Earnings Highlights HES

1/30/25

Hess (HES)
Hess's production continues to increase in both of their major areas — the Bakken and Guyana. Total production for 2024 Q4 was reported at 495 mboed, exceeding the top range of guidance of 485 mboed, with overperformance in both major areas. In addition, while OPEX for the quarter declined 2.5% YOY to $12.95 per boe, full-year F&D costs were up, at $19.67 vs $16.00 in 2023.

Bakken production was reported at 208 mboed for 2024 Q4, exceeding the top end of the range of guidance of 205 mbd, with 20 mboed in NG and NGLs. This was about 7% higher than 2023 Q4's production of 194 mboed. This was achieved with a consistent 4-rig program (no crews mentioned), and they are guiding 2025 to the same levels. They expect 2025Q1 production to be lower Q-on-Q at 195-200 mboed due to weather, which would still be a 3-7% increase from 2024Q1. The company mentioned no 2025 production guidance, but with the consistent drilling program, 7-8% YOY increases can likely be expected.

GOM results were disappointing with a dry hole in Green Canyon 287 and slightly reduced production from 2024 Q3.

Full year E&P CAPEX for 2025 is slated to be substantially lower than 2024, at $4.5B vs $4.9B.