Core Viewpoint - Hess Corporation reported better-than-expected fourth-quarter earnings, driven by increased production volumes despite lower crude and natural gas prices [2][3]. Financial Performance - Adjusted EPS for Q4 2024 was $1.76, exceeding the Zacks Consensus Estimate of $1.51, remaining flat year-over-year [2]. - Total quarterly revenues rose to $3,225 million from $3,035 million year-over-year, surpassing the Zacks Consensus Estimate of $3,032 million [2]. Production and Costs - Exploration and Production segment reported adjusted earnings of $529 million, slightly down from $531 million a year ago, impacted by lower realized prices [4]. - Hydrocarbon production increased to 495 MBoe/d from 418 MBoe/d year-over-year, primarily due to higher output in Guyana and Bakken [4]. - Crude oil production rose to 315 MBbls/d from 244 MBbls/d year-over-year, exceeding estimates [5]. - Operating expenses totaled $532 million, up from $473 million a year ago, with exploration expenses increasing to $139 million from $87 million [8]. Pricing Trends - Worldwide crude oil realization per barrel decreased to $72.10 from $78.95 year-over-year, while natural gas prices fell to $4.10 per Mcf from $4.51 [6]. Financial Position - Net cash provided by operating activities was $1,312 million, with capital expenditures for exploration and production at $1,677 million [9]. - As of December 31, 2024, cash and cash equivalents stood at $1,171 million, with long-term debt at $8,555 million [10]. Future Outlook - For Q1 2025, Hess expects net production of 465-475 MBoe/d and forecasts total capital and exploratory expenditure of $4.5 billion for 2025 [11]. - Recent estimates have shown a 9.52% upward revision trend, indicating positive market sentiment [12].

Core Insights - The market is showing potential for certain stocks, indicating that increased capital and attention may lead to higher returns for shareholders [1][2] Group 1: Hess Co. (NYSE: HES) - Hess stock has seen a 12% increase this year, prompting analysts to adopt a bullish outlook, with a 12-month price forecast of $170.60, representing a 16.15% upside [3][4] - UBS Group has raised its valuation for Hess stock to a high of $186 per share, suggesting a potential new 52-week high and a net upside of 23% from current trading levels [4][6] - Analysts forecast earnings per share (EPS) for Hess to reach $2.10 by Q3 2025, a 20% increase from the current EPS of $1.76, indicating strong future growth potential [6] Group 2: Steel Dynamics Inc. (NASDAQ: STLD) - Steel Dynamics stock has rallied 16.7% this year, leading to an 18.6% contraction in short interest, signaling bearish traders' capitulation [8][9] - Analysts have upgraded Steel Dynamics to an overweight rating, with a 12-month price forecast of $146.22, implying a 9.68% upside [7][10] - The stock's positive momentum is supported by improving industry dynamics and a favorable market environment [9][10] Group 3: Uber Technologies Inc. (NYSE: UBER) - Uber's stock is forecasted to reach $90.94, reflecting a 22.56% upside, driven by its scalable business model and implementation of artificial intelligence [11][13] - The company has achieved a gross margin of 33.2% and a return on invested capital (ROIC) of over 25% in the past year, indicating strong financial health [12][13] - Analysts at Evercore have maintained an outperform rating on Uber, with a target price of $115 per share, suggesting a potential rally of 50.5% from current levels [13][14]

Production and Reserves - Hess Corporation has discovered a significant resource base at the Stabroek Block, with plans to increase production capacity to approximately 1.7 million gross barrels of oil per day (bopd) by the end of 2030[31]. - The company currently operates three Floating Production Storage and Offloading (FPSO) units and aims to have eight FPSOs producing by 2030[31]. - Hess holds a 30% interest in the Stabroek Block, which is expected to support the potential for up to ten FPSOs based on discovered resources[31]. - Proved reserves as of December 31, 2024, included 891 million barrels of crude oil and condensate, 292 million barrels of natural gas liquids, and 1,528 million cubic feet of natural gas, totaling 1,438 million barrels of oil equivalent (boe)[34]. - Proved undeveloped reserves accounted for 42% of total proved reserves on a boe basis as of December 31, 2024, up from 41% in 2023[35]. - Worldwide crude oil production in 2024 was 111,519 thousand