstream		—			—			—			—
Corporate, Interest and Other		—			—			—			—
Total items affecting comparability of earnings between periods	$	(52)		$	(82)		$	(52)		$	(82)

   Second Quarter 2024: E&P results include a charge of $48 million ($38 million after income taxes) to write-off previously capitalized exploration wells, and a charge of $18 million ($14 million after income taxes) related to materials and supplies inventory recorded to operating costs and expenses, both in the JDA, based on the regulator's notification that the existing production sharing contract (PSC) for Block A-18 will not be re-awarded to the existing PSC contractors upon its expiration in 2029.

   Second Quarter 2023: E&P results included a charge of $82 million ($82 million after income taxes) that resulted from updates to the Corporation’s estimated abandonment obligations in the West Delta Field in the Gulf of Mexico. These abandonment obligations were assigned to the Corporation as a former owner after they were discharged from Fieldwood Energy LLC as part of its approved bankruptcy plan in 2021.

   2. Net production from Guyana included 29,000 bopd of tax barrels in the second quarter of 2024 and 13,000 bopd of tax barrels in the second quarter of 2023. Net production guidance for Guyana for the third quarter of 2024 includes tax barrels in the range of 25,000 bopd to 30,000 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 June 30, (unaudited)						Six Months Ended June 30, (unaudited)
	2024			2023			2024			2023
	(In millions)
Net income attributable to Hess Corporation	$	757		$	119		$	1,729		$	465
Less: Total items affecting comparability of earnings between periods		(52)			(82)			(52)			(82)
Adjusted net income attributable to Hess Corporation	$	809		$	201		$	1,781		$	547

   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 June 30, (unaudited)						Six Months Ended June 30, (unaudited)
	2024			2023			2024			2023
	(In millions)
Net cash provided by (used in) operating activities before changes in operating assets and liabilities	$	1,592		$	974		$	3,321		$	2,006
Changes in operating assets and liabilities		301			—			(543)			(394)
Net cash provided by (used in) operating activities	$	1,893		$	974		$	2,778		$	1,612

Investor Conference Call:

   Due to the pending merger with Chevron Corporation (Chevron), the Corporation will not host a conference call to review its second 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)
	Second Quarter 2024			Second Quarter 2023			First Quarter 2024
Income Statement
Revenues and non-operating income
Sales and other operating revenues	$	3,202		$	2,289		$	3,309
Other, net		53			31			32
Total revenues and non-operating income		3,255			2,320			3,341
Costs and expenses
Marketing, including purchased oil and gas		632			547			622
Operating costs and expenses		490			454			412
Production and severance taxes		64			46			56
Exploration expenses, including dry holes and lease impairment		101			99			42
General and administrative expenses		115			108			124
Interest expense		106			122			113
Depreciation, depletion and amortization		600			497			557
Impairment and other		—			82			—
Total costs and expenses		2,108			1,955			1,926
Income before income taxes		1,147			365			1,415
Provision for income taxes		296			160			348
Net income		851			205			1,067
Less: Net income attributable to noncontrolling interests		94			86			95
Net income attributable to Hess Corporation	$	757		$	119		$	972

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
	Six Months Ended June 30,
Income Statement	2024			2023
Revenues and non-operating income
Sales and other operating revenues	$	6,511		$	4,700
Other, net		85			73
Total revenues and non-operating income		6,596			4,773
Costs and expenses
Marketing, including purchased oil and gas		1,254			1,150
Operating costs and expenses		902			836
Production and severance taxes		120			94
Exploration expenses, including dry holes and lease impairment		143			165
General and administrative expenses		239			244
Interest expense		219			245
Depreciation, depletion and amortization		1,157			988
Impairment and other		—			82
Total costs and expenses		4,034			3,804
Income before income taxes		2,562			969
Provision for income taxes		644			336
Net income		1,918			633
Less: Net income attributable to noncontrolling interests		189			168
Net income attributable to Hess Corporation	$	1,729		$	465

