Is a Beat in Store for Hess (HES) This Earnings Season?

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].