barrels, a significant increase from 81,941 thousand barrels in 2023[36]. - Net production from Guyana averaged 186,000 barrels of oil per day (bopd) in 2024, with plans to increase production capacity to approximately 1.7 million gross bopd by the end of 2030[42][41]. - The production from Guyana increased to 68,136 thousand barrels in 2024, up from 41,831 thousand barrels in 2023[36]. Financial Performance and Risks - Hess Corporation's future financial and operational results are subject to various risks, including regulatory approvals and market price fluctuations[10]. - The anticipated benefits and synergies from the proposed merger with Chevron Corporation may not be realized within the expected timeframe[11]. - The average selling price of crude oil per barrel in the United States increased to $72.70 in 2024 from $70.80 in 2023, a rise of 2%[56]. - Average production costs per barrel of oil equivalent in the United States decreased to $27.11 in 2024 from $27.61 in 2023, a decline of 1.8%[58]. - The average crude oil price used for determining proved reserves at December 31, 2024, was $74.88 per barrel for West Texas Intermediate (WTI)[34]. Exploration and Development Activities - The company is engaged in exploration activities primarily offshore Guyana, in the U.S. Gulf of America, and offshore Suriname[31]. - The company plans to operate four drilling rigs in the Bakken and drilled 136 wells in 2024, bringing total operated production wells to 1,864[38]. - The company drilled a total of eight successful exploration and appraisal wells in 2024, with plans to utilize five drillships for continued exploration and development activities in 2025[48]. - The company has sanctioned multiple developments in Guyana, including Yellowtail with a production capacity of approximately 250,000 gross bopd expected in Q4 2025, and Uaru with a similar capacity expected in 2026[43][44]. Midstream Operations - The Midstream segment includes a 38% consolidated ownership interest in Hess Midstream LP, providing fee-based services primarily in the Bakken shale play[32]. - Midstream segment revenues are primarily generated from fee-based services, with commercial agreements extended through December 31, 2033[72]. - Hess Midstream LP completed three public equity offerings totaling 35.7 million Class A shares in 2024[69]. - The natural gas gathering and compression system has a current capacity of approximately 675 mmcfd, with an additional 50 mmcfd of net compression capacity expected in 2024[73]. - The crude oil gathering system has a capacity of approximately 290,000 bopd[73]. Environmental and Regulatory Considerations - Hess Corporation's operations are influenced by environmental regulations and sustainability initiatives, which may impact operational changes and expenditures[11]. - The company is subject to increasingly stringent environmental regulations, which may lead to higher capital expenditures and operating expenses[86]. - Environmental remediation expenditures were $17 million in 2024, down from $28 million in 2023 and $23 million in 2022[86]. - The company is involved in several industry-wide task forces to improve oil spill prevention and response methods[79]. Human Capital and Corporate Culture - As of December 31, 2024, the company had a total of 1,797 employees globally[88]. - The company maintains a total workforce diversity rate of 26% for women and 26% for minorities in 2024, showing stability compared to previous years[95]. - The company’s human capital strategy focuses on professional development and employee engagement, with a commitment to fostering an inclusive workplace culture[87][91]. - The company emphasizes safety and well-being through various programs designed to ensure employees return home safely every day[90]. - The company has six employee resource groups that contribute to sustaining an inclusive environment and partnering with diverse organizations[93]. Merger and Acquisition Activities - The company entered into a Merger Agreement with Chevron, where stockholders will receive 1.025 shares of Chevron common stock for each share of Hess common stock if the Merger is completed[33]. - The arbitration regarding the applicability of a right of first refusal related to the Merger is scheduled for May 2025, with a decision expected in Q3 2025[33]. - The proposed merger with Chevron Corporation is expected to provide anticipated economic benefits, although it faces regulatory approval risks[10].