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
	June 30, 2024			December 31, 2023
Balance Sheet Information
Assets
Cash and cash equivalents	$	2,025		$	1,688
Other current assets		1,808			1,742
Property, plant and equipment – net		18,429			17,432
Operating lease right-of-use assets – net		772			720
Finance lease right-of-use assets – net		100			108
Other long-term assets		2,676			2,317
Total assets	$	25,810		$	24,007
Liabilities and equity
Current portion of long-term debt	$	317		$	311
Current portion of operating and finance lease obligations		354			370
Other current liabilities		2,350			2,589
Long-term debt		8,548			8,302
Long-term operating lease obligations		520			459
Long-term finance lease obligations		145			156
Other long-term liabilities		2,375			2,218
Total equity excluding accumulated other comprehensive income (loss)		10,645			9,120
Accumulated other comprehensive income (loss)		(158)			(134)
Noncontrolling interests		714			616
Total liabilities and equity	$	25,810		$	24,007

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
	June 30, 2024			December 31, 2023
Total Debt
Hess Corporation	$	5,405		$	5,402
Midstream (a)		3,460			3,211
Hess Consolidated	$	8,865		$	8,613
(a) Midstream debt is non-recourse to Hess Corporation.
	June 30, 2024			December 31, 2023
Debt to Capitalization Ratio (a)
Hess Consolidated	44.6 %			47.8 %
Hess Corporation as defined in debt covenants	30.8 %			33.6 %
(a) Includes finance lease obligations.

	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2023			2024			2023
Interest Expense
Gross interest expense – Hess Corporation	$	86		$	88		$	173		$	174
Less: Capitalized interest – Hess Corporation		(30)			(10)			(53)			(15)
Interest expense – Hess Corporation		56			78			120			159
Interest expense – Midstream (a)		50			44			99			86
Interest expense – Hess Consolidated	$	106		$	122		$	219		$	245
(a) Midstream interest expense is reported in the Midstream operating segment.

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
	Second Quarter 2024			Second Quarter 2023			First Quarter 2024
Cash Flow Information
Cash Flows from Operating Activities
Net income	$	851		$	205		$	1,067
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation, depletion and amortization		600			497			557
Impairment and other		—			82			—
Exploratory dry hole costs		63			62			—
Exploration lease impairment		7			8			3
Stock compensation expense		20			18			39
Noncash (gains) losses on commodity derivatives, net		—			52			—
Provision (benefit) for deferred income taxes and other tax accruals		51			50			63
Net cash provided by (used in) operating activities before changes in operating assets and liabilities		1,592			974			1,729
Changes in operating assets and liabilities		301			—			(844)
Net cash provided by (used in) operating activities		1,893			974			885
Cash Flows from Investing Activities
Additions to property, plant and equipment - E&P		(1,087)			(778)			(902)
Additions to property, plant and equipment - Midstream		(64)			(43)			(55)
Other, net		(1)			—			(1)
Net cash provided by (used in) investing activities		(1,152)			(821)			(958)
Cash Flows from Financing Activities
Net borrowings (repayments) of debt with maturities of 90 days or less		(455)			77			115
Debt with maturities of greater than 90 days:
Borrowings		600			—			—
Repayments		(2)			—			(3)
Cash dividends paid		(134)			(134)			(137)
Proceeds from sale of Class A shares of Hess Midstream LP		—			167			—
Noncontrolling interests, net		(154)			(132)			(151)
Employee stock options exercised		2			1			11
Payments on finance lease obligations		(2)			(2)			(3)
Other, net		(9)			(4)			(9)
Net cash provided by (used in) financing activities		(154)			(27)			(177)
Net Increase (Decrease) in Cash and Cash Equivalents		587			126			(250)
Cash and Cash Equivalents at Beginning of Period		1,438			2,100			1,688
Cash and Cash Equivalents at End of Period	$	2,025		$	2,226		$	1,438
Additions to Property, Plant and Equipment included within Investing Activities
Capital expenditures incurred	$	(1,193)		$	(956)		$	(923)
Increase (decrease) in related liabilities		42			135			(34)
Additions to property, plant and equipment	$	(1,151)		$	(821)		$	(957)

