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Hess Corporation (HES - Free Report) reported second-quarter 2024 adjusted earnings per share (EPS) of $2.62, which beat the Zacks Consensus Estimate of $2.48. The bottom line improved from the year-ago quarter’s level of 65 cents.
Total quarterly revenues increased to $3,255 million from $2,320 million in the year-ago period. The top line also beat the Zacks Consensus Estimate of $3,221 million.
The strong quarterly results can be attributed to higher oil equivalent production volumes and higher realized prices for oil, natural gas and natural gas liquids (NGL).
Hess Corporation Price, Consensus and EPS Surprise
The Exploration and Production business reported adjusted earnings of $817 million, up from $237 million a year ago. The business benefited from an increase in realized commodity prices.
Quarterly hydrocarbon production totaled 494 thousand barrels of oil equivalent per day (MBoe/d), up from 387 MBoe/d in the year-ago period, primarily due to higher production in Guyana and the Bakken. The reported figure also beat our estimate of 471.5 MBoe/d.
Crude oil production increased from 216 thousand barrels per day (MBbls/d) in the second quarter of 2023 to 308 MBbls/d. The reported figure also beat our estimate of 294.9 MBbls/d.
NGL production totaled 77 MBbls/d, up from 69 MBbls/d in the prior-year quarter. The reported figure beat our estimate of 73.3 MBbls/d.
Natural gas production totaled 653 thousand cubic feet per day (Mcf/d), up from 610 Mcf/d a year ago. The reported figure also beat our estimate of 619.8 Mcf/d.
Worldwide crude oil realization per barrel of $80.29 (excluding the impacts of hedging) increased from $73.74 in the year-ago period. Also, the global natural gas price improved to $4.22 per Mcf from the year-ago figure of $3.82. The average global NGL selling price increased to $20.07 per barrel from $17.95 in the year-ago period.
Mid-stream
The company generated adjusted net earnings of $66 million, up from $62 million a year ago.
Operating Expenses
Operating expenses for the second quarter totaled $490 million compared with the year-ago level of $454 million. The reported figure was below our estimate of $527.6 million.
Exploration expenses increased to $101 million from $99 million recorded in the year-ago period. Marketing costs increased to $632 million from $547 million a year ago.
Total costs and expenses increased to $2,108 million from $1,955 million in the prior-year period.
Financials
Net cash provided by operating activities amounted to $1,893 million. Hess’ capital expenditure for exploration and production activities totaled $1,151 million.
As of Jun 30, 2024, the company had $2,025 million in cash and cash equivalents. Its long-term debt was $8,548 million at the end of the second quarter.
Outlook
For the third quarter, Hess expects exploration and production net production of 460-470 thousand barrels of oil equivalent per day. The company forecasts a total exploration and production capital and exploratory expenditure of $1,125 million for the said quarter.
Sunoco is a leading wholesale motor fuel distributor in the United States, boasting a vast distribution network spanning 40 states. With long-term contracts servicing more than 10,000 convenience stores, it distributes over 10 fuel brands, ensuring a stable revenue stream. SUN currently has a Value Score of A.
The Zacks Consensus Estimate for 2024 and 2025 earnings per unit is pegged at $7.29 and $7.26, respectively. The partnership has witnessed upward earnings estimate revisions for 2025 in the past 30 days.
SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments should create long-term value for shareholders.
The Zacks Consensus Estimate for SM’s 2024 EPS is pegged at $7.09. The company has a Zacks Style Score of A for Value. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days.
Baker Hughes, a leading player in the oilfield service sector, is known for its advanced technologies and equipment catering to the needs of upstream companies. The company expects substantial growth from LNG contracts globally due to the strong demand outlook.
The Zacks Consensus Estimate for BKR’s 2024 EPS is pegged at $2.15. The company has a Zacks Style Score of B for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.
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Hess (HES) Q2 Earnings Beat Estimates, Revenues Rise Y/Y
Hess Corporation (HES - Free Report) reported second-quarter 2024 adjusted earnings per share (EPS) of $2.62, which beat the Zacks Consensus Estimate of $2.48. The bottom line improved from the year-ago quarter’s level of 65 cents.