Group 1 - Hess Midstream LP (NYSE: HESM) has performed well over the past year, with a 21% increase in stock price and a nearly 7% dividend yield, reaching a 52-week high [1] - The company reported solid financial results on Wednesday, contributing to its strong stock performance [1] Group 2 - The article emphasizes the importance of macro views and stock-specific turnaround stories in achieving outsized returns with a favorable risk/reward profile [1]

Financial Performance - Hess Corporation reported fourth-quarter 2024 adjusted earnings per share (EPS) of $1.63, exceeding the Zacks Consensus Estimate of $1.51, with the bottom line remaining flat year over year [1] - Total quarterly revenues increased to $3,225 million from $3,035 million in the year-ago period, also beating the Zacks Consensus Estimate of $3,032 million [1] Production and Operations - The Exploration and Production segment reported adjusted earnings of $529 million, slightly down from $531 million a year ago, impacted by lower realized crude and natural gas prices [3] - Quarterly hydrocarbon production totaled 495 thousand barrels of oil equivalent per day (MBoe/d), up from 418 MBoe/d in the prior year, primarily due to increased production in Guyana and Bakken, surpassing the estimate of 479.3 MBoe/d [3] - Crude oil production rose from 244 MBbls/d in Q4 2023 to 315 MBbls/d, exceeding the estimate of 303.6 MBbls/d [4] - NGL production increased to 79 MBbls/d from 73 MBbls/d year-over-year, also beating the estimate of 74.9 MBbls/d [4] - Natural gas production slightly decreased to 607 thousand cubic feet per day (Mcf/d) from 608 Mcf/d a year ago, but was higher than the estimate of 604.7 Mcf/d [4] Pricing and Costs - Worldwide crude oil realization per barrel was $72.10, down from $78.95 in the previous year, while global natural gas prices declined to $4.10 per Mcf from $4.51 [5] - Average global NGL selling price increased to $23.05 per barrel from $20.92 year-over-year [5] - Operating expenses totaled $532 million, up from $473 million a year ago, exceeding the projection of $474 million [7] - Total costs and expenses decreased to $2,297 million from $2,350 million in the prior-year period [7] Financial Position - Net cash provided by operating activities was $1,312 million, with capital expenditure for exploration and production activities totaling $1,677 million [8] - As of December 31, 2024, the company had $1,171 million in cash and cash equivalents, with long-term debt at $8,555 million [8] Future Outlook - For Q1 2025, Hess expects exploration and production net production of 465-475 thousand barrels of oil equivalent per day [10] - The company forecasts total exploration and production capital and exploratory expenditure of $4.5 billion for the full year 2025 [10]

Company Performance - Hess reported quarterly earnings of $1.76 per share, exceeding the Zacks Consensus Estimate of $1.51 per share, and up from $1.63 per share a year ago, representing an earnings surprise of 16.56% [1] - The company posted revenues of $3.23 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 6.38%, compared to $3.04 billion in the same quarter last year [2] - Over the last four quarters, Hess has consistently surpassed consensus EPS estimates and revenue estimates [2] Stock Movement and Outlook - Hess shares have increased approximately 9.1% since the beginning of the year, outperforming the S&P 500's gain of 3.2% [3] - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $1.81 for the coming quarter and $7.69 for the current fiscal year [7] - The estimate revisions trend for Hess is currently mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Oil and Gas - Integrated - United States industry is currently ranked in the bottom 46% of over 250 Zacks industries, suggesting potential challenges for stocks in this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Net income for the fourth quarter of 2024 was $542 million, or $1.76 per share, compared to $413 million, or $1.34 per share, in the fourth quarter of 2023, reflecting a 31% increase in net income year-over-year[3] - Adjusted net income for the year ended December 31, 2024, was $2,983 million, a 92.5% increase from $1,552 million in 2023[35] - Total