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
	Six Months Ended June 30,
	2024			2023
Cash Flow Information
Cash Flows from Operating Activities
Net income	$	1,918		$	633
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation, depletion and amortization		1,157			988
Impairment and other		—			82
Exploratory dry hole costs		63			93
Exploration lease impairment		10			13
Stock compensation expense		59			53
Noncash (gains) losses on commodity derivatives, net		—			52
Provision (benefit) for deferred income taxes and other tax accruals		114			92
Net cash provided by (used in) operating activities before changes in operating assets and liabilities		3,321			2,006
Changes in operating assets and liabilities		(543)			(394)
Net cash provided by (used in) operating activities		2,778			1,612
Cash Flows from Investing Activities
Additions to property, plant and equipment - E&P		(1,989)			(1,551)
Additions to property, plant and equipment - Midstream		(119)			(107)
Other, net		(2)			(4)
Net cash provided by (used in) investing activities		(2,110)			(1,662)
Cash Flows from Financing Activities
Net borrowings (repayments) of debt with maturities of 90 days or less		(340)			180
Debt with maturities of greater than 90 days:
Borrowings		600			—
Repayments		(5)			—
Cash dividends paid		(271)			(271)
Common stock acquired and retired		—			(20)
Proceeds from sale of Class A shares of Hess Midstream LP		—			167
Noncontrolling interests, net		(305)			(263)
Employee stock options exercised		13			4
Payments on finance lease obligations		(5)			(4)
Other, net		(18)			(3)
Net cash provided by (used in) financing activities		(331)			(210)
Net Increase (Decrease) in Cash and Cash Equivalents		337			(260)
Cash and Cash Equivalents at Beginning of Period		1,688			2,486
Cash and Cash Equivalents at End of Period	$	2,025		$	2,226
Additions to Property, Plant and Equipment included within Investing Activities
Capital expenditures incurred	$	(2,116)		$	(1,748)
Increase (decrease) in related liabilities		8			90
Additions to property, plant and equipment	$	(2,108)		$	(1,658)

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
	Second Quarter 2024			Second Quarter 2023			First Quarter 2024
Capital and Exploratory Expenditures
E&P Capital and exploratory expenditures
United States
North Dakota	$	318		$	264		$	288
Offshore and Other		138			82			159
Total United States		456			346			447
Guyana		642			508			447
Malaysia and JDA		43			44			28
Other (a)		10			35			5
E&P Capital and exploratory expenditures	$	1,151		$	933		$	927
Total exploration expenses charged to income included above	$	31		$	29		$	39
Midstream Capital expenditures	$	73		$	52		$	35
(a) Other in 2023 includes capital and exploratory expenditures mainly associated with Canada.

	Six Months Ended June 30,
	2024			2023
Capital and Exploratory Expenditures
E&P Capital and exploratory expenditures
United States
North Dakota	$	606		$	496
Offshore and Other		297			111
Total United States		903			607
Guyana		1,089			962
Malaysia and JDA		71			91
Other (a)		15			38
E&P Capital and exploratory expenditures	$	2,078		$	1,698
Total exploration expenses charged to income included above	$	70		$	59
Midstream Capital expenditures	$	108		$	109
(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)
		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
		Second Quarter 2023
Income Statement		United States					International					Total
Total revenues and non-operating income
Sales and other operating revenues		$	1,299				$	988				$	2,287
Other, net			6					2					8
Total revenues and non-operating income			1,305					990					2,295
Costs and expenses
Marketing, including purchased oil and gas (a)			537					27					564
Operating costs and expenses			241					143					384
Production and severance taxes			45					1					46
Midstream tariffs			302					—					302
Exploration expenses, including dry holes and lease impairment			23					76					99
General and administrative expenses			50					11					61
Depreciation, depletion and amortization			212					238					450
Impairment and other			82					—					82
Total costs and expenses			1,492					496					1,988
Results of operations before income taxes			(187)					494					307
Provision for income taxes			—					152					152
Net income (loss) attributable to Hess Corporation		$	(187)		(b)		$	342		(c)		$	155
(a) Includes amounts charged from the Midstream segment. (b) Includes after-tax losses from realized crude oil hedging activities of $34 million (noncash premium amortization: $34 million; cash settlement: $0 million). (c) Includes after-tax losses from realized crude oil hedging activities of $18 million (noncash premium amortization: $18 million; cash settlement: $0 million).

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)
(IN MILLIONS)
	First Quarter 2024
Income Statement	United States			International			Total
Total revenues and non-operating income
Sales and other operating revenues	$	1,523		$	1,780		$	3,303
Other, net		10			1			11
Total revenues and non-operating income		1,533			1,781			3,314
Costs and expenses
Marketing, including purchased oil and gas (a)		589			51			640
Operating costs and expenses		205			133			338
Production and severance taxes		54			2			56
Midstream tariffs		328			—			328
Exploration expenses, including dry holes and lease impairment		34			8			42
General and administrative expenses		64			8			72
Depreciation, depletion and amortization		244			263			507
Total costs and expenses		1,518			465			1,983
Results of operations before income taxes		15			1,316			1,331
Provision for income taxes		—			334			334
Net income (loss) attributable to Hess Corporation	$	15		$	982		$	997
(a) Includes amounts charged from the Midstream segment.

