Hess Corporation (HES) has announced that it received authorization from the board of directors to increase its regular quarterly dividend. The new dividend of 50 cents per share reflects an increase of 14.3% from the prior amount of 43.75 cents. The hiked dividend will be paid on Sept. 30 to common stockholders of record at the close of business on Sept. 16. Merger With Chevron to Boost Cash Returns Hess expects its shareholders to receive roughly four times higher quarterly dividends after its merger with ...

Hess Corporation (HES) is currently looking for partner(s) to continue exploration at Block 59 offshore Suriname. This block was previously held by a consortium of ExxonMobil, Equinor and Hess, with each company owning a one-third share. However, in July 2024, ExxonMobil and Equinor transferred their ownership to Hess Corporation in a non-financial transaction. According to Staatsolie, the state-owned oil company at Suriname, Hess Corporation has until July 2025 to find a new partner and proceed with the ex ...

Financial Performance - Net income for the six months ended June 30, 2024, was $1,918 million, compared to $633 million for the same period in 2023, reflecting a significant increase of 203.5%[9] - For the three months ended June 30, 2024, net income was $757 million, compared to $119 million for the same period in 2023, representing a significant increase[15] - The company reported comprehensive income attributable to Hess Corporation of $733 million for the three months ended June 30, 2024, compared to $449 million for the same period in 2023, an increase of 63.4%[9] - Net income attributable to Hess Corporation for the six months ended June 30, 2024, was $1,729 million, compared to $465 million for the same period in 2023[32] - In Q2 2024, Hess Corporation reported a net income of $757 million, a significant increase from $119 million in Q2 2023, with adjusted net income rising to $809 million from $201 million[53] - Exploration and Production segment net income for Q2 2024 was $765 million, up from $155 million in Q2 2023, with adjusted net income increasing to $817 million from $237 million[54] - Net income attributable to Hess Corporation for the first six months of 2024 was $1,762 million, compared to $560 million in the same period of 2023, representing a 214.3% increase[63] Assets and Liabilities - Total current assets increased to $3,833 million as of June 30, 2024, up from $3,430 million at December 31, 2023, representing an increase of 11.8%[4] - Total liabilities increased to $14,609 million as of June 30, 2024, compared to $14,405 million at December 31, 2023, an increase of 1.4%[4] - Long-term debt increased to $8,548 million as of June 30, 2024, from $8,302 million at December 31, 2023, an increase of 3%[4] - The company’s total equity rose to $11,201 million as of June 30, 2024, compared to $9,602 million at December 31, 2023, reflecting an increase of 16.6%[4] - Total debt as of June 30, 2024, was $8,865 million, compared to $8,613 million at December 31, 2023[80] - The company's long-term debt had a carrying value of $8,865 million and a fair value of $9,030 million as of June 30, 2024[88] Cash Flow and Liquidity - Cash and cash equivalents at the end of the period rose to $2,025 million, up from $1,688 million at the beginning of the year, marking an increase of 20%[12] - Net cash provided by operating activities for the six months ended June 30, 2024, was $2,778 million, compared to $1,612 million for the same period in 2023, an increase of 72.2%[12] - Cash and cash equivalents as of June 30, 2024, were $2,025 million, up from $1,688 million at December 31, 2023[80] - As of June 30, 2024, the company had $1.9 billion in cash and cash equivalents and total liquidity of approximately $5.2 billion[83] - The company expects cash flow from operating activities to be sufficient to fund upcoming debt maturities and capital investment programs in 2024[83] Inventory and Retained Earnings - Total inventories increased to $382 million as of June 30, 2024, from $304 million as of December 31, 2023, reflecting a rise of approximately 25.7%[19] - Retained earnings grew to $3,771 million as of June 30, 2024, up from $2,318 million at December 31, 2023, indicating a growth of 62.5%[4] - The company’s retained earnings increased to $3,771 million as of June 30, 2024, compared to $1,670 million as of June 30, 2023, marking a growth of approximately 125%[15] Mergers and Acquisitions - On October 22, 2023, the company entered into a merger agreement with Chevron Corporation, with stockholders set to receive 1.025 shares of Chevron common stock for each share of Hess common stock[17] - The merger is anticipated to complete regulatory reviews by the third quarter of 2024, pending arbitration outcomes related to Hess Guyana Exploration Limited[17] - The company entered into a Merger Agreement with Chevron, where Hess stockholders will receive 1.025 shares of Chevron common stock for each share of Hess common stock if the merger is completed[52] - The arbitration proceedings regarding the applicability of the Stabroek ROFR to the Merger are scheduled for a hearing in May 2025[96] Stock and Shareholder Activities - The company declared dividends on common stock totaling $135 million for the three months ended June 30, 2024, consistent with the previous year[15] - The company approved a new stock repurchase authorization of up to $1 billion on March 1, 2023, but no shares were repurchased during the three months ended June 30, 2024[98] - The company is subject to certain restrictions on stock repurchases due to the ongoing Merger Agreement[98] Operational Highlights - Total net production averaged 494,000 barrels of oil equivalent per day (boepd) in Q2 2024, compared to 387,000 boepd in Q2 2023[54] - Net production in Guyana increased to 29,000 bopd in Q2 2024 from 13,000 bopd in Q2 2023, marking a 123.1% increase[69] - The average realized crude oil selling price was $80.29 per barrel in Q2 2024, up from $71.13 per barrel in Q2 2023[54] - Exploration and Production (E&P) revenues for Q2 2024 were $3,226 million, up 40.5% from $2,295 million in Q2 2023[63] Financial Risk Management - Financial risk management activities include the use of futures, swaps, or options to mitigate commodity price risks, with notional amounts of outstanding contracts at June 30, 2024, being $232 million for foreign exchange forwards/swaps and $100 million for interest rate swaps[47] - The company has outstanding foreign exchange contracts with notional amounts totaling $232 million to mitigate foreign exchange risks[88] - A 15% increase or decrease in interest rates would affect the fair value of debt by approximately $420 million or $450 million, respectively[88] Other Financial Metrics - The debt to capitalization ratio for debt covenants improved to 30.8% as of June 30, 2024, down from 33.6% at December 31, 2023[80] - Corporate and other expenses, net, decreased to $18 million in Q2 2024 from $20 million in Q2 2023, primarily due to lower legal and professional fees[77] - Additions to property, plant, and equipment were $2,108 million in the first six months of 2024, an increase of $450 million compared to the same period in 2023[81] - The company reported a share-based compensation expense of $71 million for the six months ended June 30, 2024[15]

