Hess Surpasses Q3 Expectations, Raises 2024 Capital Expenditure Outlook

NEW YORK - Hess Corporation (NYSE:HES) reported third-quarter results that exceeded expectations on Wednesday, as higher production volumes offset lower realized sales prices. The oil and gas producer announced adjusted earnings of $2.14 per share, surpassing analysts’ forecasts of $1.85 per share. Revenue rose to $3.2 billion, exceeding expectations of $2.99 billion.

Net production increased by 17% year-on-year to 461,000 barrels of oil equivalent per day (boepd), driven by a 57% increase in Guyana output to 170,000 barrels per day. Bakken production rose by 8% to 206,000 boepd.

CEO John Hess stated, "Our strong production growth, particularly in Guyana, drove our third-quarter performance above expectations. We continue to successfully execute our strategy and deliver industry-leading cash flow growth."

However, realized crude oil sales prices fell to $77.06 from $81.53 a year ago.

Hess raised its 2024 capital expenditure forecast to $4.9 billion from the previously estimated $4.2 billion, citing plans to accelerate the acquisition of floating production vessels for its Guyana projects.

The company also announced a 14% increase in its quarterly dividend per share to $0.50.