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)
(IN MILLIONS)
		Six Months Ended June 30, 2024
Income Statement		United States					International					Total
Total revenues and non-operating income
Sales and other operating revenues		$	3,063				$	3,435				$	6,498
Other, net			22					20					42
Total revenues and non-operating income			3,085					3,455					6,540
Costs and expenses
Marketing, including purchased oil and gas (a)			1,206					85					1,291
Operating costs and expenses			434					310					744
Production and severance taxes			115					5					120
Midstream tariffs			663					—					663
Exploration expenses, including dry holes and lease impairment			59					84					143
General and administrative expenses			129					17					146
Depreciation, depletion and amortization			510					547					1,057
Total costs and expenses			3,116					1,048					4,164
Results of operations before income taxes			(31)					2,407					2,376
Provision for income taxes			—					614					614
Net income (loss) attributable to Hess Corporation		$	(31)				$	1,793				$	1,762
		Six Months Ended June 30, 2023
Income Statement		United States					International					Total
Total revenues and non-operating income
Sales and other operating revenues		$	2,664				$	2,032				$	4,696
Other, net			15					7					22
Total revenues and non-operating income			2,679					2,039					4,718
Costs and expenses
Marketing, including purchased oil and gas (a)			1,121					62					1,183
Operating costs and expenses			446					261					707
Production and severance taxes			91					3					94
Midstream tariffs			585					—					585
Exploration expenses, including dry holes and lease impairment			43					122					165
General and administrative expenses			104					23					127
Depreciation, depletion and amortization			415					478					893
Impairment and other			82					—					82
Total costs and expenses			2,887					949					3,836
Results of operations before income taxes			(208)					1,090					882
Provision for income taxes			—					322					322
Net income (loss) attributable to Hess Corporation		$	(208)		(b)		$	768		(c)		$	560
(a) Includes amounts charged from the Midstream segment. (b) Includes after-tax losses from realized crude oil hedging activities of $61 million (noncash premium amortization: $61 million; cash settlement: $0 million). (c) Includes after-tax losses from realized crude oil hedging activities of $25 million (noncash premium amortization: $25 million; cash settlement: $0 million).

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION OPERATING DATA
	Second Quarter 2024		Second Quarter 2023		First Quarter 2024
Net Production Per Day (in thousands)
Crude oil - barrels
United States
North Dakota	93		79		88
Offshore	18		23		22
Total United States	111		102		110
Guyana (a)	192		110		190
Malaysia and JDA	5		4		5
Total	308		216		305
Natural gas liquids - barrels
United States
North Dakota	76		68		69
Offshore	1		1		2
Total United States	77		69		71
Natural gas - mcf
United States
North Dakota	256		206		200
Offshore	28		45		41
Total United States	284		251		241
Malaysia and JDA	369		359		358
Total	653		610		599
Barrels of oil equivalent	494		387		476
(a) Production from Guyana includes 29,000 bopd of tax barrels in the second quarter of 2024, 13,000 bopd of tax barrels in the second quarter of 2023 and 33,000 bopd of tax barrels in the first quarter of 2024.

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION OPERATING DATA
	Six Months Ended June 30,
	2024		2023
Net Production Per Day (in thousands)
Crude oil - barrels
United States
North Dakota	90		78
Offshore	20		23
Total United States	110		101
Guyana (a)	191		111
Malaysia and JDA	5		4
Total	306		216
Natural gas liquids - barrels
United States
North Dakota	73		64
Offshore	2		2
Total United States	75		66
Natural gas - mcf
United States
North Dakota	228		182
Offshore	35		47
Total United States	263		229
Malaysia and JDA	363		363
Total	626		592
Barrels of oil equivalent	485		381
(a) Production from Guyana includes 31,000 bopd of tax barrels in the first six months of 2024 and 14,000 bopd of tax barrels in the first six months of 2023.

