Hess Q3 Earnings Beat Estimates, Revenues Rise Year Over Year

Hess Corporation HES reported third-quarter 2024 adjusted earnings per share (EPS) of $2.14, which beat the Zacks Consensus Estimate of $1.88. The bottom line improved from the year-ago level of $1.64.Total quarterly revenues increased to $3,197 million from $2,837 million in the year-ago period. The top line also beat the Zacks Consensus Estimate of $3,084 million.The strong quarterly results can be attributed to higher oil equivalent production volumes. Hess Corporation Price, Consensus and EPS Surprise Hess Corporation price-consensus-eps-surprise-chart | Hess Corporation QuoteOperational UpdateExploration & ProductionThe Exploration and Production business reported adjusted earnings of $651 million, up from $529 million a year ago. The business benefited from an increase in realized commodity prices.Quarterly hydrocarbon production totaled 461 thousand barrels of oil equivalent per day (MBoe/d), up from 395 MBoe/d in the year-ago period, primarily due to higher production in Guyana and Bakken. The reported figure also beat our estimate of 460.2 MBoe/d. Crude oil production increased from 221 thousand barrels per day (MBbls/d) in the third quarter of 2023 to 293 MBbls/d at the end of the reported quarter. The figure also beat our estimate of 287.8 MBbls/d.NGL production totaled 78 MBbls/d, up from 71 MBbls/d in the prior-year quarter. The reported figure beat our estimate of 71.1 MBbls/d.Natural gas production totaled 538 thousand cubic feet per day (Mcf/d), down from 615 Mcf/d a year ago. The reported figure also missed our estimate of 607.5 Mcf/d.Worldwide crude oil realization per barrel of $77.06 (excluding the impacts of hedging) decreased from $84.07 in the year-ago period. Also, the global natural gas price declined to $3.81 per Mcf from the year-ago figure of $4.57. The average global NGL selling price increased to $20.91 per barrel from $20.17 a year ago.Mid-streamThe company generated adjusted net earnings of $69 million, up from $66 million a year ago.Operating ExpensesOperating expenses for the third quarter totaled $527 million compared with the year-ago level of $467 million. The reported figure exceeded our projection of $507.7 million.Exploration expenses decreased to $44 million from $65 million recorded in the year-ago period. Marketing costs increased to $713 million from $696 million a year ago.Total costs and expenses increased to $2,333 million from $2,020 million in the prior-year period.FinancialsNet cash provided by operating activities amounted to $1,510 million. Hess’ capital expenditure for exploration and production activities totaled $1,104 million.As of Sept. 30, 2024, the company had $1,864 million in cash and cash equivalents. Its long-term debt was $8,576 million at the end of the third quarter.OutlookFor the fourth quarter, Hess expects exploration and production net production of 475-485 thousand barrels of oil equivalent per day. The company forecasts a total exploration and production capital and exploratory expenditure of $4.9 billion for full-year 2024, up from the previous guidance of $4.2 billion.Zacks Rank & Stocks to ConsiderHess currently carries a Zacks Rank #4 (Sell).Investors interested in the energy sector may look at some better-ranked stocks like Archrock Inc. AROC, Sunoco LP SUN and The Williams Companies, Inc. WMB. While Archrock sports a Zacks Rank #1 (Strong Buy), Sunoco and Williams Companies carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Archrock is an energy infrastructure company based in the United States. It focuses on midstream natural gas compression, provides natural gas contract compression services and generates stable fee-based revenues.The Zacks Consensus Estimate for AROC’s 2024 EPS is pegged at $1.10. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.Sunoco is a leading wholesale motor fuel distributor in the United States, boasting a vast distribution network spanning 40 states. With long-term contracts servicing more than 10,000 convenience stores, it distributes over 10 fuel brands, ensuring a stable revenue stream. SUN currently has a Value Score of A.The Zacks Consensus Estimate for 2024 and 2025 earnings per unit is pegged at $9.28 and $6.76, respectively. The partnership has witnessed upward earnings estimate revisions for 2025 in the past seven days.The Williams Companies is a premier energy infrastructure provider in North America. The company’s core operations include finding, producing, gathering, processing, and transporting natural gas and natural gas liquids. Boasting a widespread pipeline system of more than 33,000 miles, Williams is one of the largest domestic transporters of natural gas by volume.The Zacks Consensus Estimate for WMB’s 2024 EPS is pegged at $1.75. The company has witnessed upward earnings estimate revisions for 2024 in the past seven days.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Williams Companies, Inc. (The) (WMB): Free Stock Analysis Report Hess Corporation (HES): Free Stock Analysis Report Sunoco LP (SUN): Free Stock Analysis Report Archrock, Inc. (AROC): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks