Hess Corporation Reports Strong Revenue and Net Income Growth in Q3 2024, Announces Merger with Chevron

Hess Corporation reported its financial results for the third quarter and the nine months ended September 30, 2024, showcasing significant growth in revenues and net income compared to the previous fiscal period.

For Q3 2024, Hess generated total sales and other operating revenues of $3,191 million, a notable increase from $2,800 million in Q3 2023. Total revenues and non-operating income also rose to $3,197 million from $2,837 million year-over-year. However, net income attributable to Hess Corporation slightly decreased to $498 million from $504 million in the prior year. For the nine months ended September 30, 2024, net income attributable to Hess Corporation surged to $2,227 million, compared to $969 million for the same period in 2023.

The Exploration and Production (E&P) segment contributed significantly to this performance, with revenues for Q3 2024 reaching $3,183 million, up from $2,798 million in Q3 2023. The average realized crude oil selling price decreased to $77.06 per barrel from $81.53 per barrel in the prior year, impacting earnings. Despite this, total net production increased to 461,000 barrels of oil equivalent per day (boepd) in Q3 2024, compared to 395,000 boepd in Q3 2023, driven by enhanced drilling and completion activities, particularly in the Bakken region and the Stabroek Block in Guyana.

Hess's total assets grew to $26,233 million as of September 30, 2024, up from $24,007 million at the end of 2023. The company reported total stockholders’ equity of $10,821 million, an increase from $8,986 million at the end of the previous year. Cash and cash equivalents also rose to $1,864 million from $1,688 million.

Strategically, Hess Corporation is in the process of merging with Chevron Corporation, with stockholders set to receive 1.025 shares of Chevron for each share of Hess common stock. This merger is expected to enhance Hess's operational capabilities and market position. Additionally, Hess Midstream LP completed a public equity offering, and HESM Opco repurchased approximately 8.4 million Class B units for $300 million during the first nine months of 2024.

The company also faced challenges, including a pre-tax impairment charge of $92 million related to its interests in the Conger field in the Gulf of Mexico and a $40 million charge for revisions to estimated abandonment liabilities. Despite these challenges, Hess's overall financial health remains robust, with a debt-to-capitalization ratio of 28.9% as of September 30, 2024, down from 33.6% at the end of 2023.