revenues and non-operating income for the year ended December 31, 2024, reached $13,018 million, compared to $10,645 million in 2023, reflecting a 22.3% growth[36] - The company reported a net income of $640 million for Q4 2024, up from $503 million in Q4 2023, representing a 27.3% increase[41] - For the year ended December 31, 2024, total revenues and non-operating income were $12,907 million, compared to $10,550 million in 2023, marking a 22.4% increase[50] - The company reported a net income of $2,780 million for the year ended December 31, 2024, compared to $1,601 million in 2023, reflecting a 73.2% increase[50] Production and Reserves - Oil and gas net production reached 495,000 barrels of oil equivalent per day (boepd), an 18% increase from 418,000 boepd in the fourth quarter of 2023[4] - Guyana net production surged to 195,000 barrels of oil per day (bopd), a 52% increase from 128,000 bopd in the fourth quarter of 2023[4] - Year-end proved reserves were estimated at 1.44 billion barrels of oil equivalent (boe), an increase from 1.37 billion boe at the end of 2023, with a reserve replacement rate of 138%[9] - Daily net production in Q4 2024 was 315,000 barrels of oil equivalent, a 29.1% increase from 244,000 barrels in Q4 2023[53] - Hess Corporation's total barrels of oil equivalent production for the year ended December 31, 2024, was 481,000 barrels per day, an increase from 394,000 barrels per day in 2023, representing a 22.0% growth[56] Capital Expenditures - E&P capital and exploratory expenditures totaled $1,677 million in the fourth quarter of 2024, up from $1,480 million in the prior-year quarter, including $635 million for the purchase of two floating production, storage, and offloading vessels[4] - Full year 2025 E&P capital and exploratory expenditures are expected to be approximately $4.5 billion, including capitalized interest of about $240 million[16] - Total capital and exploratory expenditures for 2024 amounted to $4,859 million, an increase from $4,176 million in 2023, reflecting a 16.3% rise[43] - The company incurred $1,720 million in capital expenditures in Q4 2024, compared to $1,518 million in Q4 2023, indicating a 13.3% increase[41] Cash Flow and Costs - Net cash provided by operating activities was $1,312 million in the fourth quarter of 2024, slightly down from $1,344 million in the prior-year quarter[19] - Net cash provided by operating activities before changes in operating assets and liabilities was $6,353 million for the year ended December 31, 2024, an increase of 41.3% from $4,494 million in 2023[35] - The company reported a net cash provided by operating activities of $5,600 million for the year ended December 31, 2024, compared to $3,942 million in 2023, marking a 42.1% increase[35] - Cash operating costs decreased to $12.95 per boe in the fourth quarter of 2024, compared to $13.29 per boe in the fourth quarter of 2023[8] Debt and Liabilities - The debt to capitalization ratio improved to 28.3% at December 31, 2024, down from 33.6% at December 31, 2023[18] - The debt to capitalization ratio for Hess Consolidated improved to 42.1% in 2024 from 47.8% in 2023[38] - Hess Corporation's total liabilities as of December 31, 2024, were $15,127 million, compared to $14,887 million in 2023, reflecting a slight increase[37] Pricing and Market Conditions - The average realized crude oil selling price was $72.10 per barrel in the fourth quarter of 2024, down from $76.63 per barrel in the prior-year quarter[6] - Average selling price of crude oil per barrel (including hedging) in the United States increased to $72.70 in 2024 from $70.80 in 2023, representing a growth of 2.5%[64] - Average selling price of crude oil per barrel (excluding hedging) in Guyana decreased to $80.04 in 2024 from $82.20 in 2023, a decline of 2.6%[64] - Average selling price of natural gas liquids per barrel in North Dakota increased to $21.75 in 2024 from $20.77 in 2023, an increase of 4.7%[64] - Average selling price of natural gas per mcf in the United States decreased to $1.25 in 2024 from $1.76 in 2023, a decline of 29.0%[64] Future Outlook - Hess Corporation is currently in the process of a merger with Chevron Corporation, which may impact future financial results and operational strategies[27] - The company anticipates continued growth in crude oil and natural gas production, with a focus on sustainability and environmental initiatives[28]

