Why Is Hess (HES) Up 9.1% Since Last Earnings Report?

It has been about a month since the last earnings report for Hess (HES). Shares have added about 9.1% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Hess due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Hess Q3 Earnings Beat on Higher Production VolumesHess Corporation 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.  Operational UpdateExploration and 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.MidstreamThe 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.How Have Estimates Been Moving Since Then?It turns out, estimates review have trended downward during the past month.The consensus estimate has shifted -15.64% due to these changes.VGM ScoresAt this time, Hess has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Hess has a Zacks Rank #5 (Strong Sell). 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Click to get this free report Hess Corporation (HES): 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