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION OPERATING DATA
	Second Quarter 2024		Second Quarter 2023		First Quarter 2024
Sales Volumes Per Day (in thousands) (a)
Crude oil – barrels	293		217		308
Natural gas liquids – barrels	76		67		73
Natural gas – mcf	653		610		599
Barrels of oil equivalent	478		386		481
Sales Volumes (in thousands) (a)
Crude oil – barrels	26,677		19,740		28,053
Natural gas liquids – barrels	6,925		6,084		6,650
Natural gas – mcf	59,402		55,548		54,495
Barrels of oil equivalent	43,502		35,082		43,786
			Six Months Ended June 30,
			2024		2023
Sales Volumes Per Day (in thousands) (a)
Crude oil – barrels			301		215
Natural gas liquids – barrels			75		65
Natural gas – mcf			626		592
Barrels of oil equivalent			480		379
Sales Volumes (in thousands) (a)
Crude oil – barrels			54,730		38,901
Natural gas liquids – barrels			13,575		11,845
Natural gas – mcf			113,897		107,240
Barrels of oil equivalent			87,288		68,619
(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
	Second Quarter 2024			Second Quarter 2023			First Quarter 2024
Average Selling Prices
Crude oil - per barrel (including hedging)
United States
North Dakota	$	75.84		$	65.67		$	71.75
Offshore		80.21			68.32			75.86
Total United States		76.54			66.24			72.58
Guyana		82.53			75.82			84.27
Malaysia and JDA		82.77			68.87			81.10
Worldwide		80.29			71.13			80.06
Crude oil - per barrel (excluding hedging)
United States
North Dakota	$	75.84		$	69.22		$	71.75
Offshore		80.21			71.86			75.86
Total United States		76.54			69.79			72.58
Guyana		82.53			77.64			84.27
Malaysia and JDA		82.77			68.87			81.10
Worldwide		80.29			73.74			80.06
Natural gas liquids - per barrel
United States
North Dakota	$	20.08		$	17.90		$	23.03
Offshore		19.60			20.17			21.36
Worldwide		20.07			17.95			22.97
Natural gas - per mcf
United States
North Dakota	$	0.81		$	1.29		$	1.80
Offshore		1.33			1.62			2.11
Total United States		0.86			1.35			1.85
Malaysia and JDA		6.81			5.56			6.49
Worldwide		4.22			3.82			4.62

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION OPERATING DATA
	Six Months Ended June 30,
	2024			2023
Average Selling Prices
Crude oil - per barrel (including hedging)
United States
North Dakota	$	73.84		$	67.05
Offshore		77.78			68.22
Total United States		74.56			67.32
Guyana		83.43			77.50
Malaysia and JDA		81.94			71.02
Worldwide		80.17			72.66
Crude oil - per barrel (excluding hedging)
United States
North Dakota	$	73.84		$	70.41
Offshore		77.78			71.55
Total United States		74.56			70.68
Guyana		83.43			78.76
Malaysia and JDA		81.94			71.02
Worldwide		80.17			74.87
Natural gas liquids - per barrel
United States
North Dakota	$	21.52		$	20.99
Offshore		20.62			22.20
Worldwide		21.49			21.02
Natural gas - per mcf
United States
North Dakota	$	1.24		$	1.83
Offshore		1.79			2.03
Total United States		1.32			1.87
Malaysia and JDA		6.65			5.50
Worldwide		4.41			4.09

 

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For Hess Corporation

Investor Contact:

Jay Wilson

(212) 536-8940

Media Contacts:

Lorrie Hecker

(212) 536-8250

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(281) 881-5170

Source: Hess Corporation

FAQ

What was Hess 's net income for Q2 2024?

Hess reported a net income of $757 million, or $2.46 per share, for Q2 2024.

How much did Hess's production in Guyana increase in Q2 2024?

Hess's net production in Guyana increased by 75% to 192,000 barrels of oil per day in Q2 2024 compared to the same quarter last year.

What was Hess's average realized crude oil selling price in Q2 2024?

Hess's average realized crude oil selling price was $80.29 per barrel in Q2 2024, up from $71.13 per barrel in Q2 2023.

How much cash and cash equivalents did Hess have at the end of Q2 2024?

Excluding the Midstream segment, Hess had $1.9 billion in cash and cash equivalents at June 30, 2024.

What is Hess's production forecast for Guyana in Q3 2024?

Hess forecasts Guyana net production to be in the range of 170,000 to 175,000 barrels of oil per day in Q3 2024.