This quarterly report represents an earnings surprise of 5.65%. A quarter ago, it was expected that this oil and gas producer would post earnings of $1.73 per share when it actually produced earnings of $3.16, delivering a surprise of 82.66%. Hess, which belongs to the Zacks Oil and Gas - Integrated - United States industry, posted revenues of $3.26 billion for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 1.06%. This compares to year-ago revenues of $2.32 billion. The company has ...

(a) Other in 2023 includes capital and exploratory expenditures mainly associated with Canada. | --- | --- | --- | --- | --- | --- | --- | |----------------------------------------------------------------|-------|---------------|-------|------------------------------------------------|-------|-------| | Income Statement \nTotal revenues and non-operating income | | United States | | Six Months Ended June 30, 2024 \nInternational | | Total | | Sales and other operating revenues | $ | 3,063 | $ | 3,435 | $ | ...

Core Viewpoint - Hess Corporation is expected to report strong second-quarter 2024 results, with significant earnings growth anticipated compared to the previous year [1][2]. Earnings Performance - Hess has consistently beaten earnings estimates in the last four quarters, with an average surprise of 35.7% [2]. - The Zacks Consensus Estimate for second-quarter earnings per share is $2.44, reflecting a 275.4% increase from the prior year's reported figure [2]. Production and Growth Drivers - The company is expected to maintain stable performance due to its premium untapped drilling locations in the Bakken shale play [3]. - The Stabroek Block offshore Guyana is a key growth driver, with production increases from the Liza Phase 2 project and the commencement of the Payara development [3]. Revenue Expectations - The Zacks Consensus Estimate for revenues is $3.20 billion, indicating a 37.9% improvement from the year-ago reported figure [17]. Commodity Price Impact - The price of West Texas Intermediate crude oil has increased by 11.3% year over year and 5.55% sequentially, enhancing the profitability of U.S.-based producers like Hess [18]. Earnings ESP and Zacks Rank - Hess has an Earnings ESP of +2.38%, indicating a favorable outlook for earnings performance [13]. - The company currently holds a Zacks Rank of 2, suggesting a strong buy recommendation [5].

Core Viewpoint - The rising trend in earnings estimate revisions for Hess indicates growing analyst optimism, which is expected to positively impact the stock price [1] Current-Quarter Estimate Revisions - The earnings estimate for the current quarter is $2.44 per share, reflecting a significant increase of +275.38% compared to the same period last year [3] Current-Year Estimate Revisions - For the full year, the earnings estimate stands at $10.98 per share, representing a change of +117.43% from the previous year [13] Analyst Consensus and Stock Performance - There is strong agreement among analysts in raising earnings estimates for Hess, leading to a considerable increase in consensus estimates for both the next quarter and the full year [2] - Over the last 30 days, the Zacks Consensus Estimate for Hess has increased by 7.3%, with one estimate moving higher and two going lower [9] - The trend for the current year shows two estimates moving higher against two negative revisions, resulting in a consensus estimate increase of 6.88% [10] Zacks Rank and Investment Potential - Hess has earned a Zacks Rank 2 (Buy), indicating a favorable outlook based on the estimate revisions [12] - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically outperformed the S&P 500, suggesting potential for further upside in Hess's stock [11] - The stock has gained 5.6% over the past four weeks, driven by strong estimate revisions, and may still have room for growth [11]

The Oils-Energy group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Hess (HES) one of those stocks right now? A quick glance at the company's yearto-date performance in comparison to the rest of the Oils-Energy sector should help us answer this question. Hess is a member of our Oils-Energy group, which includes 249 different companies and currently sits at #12 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sect ...

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Hess Corporation (HES) , entangled in a high-stakes merger with Chevron Corporation (CVX) , finds itself navigating regulatory uncertainties that threaten to prolong the completion of a pivotal $53-billion deal, per recent reports by Reuters and Bloomberg News. Originally slated for closure in the first half of 2024, the merger has encountered significant setbacks chiefly due to an arbitration initiated by Exxon Mobil Corporation (XOM) . ExxonMobil's claim of a right of first refusal over Hess' prized asset ...