Hess Reports Estimated Results for the Third Quarter of 2024

Rhea-AI Summary

Hess reported Q3 2024 net income of $498 million ($1.62 per share), compared to $504 million ($1.64 per share) in Q3 2023. Adjusted net income rose to $660 million ($2.14 per share). Oil and gas production increased 17% to 461,000 boepd, with Guyana production up 57% to 170,000 bopd and Bakken production up 8% to 206,000 boepd. The company increased its quarterly dividend by 14% to $0.50 per share. E&P capital expenditure guidance for 2024 was raised to $4.9 billion from $4.2 billion, reflecting accelerated FPSO vessel purchases.

Positive

• 17% increase in total production to 461,000 boepd
• 57% increase in Guyana production to 170,000 bopd
• 31% increase in adjusted net income to $660 million
• 14% dividend increase to $0.50 per share
• Reduced cash operating costs to $13.84 per boe from $14.04

Negative

• Lower realized crude oil selling price at $77.06/barrel vs $81.53/barrel in Q3 2023
• Decreased natural gas selling price to $3.81/mcf from $4.57/mcf
• Southeast Asia production declined to 47,000 boepd from 69,000 boepd
• $92 million impairment charge for Conger asset
• Increased capital expenditure guidance by $700 million

Insights

Financial Analyst

Hess delivered a solid Q3 2024 with $660 million in adjusted net income ($2.14/share), up from $504 million in Q3 2023. Key highlights include a 17% increase in production to 461,000 boepd, driven by impressive 57% growth in Guyana output. The company raised its dividend by 14% to $0.50 per share.

The increased $4.9 billion capital expenditure guidance, up from $4.2 billion, reflects strategic acceleration of FPSO vessel purchases. Despite lower realized oil prices ($77.06/barrel vs $81.53), strong operational execution and production growth helped maintain profitability. Cash position remains healthy at $1.9 billion with a conservative 28.9% debt-to-cap ratio.

The pending Chevron merger adds another dimension to this strong operational performance, potentially creating significant synergies in the future.

Energy Industry Analyst

The Guyana operations continue to be Hess's crown jewel, with production reaching 170,000 bopd and multiple development phases progressing well. The Yellowtail, Uaru and Whiptail projects are on track to add 750,000 bopd of gross capacity by 2027, while the new Hammerhead development could contribute an additional 120,000-180,000 bopd by 2029.

Bakken performance remains robust at 206,000 boepd, with efficient four-rig operations and strong well productivity. The strategic focus on these two core assets - Guyana and Bakken - has positioned Hess ideally for sustainable growth. The accelerated FPSO purchases demonstrate confidence in Guyana's long-term potential and should enhance operational control.

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

NEW YORK--(BUSINESS WIRE)-- 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

 

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Source: Hess Corporation

FAQ

What was Hess 's (HES) net income in Q3 2024?

Hess reported net income of $498 million, or $1.62 per share, in Q3 2024.

How much did Hess (HES) increase its quarterly dividend in September 2024?

Hess increased its quarterly dividend by 14% to $0.50 per share ($2.00 per share annualized).

What was Hess's (HES) Guyana production in Q3 2024?

Hess's net production in Guyana was 170,000 barrels of oil per day, up 57% from 108,000 bopd in Q3 2023.

What is Hess's (HES) updated capital expenditure guidance for 2024?

Hess increased its 2024 E&P capital expenditure guidance to $4.9 billion from $4.2 billion.