Total quarterly revenues increased to $3,255 million from $2,320 million in the year-ago period. The top line also beat the Zacks Consensus Estimate of $3,221 million.
The strong quarterly results can be attributed to higher oil equivalent production volumes and higher realized prices for oil, natural gas and natural gas liquids (NGL).
Hess Corporation Price, Consensus and EPS Surprise
Hess Corporation price-consensus-eps-surprise-chart | Hess Corporation Quote
Operational Update
Exploration & Production
The Exploration and Production business reported adjusted earnings of $817 million, up from $237 million a year ago. The business benefited from an increase in realized commodity prices.
Quarterly hydrocarbon production totaled 494 thousand barrels of oil equivalent per day (MBoe/d), up from 387 MBoe/d in the year-ago period, primarily due to higher production in Guyana and the Bakken. The reported figure also beat our estimate of 471.5 MBoe/d.
Crude oil production increased from 216 thousand barrels per day (MBbls/d) in the second quarter of 2023 to 308 MBbls/d. The reported figure also beat our estimate of 294.9 MBbls/d.
NGL production totaled 77 MBbls/d, up from 69 MBbls/d in the prior-year quarter. The reported figure beat our estimate of 73.3 MBbls/d.
Natural gas production totaled 653 thousand cubic feet per day (Mcf/d), up from 610 Mcf/d a year ago. The reported figure also beat our estimate of 619.8 Mcf/d.
Worldwide crude oil realization per barrel of $80.29 (excluding the impacts of hedging) increased from $73.74 in the year-ago period. Also, the global natural gas price improved to $4.22 per Mcf from the year-ago figure of $3.82. The average global NGL selling price increased to $20.07 per barrel from $17.95 in the year-ago period.
Mid-stream
The company generated adjusted net earnings of $66 million, up from $62 million a year ago.
Operating Expenses
Operating expenses for the second quarter totaled $490 million compared with the year-ago level of $454 million. The reported figure was below our estimate of $527.6 million.
Exploration expenses increased to $101 million from $99 million recorded in the year-ago period. Marketing costs increased to $632 million from $547 million a year ago.
Total costs and expenses increased to $2,108 million from $1,955 million in the prior-year period.
Financials
Net cash provided by operating activities amounted to $1,893 million. Hess’ capital expenditure for exploration and production activities totaled $1,151 million.
As of Jun 30, 2024, the company had $2,025 million in cash and cash equivalents. Its long-term debt was $8,548 million at the end of the second quarter.
Outlook
For the third quarter, Hess expects exploration and production net production of 460-470 thousand barrels of oil equivalent per day. The company forecasts a total exploration and production capital and exploratory expenditure of $1,125 million for the said quarter.
Zacks Rank & Other Stocks to Consider
Hess currently carries a Zacks Rank #2 (Buy).
Investors interested in the energy sector may look at some other top-ranked stocks like Sunoco LP (SUN - Free Report) , SM Energy Company (SM - Free Report) and Baker Hughes Company (BKR - Free Report) . While Sunoco and SM Energy currently sport a Zacks Rank #1 (Strong Buy) each, Baker Hughes carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sunoco is a leading wholesale motor fuel distributor in the United States, boasting a vast distribution network spanning 40 states. With long-term contracts servicing more than 10,000 convenience stores, it distributes over 10 fuel brands, ensuring a stable revenue stream. SUN currently has a Value Score of A.
The Zacks Consensus Estimate for 2024 and 2025 earnings per unit is pegged at $7.29 and $7.26, respectively. The partnership has witnessed upward earnings estimate revisions for 2025 in the past 30 days.
SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments should create long-term value for shareholders.
The Zacks Consensus Estimate for SM’s 2024 EPS is pegged at $7.09. The company has a Zacks Style Score of A for Value. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days.
Baker Hughes, a leading player in the oilfield service sector, is known for its advanced technologies and equipment catering to the needs of upstream companies. The company expects substantial growth from LNG contracts globally due to the strong demand outlook.
The Zacks Consensus Estimate for BKR’s 2024 EPS is pegged at $2.15. The company has a Zacks Style Score of B for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.