Why Is Hess (HES) Up 0.7% Since Last Earnings Report?

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].