Core Viewpoint - Hess Corporation is expected to report its fourth-quarter 2024 results on January 29, with earnings anticipated to be impacted by fluctuating commodity prices and production performance [1][4][7]. Earnings Performance - In the last reported quarter, Hess achieved earnings of $2.14 per share, surpassing the Zacks Consensus Estimate of $1.88, primarily due to increased oil equivalent production volumes [1]. - The company has consistently beaten earnings estimates in the past four quarters, with an average surprise of 29.03% [2]. - The Zacks Consensus Estimate for fourth-quarter earnings per share is $1.63, reflecting one upward and two downward revisions in the last 30 days, aligning with the prior year's reported figure [2] Revenue Expectations - The Zacks Consensus Estimate for revenues stands at $3.07 billion, indicating a 1.01% improvement from the same period last year [3]. Production Outlook - Hess is expected to maintain stable performance in the fourth quarter, supported by a strong production outlook from its premium untapped drilling locations in the Bakken shale and the Stabroek Block offshore Guyana [4]. Commodity Price Challenges - The spot price of West Texas Intermediate crude oil has decreased by 10.03% year over year and 7.44% sequentially, which may negatively affect Hess's profitability [5]. - Natural gas prices have also seen a significant decline, with Henry Hub spot natural gas averaging $2.44 per million British thermal units (MMBtu) in the fourth quarter, down from $2.74/MMBtu a year ago [6]. - The drop in commodity prices is expected to impact the profitability of exploration and production companies like Hess, with anticipated increases in unit costs per barrel of oil equivalent potentially raising input costs [7]. Earnings Prediction - Current analysis suggests that Hess may not achieve an earnings beat this quarter, with an Earnings ESP of -5.96% and a Zacks Rank of 3 (Hold) [8].

Core Insights - Zacks Premium offers tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores provide a framework for evaluating stocks based on value, growth, and momentum, aiding in identifying securities likely to outperform the market [2][3] Value Score - The Value Style Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow to find attractive investment opportunities [3] Growth Score - The Growth Style Score emphasizes a company's financial health and future potential by analyzing projected and historical earnings, sales, and cash flow to identify stocks with sustainable growth [4] Momentum Score - The Momentum Style Score helps investors capitalize on price trends by assessing factors like short-term price changes and monthly earnings estimate shifts, guiding optimal entry points for stocks [5] VGM Score - The VGM Score combines the Value, Growth, and Momentum Scores, serving as a comprehensive indicator to identify stocks with the best overall potential based on weighted styles [6] Zacks Rank - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to assist investors in building successful portfolios, with 1 (Strong Buy) stocks historically yielding an average annual return of +25.41% since 1988 [7][8] Stock to Watch: Hess (HES) - Hess is a prominent oil and natural gas exploration and production company, primarily active in offshore Guyana, the U.S. Gulf of Mexico, and other regions [12] - Currently rated 3 (Hold) by Zacks, Hess has a VGM Score of A and a Momentum Style Score of A, with shares increasing by 11.5% over the past four weeks [12][13] - Recent upward revisions in earnings estimates by analysts have raised the Zacks Consensus Estimate for Hess to $9.40 per share, with an average earnings surprise of 29% [13]

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Hess (HES) . This company, which is in the Zacks Oil and Gas - Integrated - United States industry, shows potential for another earnings beat.When looking at the last two reports, this oil and gas producer has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 9.74%, on average, in t ...