Hess Corporation reported a net income of US$757 million, or US$2.46 per share, in the second quarter of 2024. This was a significant uptick from the US$119 million, or US$0.39 per share, reported in the second quarter of 2023.
In its second-quarter earnings report, Hess said on an adjusted basis, it made a net income of US$809 million, or US$2.62 per share, compared to US$201 million, or US$0.65 per share, in the same period last year, due to higher production volumes and realized selling prices.
Hess reports 180% profit jump, driven by Payara start-up in Guyana | OilNOW
Hess reported that its exploration and production (E&P) net income was US$765 million in Q2 2024, up from US$155 million in Q2 2023. Adjusted E&P net income for Q2 2024 was US$817 million, compared to US$237 million last year. The average realized crude oil selling price was US$80.29 per barrel, up from US$71.13 per barrel in the previous year. Natural gas liquids (NGL) averaged US$20.07 per barrel, compared to US$17.95, and natural gas averaged US$4.22 per mcf, up from US$3.82.
Hess’ net production rose to 494,000 barrels of oil equivalent per day (boe/d) in Q2 2024 from 387,000 boe/d in Q2 2023, driven by higher production in Guyana and the Bakken. The company’s cash operating costs decreased to US$11.69 per barrel of oil equivalent (boe) from US$13.97 per boe, primarily due to higher production volumes.
Hess’ Guyana output now on par with its leading Bakken asset | OilNOW
In the Bakken, net production increased to 212,000 boe/d in Q2 2024 from 181,000 boe/d in Q2 2023, reflecting more drilling and completion activity. NGL and natural gas volumes received under percentage of proceeds contracts were 26,000 boe/d, up from 22,000 boe/d. Hess said it operated four rigs, drilling 38 wells, completing 37, and bringing 31 new wells online. Q3 2024 production is expected to be between 200,000 boe/d and 205,000 boe/d due to lower volumes from percentage of proceeds contracts and planned maintenance. Its Gulf of Mexico asset’s net production was 24,000 boe/d in Q2 2024, down from 32,000 boe/d in Q2 2023 due to planned maintenance.
Turning its Guyana asset – the Stabroek Block – net production was 192,000 b/d in Q2 2024, up from 110,000 b/d. Hess sold 14 cargos of crude oil in the quarter, up from nine in Q2 2023, with the same number expected in Q3.
Hess holds a 30% stake in the Stabroek Block, alongside operator ExxonMobil and CNOOC. Chevron has signed a definitive agreement to acquire Hess, driven strongly by Hess’ 30% stake in the Stabroek Block offshore Guyana. The other Stabroek Block partners, Exxon and CNOOC, have filed for arbitration at the International Chamber of Commerce in London, arguing that a right of first refusal (ROFR) clause in their joint operating agreement requires Hess to offer them its 30% stake before Hess could be sold to Chevron. Discoveries continue to be made and new projects are being pursued, raising the stakes. The dispute could delay the planned acquisition to 2025.
